All Questions

Larger LPs generally do not invest in new managers, and donor-advised funds are a vehicle targeted at larger LPs.

Larger LPs generally do not invest in new managers, and donor-advised funds are a vehicle targeted at larger LPs.

The recommendations taking into account fund size. We’re assuming larger fund sizes at later stages. This is just a guide and it’s ok if you deviate from it. At the Series A, the # of investments will be greatly affected by your time....

The recommendations taking into account fund size. We’re assuming larger fund sizes at later stages. This is just a guide and it’s ok if you deviate from it. At the Series A, the # of investments will be greatly affected by your time. Each partner can only sit on a finite # of boards. With your example above, each partner will have to sit on 10+ boards, which is a lot.

yes, they are for the life of the fund

yes, they are for the life of the fund

For an individual deal, you always show the blended IRR, unless the invested capital came from different sources, such as different funds.

For an individual deal, you always show the blended IRR, unless the invested capital came from different sources, such as different funds.

Build a rebuttal by saying that startups are being launched everywhere now and, a lot of alpha will be generated in the future outside of SF. There are a lot of stats that show this.

Build a rebuttal by saying that startups are being launched everywhere now and, a lot of alpha will be generated in the future outside of SF. There are a lot of stats that show this.

It doesn’t matter that much for fundraising, and, more importantly NEVER disclose who your LPs are. That being said, you will likely have some conflicts of interests that you will need to work out with these design partners.

It doesn’t matter that much for fundraising, and, more importantly NEVER disclose who your LPs are. That being said, you will likely have some conflicts of interests that you will need to work out with these design partners.

Try to optimize for the lower fund size. You will raise a series of funds, and they will likely grow in size.

Try to optimize for the lower fund size. You will raise a series of funds, and they will likely grow in size.

From an LPs perspective, the stage is being standardized as pre-seed right now, so use that. When you use the term Angel, it indicates that you’re doing an Angel group model, which is quite different because you’re essentially syndicati...

From an LPs perspective, the stage is being standardized as pre-seed right now, so use that. When you use the term Angel, it indicates that you’re doing an Angel group model, which is quite different because you’re essentially syndicating the deal within the group.

VC Lab is designed to help people launch enduring venture capital firms. VCs invest in company equity and not in other assets. The program will be sub-optimal for non VC firms.

VC Lab is designed to help people launch enduring venture capital firms. VCs invest in company equity and not in other assets. The program will be sub-optimal for non VC firms.

Generally speaking for Delaware domiciled funds, the ManCo and GP entity are LLCs, and the fund itself is a Limited Partnership. The fund managers own the ManCo, which owns the majority of the GP entity. The Limited Partnership (where th...

Generally speaking for Delaware domiciled funds, the ManCo and GP entity are LLCs, and the fund itself is a Limited Partnership. The fund managers own the ManCo, which owns the majority of the GP entity. The Limited Partnership (where the limited partners invest into) is managed by the GP entity. 

You will pay yourself with the 1st capital call. It is possible to have a side job before you do the 1st capital call.

You will pay yourself with the 1st capital call. It is possible to have a side job before you do the 1st capital call.

This is handled by LPAs by something called a Key Person Clause. You can see how the Cornerstone LPA handles this by searching the agreement for ‘Key Individuals’ and for ‘Limited Operations’ mode: But, basically, you can tell them ...

This is handled by LPAs by something called a Key Person Clause. You can see how the Cornerstone LPA handles this by searching the agreement for ‘Key Individuals’ and for ‘Limited Operations’ mode: But, basically, you can tell them that the fund will go into limited operations mode and then, the interests of the fund will likely be distributed to the limited partners based on the terms of the LPA.

The active investment period of a fund starts when the fund is formed and closes.

The active investment period of a fund starts when the fund is formed and closes.

Exits, subsequent funding rounds and revenue growth are the best startup metrics for a Thesis in order.

Exits, subsequent funding rounds and revenue growth are the best startup metrics for a Thesis in order.

a. you do this in in the bios folder by including their CV which should highlight some of their achievements b. you redact the name of the companies

a. you do this in in the bios folder by including their CV which should highlight some of their achievements b. you redact the name of the companies

There are general solicitation issues, and the there are pitch control issue. First, your deck should never be sent without a document managment system, like Decile Hub. From a general solicitation standpoint, this should not be done, t...

There are general solicitation issues, and the there are pitch control issue. First, your deck should never be sent without a document managment system, like Decile Hub. From a general solicitation standpoint, this should not be done, technically. It’s better to send an exciting blirb about you and get a meeting first without mentioning the fund. From a pitch control standpoint, I have never seen a deck really help. It creates an easy way for the prospect to say no without meeting. It’s always better to get a meeting, build rapport, and then do the deck in a second meeting. Most larger family offices have investment processes that involve due diligence. Some take months. It’s important to meet with them to understand their process. *Don’t send the deck. Get the meeting.*

Usually Net because it’s designed to give the LP a sense of what the return on their capital will be.

Usually Net because it’s designed to give the LP a sense of what the return on their capital will be.

Angel deals are great if you can show the companies are growing. LPs don’t care much about the # of deals. It’s how successful you were with investing in those deals.

Angel deals are great if you can show the companies are growing. LPs don’t care much about the # of deals. It’s how successful you were with investing in those deals.

they are usually pretty similar

they are usually pretty similar