1
Fund Closing

I'm having lots of conversations to sign PACTs right now (early in VC Labs), what are best practices to ensure the LPs close when it's time? (or at least up the percentage after the pact is signed)

Asked by:
Community Member
1
0
0
Sep 29, 2023
Obviously if someone says yes to a non-binding agreement it's no sure thing of actual closing (i understand the series of yes mentality and agree it's a good strategy - so i'm in!) What are best practices to have them come through when it's time to close (to up my % of closes from PACT?) -->  What's the time frame expected or typical for LPA and capital call (to manage their expectations and get that in the conversation)? [hub reports 12-18 months - but we've discussed 6 months in vc labs so would like clarification .. i know it's not black and white though and is how fast can i close/should i close and what can we do/what do you expect of us? I'm looking to close this by the end of the year! is that realistic? well idc i'm doing it anyway we have a world to impact with good ethical investing - also looking for what i may be missing and should watch out for to hit my goal - some of the unknown unknowns!!] Thanks!
1 answer
Accepted Answer
Sep 29, 2023
You should set the default percentage of the PACT at 75% if you're in a developed market and to 50% for emerging markets.

The 'best practice' is to increase fundraising momentum. If you have momentum and an increasing number of investors are committing to the fund, you will be in a strong position to close. 

Once you have $1m - $2m in PACTs from a group of LPs (not one LP), then you can begin a formation and closing process, which typically takes 2-3 months.

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Apply to VC Lab Cohort 15

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 15