One question getting asked as a solo GP is how to tackle the key-person clause. What's the best way to tackle this? Strong IC?
Is it lame to use my last name for the management company instead of something more abstract? (My last name is not Andreessen)
Hi everyone! I hope you’re doing well! I had two questions: 1. As a first time fund manager what do you think of me starting my fund under another funds wings? Essentially starting a micro VC under someone else’s current VC to share the resources with them as well and save on costs. 2. Would Angel investors be potential LPs? What is the best way to approach an LP? Directly ask them if they would invest or warm them up over a period of time? Thank you so much!
What is a standard hurdle on carry for first time funds? I have an LP saying at least a 10% IRR is what they're used to.
How would it work if an LP wants to up their commitment after they already signed a PACT? or may be after they already wired money for the first capital call?
I’m raising a $10 million fund. What’s the maximum check size of the deal that I should warehouse?
Question about warehousing/liquidating/SPVing Bytedance RSUs a non-thesis holding that doesn't fit my pre-seed fund thesis I have about $2mm in Bytedance RSUs (assuming an implied valuation of $300B). Can't be sold on secondary because of restrictions but they can be transferred via 'forward contracts' that do something similar. I would like to either add to fund or liquidate some of those holdings in Bytedance (about $1m). What are my options? Should I offer this as an SPV on my own? Is there a way to collateralize for a loan the Bytedance RSUs (no bank will do it for these afaik)? Or do I just hold these?
Hi all - I sent my thesis to a friend who happens to be an institutional investor. He asked me what type of equity kickers they might be entitled to as an LP. I'm tempted to state that the standard agreement is 2/20 again because its such a small fund I don't think I should be building any complexity into the LPA's. What are your thoughts? I'm not sure if this is a VC thing or it is something more common in PE.
Is there any suggested template (or format) for a 1 pager fund summary to send to prospective LPs or VPs instead of the full presentation where the thesis statement would be too little and the full pitch deck would be too much (for those cold reachouts who would not be available to do an in-person pitch at first)? Mike Adeo
Looking at the pre-curriculum in the there is a table which helps to relate team size to fund size (attached). My question is how likely is it that an LP would be willing to put in an investment into a GP who is doing this part time i.e. what is shown for funds under $15M? Is it realistic to raise a pre-seed/seed fund with only a part-time commitment?
What is the purpose of the Fund Overview? Who will we eventually send this document too? Thanks!
The PACT should be relevant to the country of the GP (Israel)or the country of the LPs(Braizl)?
If some of these are “qualified” status do they count as part of the 99 accredited investor limit?
How much ROI I suppose to promise or offer my LPs? As best practices?
How should I address questions from my existing LPs if they get surprised about adding a venture partner to my website public presence and to my fundraising deck?
Hello we need your help. How the LP's may react to onboarding as an advisor a former Minister who may face prosecution for unlawful enrichment ? He will be at 999% acquited from those charges but do we agree that it is a No-Go ?
On the Fund Overview what is meant by 'Fund Rules'
Hi guys! As I am building my track record to strengthen my ability to fundraise I need advice on offering advisory and access in exchange for equity in the business.... I know a few startups that I could approach but that doesn't mean they would be suitable for the fund as I didn't access their financials etc. How should I move forward to build the track record given the limited time I have to build it before the fundraising?
What kind of discounts make sense for key early LPs? For example if I have a good friend and multi-year partner who wants to come in and can put in 3-5% of the fund and he asks for a discount to go at higher end of that. My fees are typical 2/20. Should I offer management fee discount or carry discount? How much is reasonable?
Steve Bennett mentioned investing in a management company. Is this a thing? How does it work and what are the pros and cons? I know that some friends of mine would be potentially interested I wonder if I should offer them that
Been advised that for the ambition my education fund has and the types of investments it will make (in companies and initiatives) the $15m I had in mind is too low and may dissuade some folks from getting involved - been encouraged to look at a higher number e.g. $50m with $15m as a first close. Thoughts?
We are building an accelerator backed by a city in Japan. Because of their budgetary process they will be putting about $3M/yr in 3 consecutive years. We currently are planning to establish a c-corp for the accelerator and operate it for a few years before adding funds. So the accelerator c-corp works as a vehicle for investments. We are designing it in this way for the longer-term ecosystem creation perspective - i.e. getting longer and more active commitments from Japanese CVC's. After sitting on two AMAs I got a feeling this is not such a good idea. Would you give us your thoughts on this? (Note that as we need to present it for the city council's budgetary approval in a week or so we would like to see good bad ugly of this premature idea...)
Is anyone else running a US feeder fund into a main EU fund? Would be great to hear your insights.
Is it OK to ask a Venture Partner to bring LPs with a commission fee?
Regarding team composition I have an agreement with two people that would join the fund if I raise above a specific amount. Should I include them? If so how can I communicate it in a clear value-adding way to potential investors?
There was some discussion on hurdle rates recently but what about net returns? For LPs that do not insist on hurdle rates (or even if they do) is it common to sign up to a net return multiple?
Hey everyone I am reaching out to weak connections to fundraise. Any advice on how to word my message? Should I start with small talk initially or go to the point straight up? Any templates that you used would be appreciated!
Our fund is domiciled in Sweden (Currency SEK). 75-85% of LPs are in Sweden. But 95-100% of investments are in USD. Should we just have the fund currency be SEK or does it make more sense to still do a USD fund?
regarding this _'(Track Record) Examine your Track Record of Past Deals. First identify the top five Past Deals that you have either invested in or had a role in writing the name of the company and a few words describing the business. Next think back to exactly how you initially discovered each opportunity and write a sentence that describes how you sourced each Past Deal. Then quantify how each Past Deal will be attractive to Limited Partners by looking at how the company grew how the valuation increased or how much money was generated by the exit and write a sentence about how value was created at each Past Deal. Lastly reflect on how your actions increased the value created at each Past Deal and write a sentence on your Value Add for each business.'_ - if most of your deals have been through angellist syndicates which contain confidentiality rules that mean you can't name the businesses you've invested in through them plus one deal that you can name that was brought to you as part of an influencer SPV (e.g. given equity) how should you handle this?
Is it a good approach to include the PACT when sharing thesis with potential LPs?
What do you think of the response from an LP who declined to participate in the fund?
Do LPs ask for a deck before the first meeting?
Hello all Which platform is cheaper efficient and LP friendly for forming a delaware fund? I have seen AngelList Carta and Allocations but dont know which is better. Any thoughts?
Should you send the PACT first and require it be signed before sending a deck? I know this has been answered 100 times over but I have conflicting information in my notes from different webinars we’ve seen. Is it step 1) meeting 2) get pact signed 3) send deck? Or can step 2 & 3 just be combined.
Hi all! Has anyone been asked about DAF structures from LPs? For context my fund has an impact lens and I'm looking to find ways to align with LPs who are interested in that above financial returns alone.
Just got feedback from a sophisticated potential LP who has worked in alternative assets: “Hey you’re not in SF! You need to be at the center of it all and networking with founders at parties every night!” How do I push back with my preference to be remote?
From everything I've read so far and the founders I've spoken to there does not seem to be a strict demarcation between an angel fund and a pre-seed fund. Is this something more relevant for LPs than for founders? Is there a difference in the way an investment is structured? Thank you!
How long do partners have to work on fund formation without being compensated? Is it possible to have a side job during this period? Can you pay yourself after the first capital call?
Any tips for A. Positioning venture partner track records in data rooms and (relatedly) B. Articulating track records that include confidential deals? (I have a venture partner who does technical dev for a lot of well-known agtech co's but that work is largely confidential)
Had a call yesterday with a connector who offered to make referrals to a number of family offices he is currently working with. They are likely to be good quality/well targeted referrals. He asked me to send the fund slidedeck over so he could forward it to them. What should I do here? Just send the two page summary and hold the deck back. Or send the whole deck? Or a trimmed back version of it? It will be going to quite sophisticated potential LP's so I think maybe not a problem to send the whole thing? I can gate them with access to more detailed information (fund model deal memos data room etc) if things progress.
Would showing angel deals done recently be helpful as part of a track record to share with LPs or not really since no traction will be visible in such a short span of time? And if yes would they also care about number or size of such deals?
If we have a university want to put money towards the fund but they can't be an LP they just want to put money towards org expenses do they still sign a pact?
I'm a first time fundraiser and I have some super basic questions: Is there a standard or basic term sheet for a LP? Is anyone who wants to invest considered an LP?
Is it appropriate - as a conversation starter e.g. at a conference in 1:1 conversation - to ask an LP (Corporate Corporate VC HNWI or Family office) what their investment focus is and if they only make direct investments or also invest in first time funds (without speaking about the fund thesis to avoid public solicitation)? If they ask us we can then lead the conversation over to what we work on?
In discussions with prospective LPs re participation in fund is it common / ok to disclose investment terms for warehoused companies including other co-investors etc?
While building our network of potential LPs do you recommend meetups that seem to be designed for fundraising?
Regarding the Fund Overview Doc it mentions an Anchor. I seem to remember it being considered a bit old fashioned. As it happens I’m hoping to be celebrating having one. Should I include it when it lands?
One of our prospective investor want to know about the domicile jurisdiction fund structure and review the LPA & other agreements before he sign the PACT he is local. shall we provide the Delaware structure and documents?
2 LPs have talked about rolling funds… considering one is likely to do capital calls at different points in time has anyone raising <$10m given more thought to rolling fund vs regular fund?
