All Questions

The recommended time frame is ASAP. Subsequent closings will depend on demand - however once you do a 1st close most LPAs specify that you have 18 months to close the rest of the fund (often called the Fundraising Period). Depending on t...

The recommended time frame is ASAP. Subsequent closings will depend on demand - however once you do a 1st close most LPAs specify that you have 18 months to close the rest of the fund (often called the Fundraising Period). Depending on the LPA, this can be extended, however this isn't always an option, and may not be strategically a good move.  TL:DR - don't rely on extending the Fundraising Period if possible.   Decile Partners and VC Lab strongly recommend continuing to prioritize fundraising (~80% of a fund manager's time and focus) until the entire fund has been closed. 

It’s reasonable for you to invest in companies that are incorporated in Delaware. A lot of companies in LATAM do this because it gives them access to international investors. That being said, it really depends on your strategy and deal f...

It’s reasonable for you to invest in companies that are incorporated in Delaware. A lot of companies in LATAM do this because it gives them access to international investors. That being said, it really depends on your strategy and deal flow. If most of your Columbian deal flow is incorporated locally, you may not have a choice and they you may have to choose for efficiency purposes. Please be sure not to provide any tax advice to prospective portfolio companies or LPs alike. 

The allocation strategy between initial investments and reserving capital for follow-ons depends on the fund size and the strategy. Many, or even most, small Fund 1s don’t have reserves because due to their size. 

The allocation strategy between initial investments and reserving capital for follow-ons depends on the fund size and the strategy. Many, or even most, small Fund 1s don’t have reserves because due to their size. 

Yes, you can include VPs on your Team slide

Yes, you can include VPs on your Team slide

No it's not because VPs are part-time members of the fund and LPs don't put much weight on their experience. 

No it's not because VPs are part-time members of the fund and LPs don't put much weight on their experience. 

No. First close them (money in the bank). Then, you may ask them for permission to use their name in future closes.

No. First close them (money in the bank). Then, you may ask them for permission to use their name in future closes.

No. You should avoid this. Say something like: out of respect for their privacy we will not disclose this information, and we would not do that with you either should we get a similar request in the future.

No. You should avoid this. Say something like: out of respect for their privacy we will not disclose this information, and we would not do that with you either should we get a similar request in the future.

Those VPs will definitely have conflicts and the firms they work for will have to disclose this conflict to their LPs.

Those VPs will definitely have conflicts and the firms they work for will have to disclose this conflict to their LPs.

Don’t do this for your first fund. The ROI is not worth it.

Don’t do this for your first fund. The ROI is not worth it.

You should include succesful angel investments that are also on thesis. 

You should include succesful angel investments that are also on thesis. 

You don’t need to be accredited to manage a fund.

You don’t need to be accredited to manage a fund.

Limited Partners need to be accredited in the US by the US standard for a fund domiciled in Delaware.

Limited Partners need to be accredited in the US by the US standard for a fund domiciled in Delaware.

For Fund 1, you should pick one approach. It’s hard enough to sell one or the other (FoF is a much harder sell BTW). The LPA will need to updated by counsel if you want to go with this approach.

For Fund 1, you should pick one approach. It’s hard enough to sell one or the other (FoF is a much harder sell BTW). The LPA will need to updated by counsel if you want to go with this approach.

This sounds like you will be working for them :slightly_smiling_face: They are asking you to manage their fund. If you want to run your own firm, consider politely declining them.

This sounds like you will be working for them :slightly_smiling_face: They are asking you to manage their fund. If you want to run your own firm, consider politely declining them.

Yeah, they can be. It depends on the company and their responsibility. Venture partners can serve various roles: https://govclab.com/2022/03/10/venture-share/

Yeah, they can be. It depends on the company and their responsibility. Venture partners can serve various roles: https://govclab.com/2022/03/10/venture-share/

You may be able to list yourself as Managing Partner (and ensure that there is no "contact us" anywhere) - however please review the following carefully with respect to general solicitation: https://govclab.com/2022/06/28/general-solici...

You may be able to list yourself as Managing Partner (and ensure that there is no "contact us" anywhere) - however please review the following carefully with respect to general solicitation: https://govclab.com/2022/06/28/general-solicitation/

The amount is not as important in warehouse deals, what’s more important is markups. Let’s say that you invested 10k in warehouse deal, but now that position is up 30x. That’s a meaningful markup for your LPs that they would get at cost....

The amount is not as important in warehouse deals, what’s more important is markups. Let’s say that you invested 10k in warehouse deal, but now that position is up 30x. That’s a meaningful markup for your LPs that they would get at cost. And, if you can follow into deal or have pro-rata, that’s even better.  You are going to need to set clean and consistent rules about the deals you warehouse because you can’t cherry-pick. So, for example, you can say, all deals in 2022 will get moved into the fund. You CAN NOT warehouse an SPV.

The answer is No. That being said, depending on your strategy, you may want to put together a set of LP dinners where the LPs can meet the companies. But just set the expectations straight about the rules of engagement.

The answer is No. That being said, depending on your strategy, you may want to put together a set of LP dinners where the LPs can meet the companies. But just set the expectations straight about the rules of engagement.