All Questions

1,069
1

How is the process of assessing capital requirements?

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Assessing capital requirements is the first step in a capital call process for a venture capital fund. Fund managers determine the need for additional capital, which may arise due to new investment opportunities or ongoing fund expenses,...

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1

What should be included as Income in the Funds' P&L?

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The income in a fund's Profit and Loss statement (P&L) typically includes realized gains from the sale of investments, unrealized gains from the increase in fair market value of investments, and any income generated from the investments ...

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1

What would be good conversion rate assumptions for Content Event to Conversion Event, and then from Conversion Event to a PACT?

1. If you are asking only accredited investors to attend a "Content" event, what is a reasonable assumption that they will then attend a "Conversion" event? 2. How large should your Content event be in order to have enough interest for a Conversion event, in general? 3. How large should your Conversion event be in order to secure at least 1 PACT, in general? 4. What is a targeted attendance for a successful Conversion event?  Don't want it to be too small or too large. Thank you.

1

Where I can find a good template or example of a formal investment procedure at VC fund as a separate document. Shall cover roles, responsibilities, timelines, processes ets.

I've raised from several institutional LP's and they ask for formal investment procedure at VC fund as a separate document with roles, responsibilities, timelines, processes ets. May be someone has done something similar so I would not build from zero. I guess such procedure shall cover raising / origination / evaluation / investment decision / investing / acceleration (value creation and preservation) / monitoring / reporting / exit/

1

When invitees register for events via hub, are they provided with an option to add to calendar?

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In the registration confirmation email they are provided with add to calendar links. And immediately after registering they are shown iCal, outlook, and gCal links.

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I just created a new event via the events feature, and it looks like it sent out both the invite email (which I wanted sent) as well as a reminder template email (which I did not intend to have be sent). Where can I find the settings so next time this doesn't happen?

Top answer:

Please follow these steps, see screenshots for clarification. • Navigate to Events. • Click on the respective event. • You will see three menu options: "Event Details", "Settings", and "Event Attendees". • Click on "Event Attendees". • C...

1

Are there any SPV providers in Canada?

I have been doing a lot of research and can't seem to find any Canadian equivalents to Angelist, Carta, and Sydecar.  Brightspark Capital utilizes SPVs, and I know they are creating a beta SPV product, but it's currently not released publicly.  I am based out of Toronto, and aiming to invest in mostly Canadian & US startups. I wanted to do syndicates to help build up the track record, but again, I've been struggling to find a provider here in Canada.  If anyone has any leads for a provider, let me know!

1

What happens if an LP unfortunately passes away? What happens to their partnership interest in the Fund? Why don't the agreements address that?

Top answer:

If an LP unfortunately passes away, said LP's partnership interest will be handled by the arrangements made with respect to the LP's heirs, executors/administrators of an estate, successors, etc. The LP is responsible for setting these u...

1

How to charge deal legal fees to a portfolio company - for a standard equity investment

Hi There, Could someone walk me through the mechanics of how funds typically pay for deal legal fees out of the investment amount? Specifically, if I want to invest 100K in a startup, and the legal fees will be 5K: * does the term sheet and equity agreement state 95K? * does the fund pay the 5K to the lawyers directly? and transfers 95K to the company once the deal is closed? * in the deal memo and other investment documents, is this recorded as a 100K deal or a 95K deal? * are the deal metrics (DVPI, MOIC) calculated based on 95K or 100K? Am closing a warehouse deal in the next few weeks so would be great to get some guidance on how others have done this in the past. 

1

What are the risk of raising equity money for your ManCo? What are the best practices to structure it?

We want to raise money for our ManCo, and we want to understand the risks.  We will structure it as an SPV in our name and let external investors join through the SPV; this way, there should be no implications for governance and the cap table.  Is there anything else we need to consider? We have already spoken to a few fund managers who have done the same, and they said they did not face any issues with this structure. 

Top answer:

Investors in the ManCo will get carried interest in all future funds. While their investment provides working capital in Fund 1, GPs will grow very resentful should the firm be successful in later funds because they will share carry with...

1

When the same LP signs a new PACT with a higher amount does it overwrite the existing PACT or create a new PACT?

Top answer:

When the same Limited Partner (LP) signs a new PACT (using the same email address as before) with a higher amount, the system overwrites the existing PACT. This overwrite includes updating the PACT amount to the new higher value and the ...