All Questions

Anything specific to the details of the call (investments, fund expenses, management fees) that details why you are making the capital call.

Anything specific to the details of the call (investments, fund expenses, management fees) that details why you are making the capital call.

The Liability section in the balance sheet of a fund’s account can include various components such as: - Management Fee Payable - Legal formation fees - State domicile filing fees - Blue Sky Fees - Form ADV Filing - Annual Tax Preparati...

The Liability section in the balance sheet of a fund’s account can include various components such as: - Management Fee Payable - Legal formation fees - State domicile filing fees - Blue Sky Fees - Form ADV Filing - Annual Tax Preparation - CPA/Accountant fees for bookkeeping and financial statement preparation - Legal Operations - KYC/AML and other compliance expenses - Treasury (banking) fees These components represent the various obligations and expenses the fund is responsible for.

under back office > Fund Overview Click "Generate a Report" This pops up a modal with what reports to generate as well as a list of all reports that have been generated.  This list of all generated reports is where you can download usi...

under back office > Fund Overview Click "Generate a Report" This pops up a modal with what reports to generate as well as a list of all reports that have been generated.  This list of all generated reports is where you can download using the download icon to the right of the line item

It's calculated by taking the difference between the FMV and Cost of the investment.

It's calculated by taking the difference between the FMV and Cost of the investment.

The best practice is to offer that pro-rata to fund 1 LPs first via SPVs. Next, bring the investment to your LPAC to clear any conflicts. Then, make the investment. 

The best practice is to offer that pro-rata to fund 1 LPs first via SPVs. Next, bring the investment to your LPAC to clear any conflicts. Then, make the investment. 

There is a separate line item for the GP commit labelled Capital Contributions - General Partners.

There is a separate line item for the GP commit labelled Capital Contributions - General Partners.

Most Favorite Nation (MFN) is a negotiated provision in SAFE or convertible investments, which provides the investor with the best terms for that group of investments. This is sometimes used in early investments where other terms (valuat...

Most Favorite Nation (MFN) is a negotiated provision in SAFE or convertible investments, which provides the investor with the best terms for that group of investments. This is sometimes used in early investments where other terms (valuation cap or discount) are not yet decided, and the investor and company want to execute the investment quickly. Some MFN provisions require the investor be informed of new investments with better terms, then specifically electing to take the new terms. Some MFN provisions apply on conversion, where the actual conversion to shares is determined based on the MFN and any other terms.

The dataset in the system is incorrect, which is incorrectly reflecting investments and their values.

The dataset in the system is incorrect, which is incorrectly reflecting investments and their values.

The best practices for an Employee Stock Ownership Plan (ESOP) include ensuring that founders and employees of a startup have vesting schedules to secure investment from reputable VCs. This helps align the interests of the employees with...

The best practices for an Employee Stock Ownership Plan (ESOP) include ensuring that founders and employees of a startup have vesting schedules to secure investment from reputable VCs. This helps align the interests of the employees with the long-term success of the company and provides a structured approach to equity distribution.

In Hub on the left nav, select Back Office, Investments then click Update Valuation next to the portfolio company. Now click Add Funding Round and add the relevant information for the new round, click Save. Now click Funding Rounds and s...

In Hub on the left nav, select Back Office, Investments then click Update Valuation next to the portfolio company. Now click Add Funding Round and add the relevant information for the new round, click Save. Now click Funding Rounds and select > for the applicable new Funding Round (the one you just added) , attach documents (like the priced round agreements and conversion spreadsheet)and links to the new funding round, then click the Notes tab and add relevant notes, click Save.

Within the Fund Overview page, you can generate your annual report.

Within the Fund Overview page, you can generate your annual report.

Consider very carefully the following factors while deciding on the allocation of shares between two owners and/or managing partners: • overall contribution; • value (expertise, network, etc.) It is critical to have a clear understandin...

Consider very carefully the following factors while deciding on the allocation of shares between two owners and/or managing partners: • overall contribution; • value (expertise, network, etc.) It is critical to have a clear understanding, as this is a business relationship that must last 10 years minimum, if not 15 or more. It is also important to think carefully about allocating the shares equally between the 2 owners/managing partners. This can create a deadlock situation (depending on certain majority thresholds in the Management Company's operating agreement) where decisions cannot be made quickly and in an efficient manner. It is common for one managing partner to hold a very slight majority in order to facilitate ease of decision making. For those working with Decile Partners, carefully review the Majority of Interests and the Majority of Managers thresholds in the Alignment Agreement as well. 

The separation between the Management Company and the General Partner entity in a Venture Capital firm/fund structure allows for scalability and flexibility. The Management Company owns the brand and intellectual property, and is where t...

The separation between the Management Company and the General Partner entity in a Venture Capital firm/fund structure allows for scalability and flexibility. The Management Company owns the brand and intellectual property, and is where the firm's owners and/or managing partners are located. The General Partner entity, which is majority owned by the Management Company, is where partners managing only one specific fund sit. This structure allows for the addition of new funds under the same firm, facilitating growth and scalability. It also allows for the inclusion of partners or Venture Partners in one specific fund without requiring them to be part of the Management Company. There are other Venture Capital firm structures that use one entity to fulfill both Management Company and General Partner functions, or keep them both but have them separated instead of stacked vertically via ownership. This depends on the particular circumstances of the setup, but will generally have much more complex agreements.   We recommend simplicity and scalability as the default principle whenever possible. 

If a fund manager passes away or is incapacitated, the fund's Limited Partner Agreement (LPA) typically includes language or provisions addressing this event.  For example, in the Cornerstone LPA published by Decile Group, such an event...

If a fund manager passes away or is incapacitated, the fund's Limited Partner Agreement (LPA) typically includes language or provisions addressing this event.  For example, in the Cornerstone LPA published by Decile Group, such an event happening to a "Key Individual" will trigger the fund to enter 'Limited Operations' mode. In this mode, the fund's activities become restricted, it is up to the General Partner entity and the Limited Partners to negotiate to determine what happens next.  The specifics of how this situation is handled can vary depending on the terms set out in the LPA - be sure to read carefully and consult experienced fund counsel for questions regarding a specific set of circumstances. 

If you don't issue all the shares in your Share Pool to Venture Partners, those shares simply remain unallocated. They can be issued at a later date to new Venture Partners or other team members if needed. It's important to note that un...

If you don't issue all the shares in your Share Pool to Venture Partners, those shares simply remain unallocated. They can be issued at a later date to new Venture Partners or other team members if needed. It's important to note that unissued shares from the Share Pool are not considered when calculating distributions or voting - such shares are not issued and/or outstanding for these purposes. Unissued shares are also not automatically re-allocated to the General Partner entity.