All Questions

In venture capital terminology, Total Addressable Market (TAM) is an estimate of the potential revenue a company (or its product) could theoretically generate if it somehow completely captured the market (100%). It is a metric used to es...

In venture capital terminology, Total Addressable Market (TAM) is an estimate of the potential revenue a company (or its product) could theoretically generate if it somehow completely captured the market (100%). It is a metric used to essentially try to determine the size of any potential business opportunity - however note there are several approaches, so it's important to understand how a TAM is calculated when evaluating. 

Broadly speaking...it depends on the type of round, leverage of the lead investor, prior rounds, etc.  True lead investors in a preferred stock financing may be able to command certain advantageous terms - but there are too many variabl...

Broadly speaking...it depends on the type of round, leverage of the lead investor, prior rounds, etc.  True lead investors in a preferred stock financing may be able to command certain advantageous terms - but there are too many variables involved to make a sweeping statement.

None of these have one-size-fits-all kinds of answers - these are all complex, so here is some brief, high-level info. There are books such as Venture Deals (by Brad Feldt) and other handbooks readily available online on these topics.  •...

None of these have one-size-fits-all kinds of answers - these are all complex, so here is some brief, high-level info. There are books such as Venture Deals (by Brad Feldt) and other handbooks readily available online on these topics.  • While typically startups start with a nice round number of 10M shares of common stock authorized, with a majority going to the founders, it will depend on the number of founders, their dynamics, experience, intellectual property involved, etc.  • At formation, startups often set up a stock option pool size between 1M and 2M shares of common stock reserved for issuance. This will depend on many factors though, including key employees, contractors, business model, etc. • While a startup can set a valuation cap on a SAFE, it generally does not directly determine what amount a SAFE converts at - this will depend on the amount of money being raised during a priced round, the exact (and custom) terms, etc. YCombinator has a webinar regarding this topic.  • Please see here regarding raising and post priced round dilution: https://www.decilehub.com/base/1-general_questions/21536-what-is-the-optimal-ownership-percentage-for-founders-post-series-a

Limited Partners generally should not have any particular expectations around a Fund's portfolio startups generating profits - this is not the point of venture capital investing.   Limited Partners typically only receive distributions w...

Limited Partners generally should not have any particular expectations around a Fund's portfolio startups generating profits - this is not the point of venture capital investing.   Limited Partners typically only receive distributions when one of the Fund's portfolio startups has an exit (gets acquired in some fashion most commonly, or goes IPO). Limited Partners invest and think on longer time scales - a Fund is often a ten year vehicle (or more). 

Generally speaking, Limited Partners do not hire auditors. If a Fund, due to its own decision, or at the behest of its Limited Partners, decides to be audited, the auditor will be a third-party one by definition. An internal audit, while...

Generally speaking, Limited Partners do not hire auditors. If a Fund, due to its own decision, or at the behest of its Limited Partners, decides to be audited, the auditor will be a third-party one by definition. An internal audit, while a good idea periodically, would not typically count as an actual third-party audit. 

The minimum closing requirement to launch a Start Fund is $250,000

The minimum closing requirement to launch a Start Fund is $250,000

The projected gross MOIC is based on assumptions about the fund's investment strategy, expected exit valuations, and market conditions. It assumes a certain level of success in portfolio companies and their ability to achieve exits at fa...

The projected gross MOIC is based on assumptions about the fund's investment strategy, expected exit valuations, and market conditions. It assumes a certain level of success in portfolio companies and their ability to achieve exits at favorable multiples. The fund's performance is sensitive to variations in this multiple, as changes in exit valuations, market conditions, or the success rate of investments can significantly impact the realized MOIC. Modeling different scenarios (low, medium, high) can help assess this sensitivity.

Currently - no. 

Currently - no.