All Questions

with tagfund economics

Asked by:

Community Member

Nov 10, 2023

Following the table here: https://govclab.com/2022/11/07/managing-fund-expenses-for-venture-capitalists/ What are typical caps and best practices (which are limited and unlimited?) and for different size funds. Also a bit confusing that something like Travel & entertainment is a fund expense but paid for by the manager (I get it, and wouldn't if it was a fund expense it would be paid for by the fund?) - can you explain? Thanks!

Top answer:

The table in this blog post is a good start: https://govclab.com/2022/11/07/managing-fund-expenses-for-venture-capitalists/ There are no best practices here. Every fund is different. For example, a Deep Tech fund many need to spend a lo...

- Mike Suprovici

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Fund Operations

For investment volume.. I've planned 40 investments at 100,000 each for a $5 MM fund ($1 MM for management fees over 10 years). I'm not sure what the thinking is for this. Can I have clarity on what is recommended or what my thinking should be?

Asked by:

Adeo Ressi

Oct 11, 2023

(also for our team that's 8 people on boards - 5 each) https://fi-hatchbox-production-uploads.s3.amazonaws.com/drive/VCLab_Deal_Volume.png

Top answer:

The estimate of doing 40 $100K deals with a $5 MM fund is a dispersed strategy. You will not sit on Boards with $100K investments. Your capital deployment strategy is dependent on your fund strategy. If you want to get a lot of shots of ...

- Adeo Ressi

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Fund Economics

How exactly is management fee taken from fund?

Asked by:

Community Member

Sep 24, 2023

Let's say we do 4 capital calls over 2 years, and the management fee structure is 3% for first five and then 1% for next five. SO once an LP has transferred money into the account during the initial two years -- part of that capital is left there to later pay management fee as per schedule?

Top answer:

Correct - if you call 100% of their commitment over the 1st two years, then you would have money sitting in the fund's bank account for future management fee payments.

- Rob Del Prete 1

Fund Economics

do i need to do the financial modelling? and does decile hub provide that? what software to use or excel?

Asked by:

Community Member

Sep 18, 2023

and at which point in the program do i do this?

Top answer:

This will be covered in the second half of the VC Lab program and we'll provide all the templates etc...

- Mike Suprovici

All Questions

Can a sample spreadsheet be produced for fund expenses paid yearly or over the term of the fund?

For investment volume.. I've planned 40 investments at 100,000 each for a $5 MM fund ($1 MM for management fees over 10 years). I'm not sure what the thinking is for this. Can I have clarity on what is recommended or what my thinking should be?

How exactly is management fee taken from fund?

do i need to do the financial modelling? and does decile hub provide that? what software to use or excel?