All Questions

Yes, please review this article: https://govclab.com/venture-share-2/

Yes, please review this article: https://govclab.com/venture-share-2/

There has to be a contractural relationship for you to receive money. They either need to invest in the Limited Partnership or the General Partnership.

There has to be a contractural relationship for you to receive money. They either need to invest in the Limited Partnership or the General Partnership.

TL:DR - it's difficult, and we always recommend erring on the side of following regulations. Read the following: https://govclab.com/2022/06/28/general-solicitation/ Here are a few things that you should avoid mentioning just to be saf...

TL:DR - it's difficult, and we always recommend erring on the side of following regulations. Read the following: https://govclab.com/2022/06/28/general-solicitation/ Here are a few things that you should avoid mentioning just to be safe: • Your fund’s name, thesis or fund size, or the fact that you are raising a fund • Your fund’s strategy • Your one sentence pitch You may be able to carefully talk about:  • Your background • The types of companies/founders that you personally are interested in investing in and why • Market inefficiencies that you see

Please see the Venture Partner Agreement and the included footnotes on 409A. Class A shares are issued to managers and partners in the GP, and Class V are issued to investors in the GP. Venture Partners are traditionally issued Class A. ...

Please see the Venture Partner Agreement and the included footnotes on 409A. Class A shares are issued to managers and partners in the GP, and Class V are issued to investors in the GP. Venture Partners are traditionally issued Class A. The Shares are generally issued at the inception of the Fund for a nominal value per Share, though there can be many complicating factors to consider. 

cap adjusted projection

cap adjusted projection

As you accelerate your pitching you will use a PACT to collect interest. Then after you have $1m+ or more collected in PACTs, your law firm will help you incorporate all the entities and governing docs. Then you will send LPs an LPA to s...

As you accelerate your pitching you will use a PACT to collect interest. Then after you have $1m+ or more collected in PACTs, your law firm will help you incorporate all the entities and governing docs. Then you will send LPs an LPA to sign. 

You should try to build some rapport before you discuss the topic. Then, the questions should be something like this: 1. Do you invest in new mangers? 2. How many have in invested in last year?

You should try to build some rapport before you discuss the topic. Then, the questions should be something like this: 1. Do you invest in new mangers? 2. How many have in invested in last year?

There are none. Often you don't need to compensate the accelerator however. It's to their benefit if your fund invests in their companies

There are none. Often you don't need to compensate the accelerator however. It's to their benefit if your fund invests in their companies

It all depends on what is spelled out within the legal documents, but most times, management fees are calculated on committed capital.

It all depends on what is spelled out within the legal documents, but most times, management fees are calculated on committed capital.

Yes you can disclose the terms. It’s usually not good practice to mention co-investors unless you have permission.

Yes you can disclose the terms. It’s usually not good practice to mention co-investors unless you have permission.

You can not generally solicit interest from LPs and there are no “secret lists” that work. You need to use Connectors and mine your existing network to find LPs. If you are going to do an event, it needs to be a small private dinner or ...

You can not generally solicit interest from LPs and there are no “secret lists” that work. You need to use Connectors and mine your existing network to find LPs. If you are going to do an event, it needs to be a small private dinner or gathering where all invited are known and wealthy. Follow the guidance in the weekly find building Sprints, and you will meet and cultivate LPs.

You don't necessarily need an IC. If you want it, you can build it however it's up to you how you build it. Some have only the GPs. Others have an LP and others have a set of key individuals that are uniquely qualified to do well. That...

You don't necessarily need an IC. If you want it, you can build it however it's up to you how you build it. Some have only the GPs. Others have an LP and others have a set of key individuals that are uniquely qualified to do well. That being said, you don't need one, and it depends on your investment strategy and pace.

Offering the opportunity for your LPs to invest along side your fund (if there is additional room in the round) or in following rounds can provide additional value to both your LPs and portfolio companies. In these cases, you may want to...

Offering the opportunity for your LPs to invest along side your fund (if there is additional room in the round) or in following rounds can provide additional value to both your LPs and portfolio companies. In these cases, you may want to consider an SPV to roll up these investments and take carry. This should be clarified in advance.

You can remove the Anchor section in your Fund Overview document if you don't plan to have one, which is common for new and emerging managers.

You can remove the Anchor section in your Fund Overview document if you don't plan to have one, which is common for new and emerging managers.

No it does not. Venture Partners are part time and by definition have limited bandwidth, as a result. So in this case, they can only handle a limited number of companies.

No it does not. Venture Partners are part time and by definition have limited bandwidth, as a result. So in this case, they can only handle a limited number of companies.

We use SumSub for AML and KYC purposes (though they are not true "background check" services"). We don't have a deal with these vendors for accelerator participants as of this message. 

We use SumSub for AML and KYC purposes (though they are not true "background check" services"). We don't have a deal with these vendors for accelerator participants as of this message. 

VCs typically don't sign NDAs. Given how many deals they see, it's just not prudent to so usually. There are exceptions to all of this of course, but it's uncommon.

VCs typically don't sign NDAs. Given how many deals they see, it's just not prudent to so usually. There are exceptions to all of this of course, but it's uncommon.

For investors, it’s definitely post money SAFE because they set a fixed ownership percentage.

For investors, it’s definitely post money SAFE because they set a fixed ownership percentage.

Tell them that the PACT is non-binding and that you will share your data room with them after the sign a pact. Providing more info will not close the deal. It’s usually the opposite.

Tell them that the PACT is non-binding and that you will share your data room with them after the sign a pact. Providing more info will not close the deal. It’s usually the opposite.

Rolling funds are great for part-time angel investors that want to add more structure to their practice. They are very sub-optimal for enduring venture capital firms. They are also very difficult to manage when you have a small fund beca...

Rolling funds are great for part-time angel investors that want to add more structure to their practice. They are very sub-optimal for enduring venture capital firms. They are also very difficult to manage when you have a small fund because of all the infrastructure costs, unless you use a platform like AngelList. However, AngelList owns the entities and the bank account, so it’s impossible to build and enduring VC firm on it. Finally, most LPs are not familiar with them and you will make your fundraise significantly more challenging. If your goal is to build an enduring VC firm, rolling funds are very difficult to scale.