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Venture Legal

Can a VC Fund Invest in Another VC Fund and Maintain a Diverse Portfolio?

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Community Member
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May 03, 2023
Can a VC fund invest in another VC fund? Let's say they have a portfolio of 10 startups and 2 investments in other VC funds?
Top Repies
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Mike Suprovici
Accepted Answer
May 03, 2023
Many LPAs will prevent your fund to invest in another fund. Investment into a non-operating company like a fund most likely counts against your 20% non qualifying investment bucket to maintain the VC exemption for the Manager.
1 answer
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Mike Suprovici
Accepted Answer
May 03, 2023
Many LPAs will prevent your fund to invest in another fund. Investment into a non-operating company like a fund most likely counts against your 20% non qualifying investment bucket to maintain the VC exemption for the Manager.
What type of LPA will allow us to invest in a fund that is focused specifically in a sector that would not conflict with direct investment into other sector portfolio companies?
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Community Member
Jul 13, 2023 3:54pm
See the updated answer above Khaled. 
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Mike Suprovici
Jul 13, 2023 8:38pm
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