What are some ways to incentivize potential LPs to come in to the first close instead of taking a wait-and-see approach?
What is the terminology VC Lab adopted for valuing a portfolio with convertible instruments being valued at their val cap?
Are there any drawbacks to accepting LP interest for smaller tickets?
What provisions should we add to Safe deals we are warehousing to be able to move it to the fund later? Is there specific verbiage we can add to make this process easy?
What’s everyone thoughts to VC advisory boards: • How useful is it for fundraising? • What about tangible benefits of quarterly check-ins for advice + LP introductions in exchange for some small percent of the GP (like 0.25%) cc: Kenneth Ballenegger
Does anyone have a perspective or done an analysis of how The Federal Reserve raising interest rates in 2022 might or might not impact tech startups multiples? Some Wall Street analysts are predicting that higher interest rates will be good for some sectors like banking stocks and bad for tech stocks which could mean that tech startups valuation could be lower. I know these are just forecasts just wondering what the VCs are thinking. Appreciate your thoughts.
What is the role of Advisors for a Fund? When do we start looking for Advisors and how do we identify the right fit and work out a remuneration (fixed vs variable). Thank you.
Clearly when choosing a GP one has to ensure good pre-existing relationships which can last another decade. How critical is the match with VPs and how painful would be the “break-up”? Is carry split vesting practiced with VPs?
How do you manage to compensate a Venture Partner that is really performing vs other one who does not do a thing if you gave them both at first lets say 1% of the carried interest?
Would LPs consider it credible if the track record I cite includes the combined investments markups and exits of me AND of my Venture Partners? Thus far I've only included deals I was personally involved in (32 investments 20 companies individual company markups of 3X 5X and 10X). These numbers would be bolstered if I add my VPs' investments including a $1B deep tech exit. But credibility (and surviving LP diligence) is important to me.
Is it common to incentivize Venture Partners on a deal by deal basis rather than having shares in the GP?
Is anyone else experiencing this issue? I have spoken to at least 7 funds of funds specifically dedicated to emerging fund managers (a perfect fit) and the following things keep coming up ) • A $5m fund is too small • We can't be more than 10% of your fund and only issue $2m+ dollar checks • Come back to us for the next fund or make this one larger With the above said I am tempted to make my fund at least $10M but we have been advised to stay at 10% of what we can raise from friends and family.
*-missed opportunities-* I was advised by a VC (raising 4th fund) to put a slide with 2-3 names of companies on-thesis we had an allocation to but could not eventually invest in because the fund wasn't launched in order to show dealflow. What do you think?
Dear all I have a question. If one of your network targets you have sent an email to provide thesis feedback asks ‘ Do you already have money in your fund’ what do you respond whilst avoiding general solicitation rules??
Can anyone share light on a best practice due diligence process and how they go about doing it? The best ones I've seen involve reference checks tech stack verification customer interviews and a million other things. Perhaps a checklist one can use internally or a trusted third party?
We’re working on our second close and a fund-of-funds is in the process of conducting due diligence on us. Is it ok to include the signed LPs subscription agreements in our data room or is that considered disclosure of LPs confidential info?
When forming an advisory board of specific industry professionals for your fund that helps support start-ups we invest in do these advisors fall under venture partner agreements or another role?
Would it be possible to use investment from your own fund to invest into companies you serve in as an operator? Are there any legal issues with this? Can it help or hurt with raising by being upfront about it?
