Hi, is the win-loss ratio mentioned in Sprint 5 - Firm Positioning about how many deals does your firm go after and how many is it able to win their ideal term sheet and close?
I asked Decile Hub this question and got a slightly different answer on the follow up (i.e., on follow up, that it is permissible for life sciences companies). I am meeting with a company building a hardware product for measuring metabolites in blood, and they requested an NDA when sending us the materials. I've heard that this is more common for companies in the life sciences space, especially if they have deals with major pharma, who often require such terms. I do not think they are disclosing deals with partners that might require NDAs. What is the proper way to respond to a request like this?
I believe they are often called ASAs (Advance Subscription Agreements) in the UK. Are there any fundamental differences in how they work in the UK and US?
An LP has already signed my LPA and is bringing others into my fund as investors. He shared that a condition of bringing others is that I be full-time over the fund since this is the only way one can really run a successful venture. I agree, however I require more than my management fee provides for living expenses since Fund 1 is small. Even if I oversubscribe, it wont get us to the amount I need. My question: Investor is willing to provide me cash now for a percentage of carry as a one time payment to help support my transition to VC full time. He suggested I valuate a percentage with rationale and he will help me raise the capital for the GP carry (NOTE: this is not Management Company carry, ONLY fund 1 GP carry and has been clarified with investor. Greatly appreciate guidance on how to valuate this.
It would be great to hear about the options for startups.
Here is the response of the decile LLM: The Generally Accepted Accounting Principles (GAAP) and ASC 820 (formerly FAS 157) are involved in valuation policy by providing a framework for measuring and reporting the fair value of assets and liabilities. Under ASC 820, investments are categorized into three levels based on the observability of inputs used in their valuation. Level 1 investments have quoted prices in active markets, Level 2 investments use observable inputs other than quoted prices, and Level 3 investments use unobservable inputs. These standards ensure consistency and transparency in financial reporting.
By my estimates, this number can range from 30,000- 45,000. There are a multitude of variables to consider.
As decile hub might not be the place to send our newsletters yet. What websites do you recommend?
What are the resources that everyone here uses for staying on top of trends. There are oodles of media out there, which would be most trustworthy for keeping a finger on the pulse? Currently looking at Pitchbook, Carta newsletter, ExecSum Newsletter, and some Fortune Newsletters, anything in particular I should add to this roster?
Is it allowed for an LP to be a Venture Partner at the same time (i.e. a mentor) and be compensated ?
- I'm the solo GP of my Fund and based in Milan. - My Fund will be focusing on European firms as the concerned deal flow. - Most of my LPs are going to be from Europe and US.
We are doing due diligence on one of our investment targets, and I am comparing terms in the shareholder agreements for common and preferred shares. Recognizing that the preferred shares will have some advantages over common shares, what terms should I watch for that would be considered unreasonable treatment of common shareholders?
Prospective LPs are asking about liquidity scenarios. What's the likelihood of exits via M&A vs IPO where there may be restrictions to sell for certain period?
Is it recommended that while we are talking to LPs also take meetings with startups in our vertical? Not offering to invest but just having meetings. When an LP asks me about what exciting startups we have seen, tell them about 1-2 rockstars.
What is the general perception towards involving Sovereign Wealth Funds as limited partners?
Micro VCs have been on the rise, particularly in the last couple of years. Compared to their traditional VC peers, micro VCs are thought to be more nimble, hands-on, and have lower overheads. That said, micro VCs are generally constrained by the lack of name recognition, limited fund size, and sector coverage. I personally view micro VCs as a positive contributor to the early-stage startup ecosystem, providing much-needed capital to get startups with potential off the ground. Micro VCs are also often seen to direct investment to underrepresented/diverse founders and in sectors where traditional VC funding is harder to access. Keen to hear the thoughts of the community who have been following the venture capital space for longer on whether micro VCs will continue its growth and popularity to become mainstream with time.
As DAOs (Decentralized Autonomous Organizations) begin to play a larger role in the venture ecosystem, what are some of the best practices for KYC compliance regulations? Example: A startup has a DAO on their cap table as a pre-seed investor and my fund, Hypothetical Investments, is looking to invest in their Series A round.
Thoughts on best way to finance the exercise of warrants if you don't have a cashless exercise. For example, you have Series A pref warrants that are in the money at exit, but you don't have a cashless exercise option. So you have to come up with $100K to exercise the warrants to profit $1.0MM at the exit. If you don't have the initial $100K in cash available at the time, how to best finance the conversion? Any thoughts appreciated. Thank you.
Why do articles this year seem to be so anti-VC, whether it's they are on the decline or there is no more capital to support? In listening to several webinars from VC Lab, it seems there is a huge disconnect between click bait reporting and reality of the industry. A follow up, what would be considered a true risk to the VC space?
Investing in startups and companies early in their development carries inherent risk. What are some methods or approaches to employ to assess and mitigate risks when evaluating potential investment opportunities?
I am specially intersted in understand the impact of Females in VCs
The Sprint mentions designing a landing page. Is this the landing page on the domain we registered www.[fund name].com or do we need to design a landing page on decile hub https://[fund name].decilehub.com ?
I have gone through the blog 'How to build a venture studio'.
Wonder if there are any general key metrics applicable across different industries when evaluating startups or if these metrics differ based on specific industries? If we need to specify, what are the key metrics to consider for emerging industries like AI-related ventures?
Initial Coin Offerings (ICOs), Security Token Offerings (STOs), etc.
Given how venture funds might be transforming and operationalizing, how do you think about the key tradeoffs of deciding to orient your career towards one of the following paths: 1. General Partner at VC Firm 2. Venture Partner (potentially across multiple VC Firms) 3. Operating Partner / COO at a VC Firm Are there rapid ways to perform skills self-assessments so that I can understand the option space and what paths might be a great fit / have the most interesting opportunities? Thanks so much!
In Hollywood, I've always seen famous shows like Silicon Valley which highlighted not only the initial financial investment into a promising startup but also showed how they helped guide them to a major milestone. I was wondering how much of this guiding do Venture Capital firms actually do?
