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Fund Operations

What are the best ways to compensate Scouts without paying them?

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May 03, 2023
What are the best ways to compensate Scouts without paying them?
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Community Member
Accepted Answer
May 03, 2023
There are three ways to compensate Scouts: 
  1. With a thank you and reciprocation.
  2. As a regular Venture Partner using the Venture Share agreement: https://govclab.com/2022/03/10/venture-share/
  3. Using a deal by deal structure that is complicated (and it is also risky to do from a tax perspective) We recommend that most funds do #1 or #2.
1 answer
0
Community Member
Accepted Answer
May 03, 2023
There are three ways to compensate Scouts: 
  1. With a thank you and reciprocation.
  2. As a regular Venture Partner using the Venture Share agreement: https://govclab.com/2022/03/10/venture-share/
  3. Using a deal by deal structure that is complicated (and it is also risky to do from a tax perspective) We recommend that most funds do #1 or #2.
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