what are industry statistics about average vc returns of investments in pre-seed vs. later stages
why invest in pre-seed while risks are much higher
why invest in pre-seed while risks are much higher
The topic of selling a stake in the fund's GP or ManCo to investors has come up several times in webinars and AMAs. This seems to be a way to for the partners to raise capital to support themselves during fundraising or finance their GP commitment...
Why is recycling fees complex? It seems like simple math in accounting. I asked Decile Base but got an uninformative answer: `Recycling fees in the context of venture capital refers to the process of reinvesting proceeds from the sale or exit of a...
Would love to find some aggregated data on historical performance for funds following the two different approaches.
1) An ordinary bank fixed deposit doubles in 7.5 years or less with zero risk. 2) S&P 500 $100 invested in 2011= $444 in 2023, a return of 344%, 12.5% per year. If Adjusted for inflation, published fund returns will be even lower. I saw a similar ...
On top of that, let's assume an investment in the seed round is made via SAFE and the share price at that stage is $0.15. In the Seed round, a priced investment comes in and the new share price is $3. In this case, is the investment from the Seed ...
So with an understanding of the power law in its concept, does anyone know of an excel formula or model for figuring out what level of growth is needed by the 20% to break-even? the numbers to consider: I have written 50 checks for $100,000 Suppo...
Following the table here: https://govclab.com/2022/11/07/managing-fund-expenses-for-venture-capitalists/ What are typical caps and best practices (which are limited and unlimited?) and for different size funds. Also a bit confusing that somethin...
When talking about fund return, Adeo mentions PAR (here is the post: https://www.linkedin.com/posts/adeoressi_kickstart-your-vc-success-activity-7119709217782992896-LeCv?utm_source=share&utm_medium=member_desktop). It is unclear how to calculate t...
This new partner will help fundraise and close the 2nd half of the fund and potentially help me oversubscribe.
Let's say we do 4 capital calls over 2 years, and the management fee structure is 3% for first five and then 1% for next five. SO once an LP has transferred money into the account during the initial two years -- part of that capital is left ther...
and at which point in the program do i do this?
How much is an acceptable fee (as a %) for an accelerator fund to take as an upfront fee instead of charging management fees, per year, as 2% of committed capital?
My assumption about portfolio results are the following: if we make 20 seed investments, 2 could be highly successful, 8 will be boring survivors (returning little) and 10 will totally fail. Is that ratio in line with typical seed results? If not,...
Forecasting is obviously inaccurate, but how would you model a portfolio with "realistic" exit valuations? Could startup's current deck provide any usable inputs for such model? E.g. market size, market CAGR, team experience etc? Obviously when ...
Is there a standard or 'rule of thumb' that GPs should follow for capital call frequency? What frequency would allow the fund to be liquid but respectful of the LPs?
What are the deployment KPIs required for first-time fund managers towards the goal of second fundraise?
How do venture capital firms strategically balance their investment portfolios to mitigate risk and maximize returns, while considering factors beyond financial performance, such as social impact and environmental sustainability?
I am particularly interested in healthcare, medtech and biotech startups in developing countries but I struggle to understand how specialized funds can minimize the risk of industry exposure. As an example, here in Brazil, the private healthcare s...
Do Impact funds generally generate lower returns than others? What is the expectation held by Limited Partners?
Decile Base says a ManCo should be formed. However, in Sprint 9, Deliverable 9, the "Distribution" strategy doesn't require the formation of a ManCo.
Should I have a hurdle rate?
Specifically for showing return expectations per individual startup.
Is the management fee based strictly on the commit amounts, or does it need to factor in reductions in the amount under management resulting from payouts of management fees?
If I hire someone at a Principal level at my VC firm what's the general carry I should offer? Is there a rough breakdown anywhere of what is market in terms of carry offered for various roles at a VC firm?
Progress Partner - "will entitle Progress Partner with the Venture Carry in such subsequent pooled investment vehicles" To my understanding of the clause below, you will get carry in follow-on funds as well?
Regarding diluting ManCo as new shareholders come on (e.g. Tammy), if their shares are vested, does the dilution happen over time as the vested shares are awarded?
Is the management fee not part of GP payout?
Do we have any rough estimates on legal costs for each year? Excluding costs that are charged directly to portfolio companies.
What is an American distribution waterfall
What is Total Value to Paid-In (TVPI)? How is it different from MOIC?
What is Multiple on Invested Capital (MOIC)
What is an Investment Period