Submit
Log In Sign Up
Go to Fundraising
Previous Question Next Question
0
Fundraising

Is there a venture partner agreement that covers LP fund-raising/closing?

Asked by:
Community Member
1
0
0
May 03, 2023
Is there a venture partner agreement that covers LP fund-raising/closing?
1 answer
0
Community Member
Accepted Answer
May 03, 2023
Generally, you can not directly compensate for sourcing and closing money, as these are fundraising commissions that require licensing in many jurisdictions. Funds normally offer Venture Partner roles to people that help with fundraising after the funding closes.
Thank you Adeo, can you please elaborate on the last sentence? Does this mean that Venture Partner roles are typically offered to people to over-subscribe the fund i.e. once the entire funding is completed? 
- 
Community Member
Jul 20, 2023 4:17am
Please review VC Lab's Venture Share agreement: https://govclab.com/2022/03/10/venture-share/ You can have VPs who can help with fundraising after you do 1st close. However, you can not compensate them based on money raised because that creates various broker dealer issues. 
- 
Mike Suprovici
Jul 20, 2023 2:43pm
 Add a comment

Log In or Sign Up

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

Log In
or
Sign Up

Apply to VC Lab Cohort 16

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 16
Related Questions
What are the best ways to compensate Scouts without paying them? 0 May 03, 2023 Should I Include Team Members Conditional on Fundraising and How to Communicate Their Value to Investors? 0 May 03, 2023 Is it OK to ask a Venture Partner to bring LPs with a commission fee? 0 May 03, 2023 Clawbacks and Cornerstone LPA 2.0 3 Nov 28, 2023 I recently heard about the JOBS Act that was passed in 2012 and how it enabled a VC firm to raise a $20M fund from retail investors. Does anyone else know about this? Is it really legal? 1 Jul 10, 2024