Ask AI

All Questions

1,145
1

What's the typical timeline for capital contribution to be paid from the date of receiving drawdown notice?

Top answer:

Most capital call notices have a 14 day deadline. However, most LPAs have flexibility built in to accommodate LPs they may not be able to meet the deadline, within reason, due to various circumstances.

 -  Mike Suprovici
0
1

If I do a first close and do not raise the full target amount, am I obligated to return the capital to LPs who do not want to commit to a smaller fund?

Top answer:

You are not going to be obligated to return the money to investors and it will not be feasible for you to do so even in the unlikely scenario that an inexperienced LP makes an ask like this. This is because the LP's money gets invested i...

1

tell me about Decile launch

Top answer:

Decile Launch is a structured program designed to establish a venture capital firm and close its fund. It offers a unified fund formation service with bundled legal, accounting, and strategic advice. The program includes forming all nece...

1

What format should our track record be displayed in our data room. Excel?

Top answer:

You need to have different data rooms for different LP archetypes. If the LP archetype that's making this request is HNW this folder should maybe contain a few deal memos on your best angel investments. On the other hand, if the LP is an...

1

Is there a way to show a PACT link on the same screen while reviewing a Fund deck?

When you send out a deck, is there a way where you can have the PACT link show up on the same screen as the deck while they are reviewing it?  Not including the PACT link in the email that also has a link to the presentation, but a PACT link that is visible on the same computer screen as the deck.  Would make it easier for someone to click on the PACT link while reviewing the deck instead of having to click somewhere else. Like when you buy something on the web, the item and the price are on the same screen that make it easier to buy.

Top answer:

Yes! If you go to the settings for a data room folder, you will see an input to show a "Pact link banner", which will display a banner to do exactly that. [pact.png]

 -  Woody Butler
0
1

Chrome Extension

Hi! After installing the extension including the API Key, I keep getting stuck on this extension page (see screenshot). I removed the Extension and re-downloaded it, but still getting the same issue. [Screenshot 2024-10-27 at 1.35.02 PM.png]

1

Can you rename a file once uploaded?

Can you rename a file once uploaded? 

Top answer:

Yes. Whenever looking at a folder, each file will have a 3 dot menu that has the "Edit/Re-upload" option. Alternatively, when viewing a file page, there will be a button to "Edit/Re-upload". Clicking that will open menu to rename the fil...

1

Where can I find an example of a VC Prospectus?

Top answer:

VC funds traditionally have a Thesis, a Presentation, and an Overview. Larger VC funds will also have a PPM. In addition to these core materials, VC funds will also have a data room with due diligence materials, such as the model. 

 -  Adeo Ressi
1
1

What is the most common free structure for a fund of funds?

I know the 2 and 20 wouldn't apply here, since you are investing in directly in funds. If 30% of the portfolio goes into Funds, and 70% is direct into companies (mostly coinvests), are you still considered a Fund of Funds?

Top answer:

Fund of Funds fees are typically 1 and 10.  On the strategy you mentioned above, ti sounds like a classic VC Fund. You will not be able to do 70/30 though due to the VC exemption and the complexity with reporting. But it could be 80/20.

 -  Mike Suprovici
0
1

What is a good fund I size for a fund of funds? Does the same 5-10M guidance apply as a standard fund?

What is a good fund I size for a fund of funds?  Does the same $5-10M guidance apply as a standard fund? I

Top answer:

Fund targets should be set based on the GPs ability raise capital, rather then by other external targets. The minimum fund size for a Delaware fund is $2.5m to justify the operational costs. In other domiciles, it's considerably higher d...

1

I'm raising fund 2. Many institutional LPs (including FoFs) will only invest in $50m+ funds. We'd like those investors in this fund. What amount should we start with in our thesis?

Top answer:

I recommend that you don't reverse engineer like this. This is a trap that many emerging managers fall into. The managers that have done this who we have worked with regretted it when they came in severely under-subscribed because they s...

1

Hi, I want to change the name of the fund? how to do that? I don't see the

I want to change the name of the fund? how to do that? I don't see options under profile. 

Top answer:

To change the name of your Firm go to Settings > Firm Settings. To change the name of your Fund go to Settings > Firm Settings > Entity Management.

 -  Travis Giggy
1
1

Are institutional LPs always willing to sign PACTs? Are there any other types of investors not to send it to?

Top answer:

Institutional LPs typically do not sign PACTs. They also rarely participate in Fund 1s and on 1st closings. Most are prevented by charter from investing in emerging managers and typically engage in Fund 2 and beyond. If you're going to a...

1

Do you need to communicate the final closing date of your fundraise?

Top answer:

You should avoid communicating a final closing date until you have enough signed LOIs from LPs to proceed, or your fundraising period is expiring as per the terms of your LPA.

 -  Mike Suprovici
0
1

For emerging fund managers, at what point do you approach your potential anchor investors?

Top answer:

TL'DR - Never. Anchor investors are no longer common for emerging managers, especially, in Fund 1s, and they are becoming obsolete in general. Anchors are a way of the past. In modern fundraising, emerging managers rarely have an anchor,...