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General VC Questions

What is included in the Decile Partners offerings or SLA?

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Dec 14, 2023
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Accepted Answer
Dec 14, 2023
Decile Partners provides a unified back office service for venture capital firms. This includes multiple functions such as legal, accounting, tax, and audit, which are typically provided by multiple external vendors. Decile Partners also includes access to Decile Hub, a venture platform that integrates various tools needed by venture capital firms, such as CRM, data rooms, digital signing, deal tracking, accounting, and more. 

The different specific offerings of Decile Partners are based on Playbooks, scripts that Decile Partners and member firms engage in to complete activities. Below are the Decile Partner Playbooks.

PLAYBOOKS


FUNDRAISING

The Fundraising Playbooks cover various stages of the fundraising process, from finding and pitching potential limited partners (LPs) to addressing issues and unique requirements raised by LPs. They also offer guidance on closing the fund and handling problematic LPs.

- Finding LPs: Secure 10 or more qualified limited partner meetings per week.
- Pitching LPs: Improve the pitch to secure >1 yes per 10 pitches with pitch practice and exercises.
- Closing LPs: Best practices to convert LPs that sign PACTs but are not Signing LPAs.
- Institutional Diligence: Assist the GP to prepare for institutional due diligence by a Deal Room with the appropriate materials.
- Capital Call Issues: Help the GP get LPs that signed LPAs to wire if they are facing issues or if the deadline has passed.
- LP Closing Issues: Address feedback or issues from LPs on terms, etc.
- Unique LP Requirements: Address inquiries from LPs about Crypto Investment or investing from an IRA, etc.
- Problematic LPs: Handle complaints or problems raised by LPs.
- Fund Closing: Successfully close the fund when the required commitments are met.
- Decile Hub: Provide assistance with LP onboarding.

OPERATIONS

The Operations Playbooks focus on monitoring the health, compliance, and responsiveness of the general partners (GPs) and the fund. It includes playbooks related to fund strategy, structure changes, special deals, and maintaining regular responsiveness and engagement.

- Fund Strategy Issue: Address and resolve issues related to the fund's strategy.
- Structure Changes: Accommodate requests for structural changes to the LPA for normal operations.
- Special Deals: Manage GP(s) personal investments or other actions that may involve conflicts of interest or fiduciary duty issues.
- Upgrade Agreements: Complete semi-annual agreement upgrades for VC Lab.
- Decile Hub: Provide assistance to GPs with utilizing Decile Hub features.
- [Monthly] Responsiveness: Ensure GPs respond to inquiries within 3 business days.
- [Monthly] General Solicitation: Check GP(s) posting on social media and event attendance for information about the fund.

REPORTING

The Reporting Playbooks outline the tasks related to producing monthly newsletters and quarterly reports for each fund, with specific attention to LP engagement and content focused on portfolio and deal pipeline.

- [Monthly] LP Newsletter: Prepare the monthly newsletter for LPs.
- [Quarterly] LP Reporting: Prepare the quarterly or annual report for LPs.
- LP Engagement: Address issues related to LPs not opening reports or newsletters.
- Portfolio Velocity and Deal Pipeline: Create newsletter content focused on portfolio and deal pipeline updates.

TEAM

The Team Playbooks deal with team changes and additions within the venture capital firm, emphasizing that such changes should be rare and well-considered.

- Team Additions: Add a Partner, Venture Partner, Intern, etc., to the team.
- Team Changes: Remove or change the role of a Partner, Venture Partner, Intern, etc., within the team.

FINANCE

The Finance Playbooks cover the various financial aspects of managing the fund, including accounting, expenses, management fees, capital calls, distributions, year-end filings, forecasting, and addressing any KYC or AML issues.

- Accounting Books and Records: Produce and explain financials to LPs.
- Expenses: Manage and allocate expenses correctly.
- Management Fees: Calculate and transfer management fees correctly.
- Capital Calls: Fully calculate and issue a capital call correctly.
- Distributions: Fully calculate and make a distribution correctly.
- Decile Hub Accounting: Operate Firm Admin and its tools/features within Decile Hub.
- Year-end Filings and Tax Process: Manage year-end communication to LPs regarding filings and tax processes.
- [Quarterly] Financial Check-In: Produce a quarterly update report to LPs on financial matters.
- Forecasting: Help GPs prepare forecasts for the fund's performance.
- KYC & AML Issues: Assist GPs in resolving any KYC or AML issues during formation or closing.

DEALS

The Deal Playbooks outline the stages of the deal process, from initial assessments and deal sourcing to addressing deal-related problems and managing portfolio companies. It also includes guidance on conducting special purpose vehicles (SPVs) for co-investments and follow-on investments.

- Doing Deals - Assessment: Perform a comprehensive assessment after the first close or <2 deal memos per month.
- Sourcing Deals: Source less than 10 new deals in the investment pipeline per month.
- Capital Deployment Strategy: Develop the capital deployment strategy for the fund.
- Deal Problems: Improve the number of closings per quarter by addressing deal completion issues.
- Portfolio Problems: Handle unique problems or shutdowns of portfolio companies.
- Doing an SPV: Assist GP(s) in setting up SPVs for co-investments or follow-on investments.
- Decile Hub Deal Memo: Provide assistance with the deal memo feature within Decile Hub.
- [Quarterly] Portfolio Updates: Collect performance data on each portfolio company each quarter for updates.

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