Fundraising
Venture Partner Carry percentage
A potential Venture Partner, tells me they can help me raise 30% of my target. I know I cannot give them cash or an earning proportional to the amount they raised. Is a percentage of carry the only compensation option? How much would be a reasona...
Does the UAE follow the same types of regulations on solicitation of a venture fund as does the US?
What differences do I as a need to be aware of as a new fund manager based in US, talking to a US person working in the UAE?
What assurance does an LP have that the GP will not call capital faster than over the promised investment period of 3-4 years?
An propective LP wants some assurance that their commitment will not be called substantially faster than the proposed 3-4 year investment period. What's the best way to address this contractually in the LPA, and in practice?
What's the ideal way to identify quality connectors within my network?
My experience with connectors is limited, and it's unpredictable to determine which contacts might be good connectors in advance. Those I initially thought could be good connectors sometimes didn't fit the bill. How can I identify who to approach?...
How much should you pay a broker dealer to place funds for their wealth management clients into your fund?
How to best use LP databases when you can’t generally solicit?
Using them for newsletters, attending targeted conferences, general networking, and cold calls seem like good places to start, but are there any other ideas/strategies/best practices? Thank you.
Do you share the fund's current AUM to early LPs when catching up after some time/when asking for LP intros?
Do you share the fund's current AUM to early LPs when catching up after some time/when asking for LP intros? How do you position it so it's a positive and not a negative? How do you leverage it to get more LP intros?
For GPs who have hosted LP events - have you ever hosted joint events with other GPs who lived in your area? If so, how did they go?
I recently discovered that a few VC Lab cohort members live in the DC area. I am wondering about the effectiveness of planning LP events with other GPs. What’s more beneficial to GPs and more attractive to LPs - a larger joint event like a happy...
Are preferred stock rounds generally raise on pre-money or post-money valuations?
Can I have a first close of $500k with a target fund size of $4 MM?
WIth a target fund size of $4 MM, should I be aiming for more than $500k in my first close?
What's the new language for pacts with 'Fill in the Form' - do we include this on the PACT landing page and/or the custom banner when potential LPs are viewing our deck?
Mike had mentioned it this week - 'fill in the form' for PACT signing. Is it better softer language (more inviting) that we're going for to up PACT signing %? I don't think we can edit banner language and have prompted Robert about the possibili...
Negotiating an Insider Round
Hi all, I am working on a potential small insider bridge round for a portco (capped SAFE) and there are three key existing investors in the mix for this. The other two investors want to chat amongst ourselves about valuation etc. before responding...
Target returns communicated to LPs
I just got this questions from a potential LP: What should i assume in terms of overall MOIC and target timing? Appreciate exits are hard to predict, but what should be the target based on the seed-stage VC asset class? 3-5x MOIC and some liquid...
Is capital call process for VC firm and Venture Studio is same? Or what is the process for Venture Studio?
Hi All! Let's say my fund size is $6MM, so how much I can raise from single LP? Or how do I decide how much to raise from each LPs? Is there any formula or concept around this? Looking forward for your valuable advice. Siddharth
For how long does a custom generated PACT link remain valid?
If I email a custom PACT link to an LP, till what time period they can use it?
Track record as a nominee of a regulated fund
Hi, our previous fund sits as a nominee of an FCA regulated fund, we manage all the investments and fundraising, they manage the reporting and compliance with the FCA to allow us to operate. This is a fairly standard structure for early stage fund...
Series B Fundraising
What year-over-year revenue growth percentage should you look for from a SaaS-based startup in order to consider it for a Series B fundraising round?
Metrics For First Funds
What metrics for first time fundraisers matter most in the eyes of LPs for raising a second fund? In other words, what KPIs / metrics must be relatively high to best ensure that a first time fundraiser will be able to raise a second fund?
LP Solicitation
A LP (naturalized US citizen) signed a PACT and wants to help recruit additional LPs in the US and Mexico. Are there solicitation issues that I need to be aware of for myself (GP) and my LP? Thank you.
Fundraising with placement agents
As an emerging fund manager, is utilizing placement agents a prudent choice for fundraising? One of the significant challenges I face is having a limited network, which has hindered my ability to initiate a VC fund. I would greatly appreciate guid...
Startup Valuation
What valuation method would be most appropriate for a pre-revenue startup with a high potential and high-risk profile?
Strategies for attracting the right LP's
What are markers of good fit for the fund you are developing? What would constitute red flags?
Most effective way to find LPs
Is there the most effective way to find LPs or it would be a combination of ways? For example, direct introductions, VC events, etc.
DDQ and PPM
Are due diligence questionnaire and private placement memorandum required documents in order to attract serious / institutional LPs?
What's the most ideal age of person to start a VC firm?
Is there any specific age of fund managers that LP's prefer? Is there any stats available about age of first time fund managers?
What are LPs looking for in emerging fund managers in this current market environment?
Hi everyone - as we all know, the venture fundraising scene has changed dramatically in the last year or so due to market conditions, global volatility/conflicts, interest rate growth, and so forth, In the future, after I get some experience under...
What are some glaring qualitative, interpersonal, or behavioural alarm bells or red flags when attempting to raise money from a limited partner?
What are some objections from LPs as an emerging manager and how to handle them
Seeking what are some typical objections LPs may ask from a First-Time / Emerging Manager and how best to answer them. Try to craft my answers to get closer to more "Yes"
What is the most effective way to create relationships with LP's?
Can LPs increase their capital commitment after the Fundraising Period has ended?
How I can download all the folders of a Data Room?
A potential investor is asking to share with them the complete data room files by email given firewall issues (very common for big institutions) and we are willing to share this info. However, the only way to download the files I am founding is on...
Is it a concern to raise money from Chinese LPs (mainly high net worth or GPs) to invest in US companies?
Given the geo political tension and CIFUS regulations?
LP side letter - what should or shouldn't do?
An LP asked me for some 'perks' and I want to formalize it somehow. What should and/or shouldn't I do with such a side letter? Should I actually sign it?
PACT Domicile & Management Company
Since at this stage, legal hasn't been engaged, the management company and the fund have not been established. What format of names should be used in the PACT for the management company and fund? What if the domicile hasn't been decided. Might be...
LP fundraising
Are there any repercussions in approaching LPs (who invest in many other funds ) with whom relationships were developed while working at a prior fund?
Why does the GP commit not count towards the first close target amount?
What will LPs audit before they commit?
what is a normal process that LPs do due diligence before they commit?
What should I include in my data room for individuals like HNWI?
Attribution Letter Options
Coming out of a CVC that invested on a balance sheet basis not a fund basis, what is a good example on getting an attribution letter? Some options I was thinking: • Letter stating that the investments on my deal sheet were led and executed by me •...
Attribution Letter
Which track record metrics being reported to LPs would require attribution letter and which metrics do not?
Investment track record
If I can't use the entire fund's IRR without the attribution letter to highlight my investment track record, what can I use to demonstrate metrics, secret sauce, etc.?