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Fundraising

Is a 25% Fund of Funds Proposal with These Terms Typical, Aggressive, or Worthy of a Counteroffer?

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Community Member
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May 03, 2023
We had an interesting fund of funds proposal for 25% of our fund. *Do you know if the proposal is typical or aggressive or have advice for a counter?* This is the offer at a high level: • 40% of commitment allocated to initial investments of our fund. • 60% of commitment allocated to co-investments in subsequent funding rounds within our portfolio ventures as selected by the FoF (we don't receive any carry) • Option for FoF to lead subsequent funding rounds (for individual portfolio companies) as Lead Investor • 1 IC seat (we're okay with it)
1 answer
Accepted Answer
May 03, 2023
You’re not going to be able to honor these terms because they are dependent on the company. What if the company doesn’t want them to lead? These are definitely NOT standard terms.

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