Hi VC Lab Family what are your thoughts on adding a link to the Fund pitch in the Newsletters?
We are in the process of getting our thesis validated by a few trusted advisors in our network and one of them make the following suggestion: _you would benefit from a corporate grant as anchor funder. OR go for a $10mn equity allocation from VC firm who need female founders._ We are not familiar with the concept of an anchor funder - does anyone have additional context they can share? Also curious if anyone has taken the equity allocation approach and can provide some additional context there. Thank you!
What's the general opinion on listing portfolio companies on the website while still raising?
Impact Fund Q: has anyone settled on an accepted assessment framework they are going to use to measure the impact of their firm dealflow and portfolio companies? Thanks in advance for sharing any thoughts and/or resources.
Is it recommended to have an LP strategy or is mixing different profiles a “good” problem? We have large Japanese VCs European CVCs Swiss Family Office and rich individuals at the gate. Do we take them all or is it better to focus on one LP type?
In our pitch decks do we mention the % of LP commitments?
Fund strategy: what’s the right amount of information to share with LP (who could of course forward it to their friends and partners)?
How much time can a fund manager spend helping founders to gain trust? Considering all the time needed for closing Fund I, how should time be allocated?
On *Warehousing* ...Adeo Mike and anybody with experience in *Accelerator related funds*: If the passive shareholders of the *accelerator* are not necessarily LPs of the new fund were you able to move the portfolio/part of the portfolio to the new fund? And if so how (any suggestions)? Thanks!
Any insights on covering legal expenses for a first fund prior to closing the fund? Local VC estimates $50-60K for initial legal work all of which are recoupable from post-close admin fees. But are people just paying this out of pocket or what?
In the #4 question it's not clear how to quantify how each Past Deal will be attractive to Limited Partners. Should we write a valuation of the future rounds of the Deals in exact numbers or just write 'very attractive' or 'not attractive'?
2) Do the individual investors within the SPV count toward the 99 (or 250) total LPs allowed? Or does the SPV count as a single LP?
1. Is the maximum number of investors allowed 99 or did it get raised to 250?
We had an interesting fund of funds proposal for 25% of our fund. *Do you know if the proposal is typical or aggressive or have advice for a counter?* This is the offer at a high level: • 40% of commitment allocated to initial investments of our fund. • 60% of commitment allocated to co-investments in subsequent funding rounds within our portfolio ventures as selected by the FoF (we don't receive any carry) • Option for FoF to lead subsequent funding rounds (for individual portfolio companies) as Lead Investor • 1 IC seat (we're okay with it)
Is it worthwhile or advisable to politely push back on anchors requesting favorable terms with resources we find that suggest that 'In contrast to traditional private equity settings none of the interviewed [for this HBS study] anchors sought fee breaks or other preferential economic terms. Some were attracted by the ability to shape the direction and legal structure of the fund or serve on the LP advisory board?' Mike made mention in a previous AMA that such favorable terms actually don't meaningfully move an LP closer to investment anyways which was interesting.
My fund model is coming in really high multiples. I am suspicious. Have sent to my team for additional layers of extreme validation and scrutiny but I’m afraid to put these numbers in the deck until I can really really defend them. Does anyone else have this issue? I feel tempted to pull some standard off the shelf numbers and put them in for now until we can validate these further and I feel more solid in them…but they’d be wrong. Thoughts?
hey we have helped a startup Increased their revenue by $500k how can I give a value for the company after this new revenue?
Hello everybody! How do you estimate Fund liquidity? Do you recommend a reference to see the outcomes of other funds?
In developing the return scenarios would approx. 1x be too optimistic for the worst case?
