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Do you share the fund's current AUM to early LPs when catching up after some time/when asking for LP intros?

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Jan 11, 2024

Do you share the fund's current AUM to early LPs when catching up after some time/when asking for LP intros?  How do you position it so it's a positive and not a negative?  How do you leverage it to get more LP intros?

Top answer:

You should share how much you have closed, if an LP asks. However, unless you have closed at least 50% of the fund, it's sub-optimal to lead with this type of information because it's unclear if you will reach your target. This is also w...

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First, confirm that you and any other Managing Partners or General Partners (Partners) have the capacity to invest up to 1% or more of the Fund Size in cash or possibly in startup equity at cost. Next, confirm that all Partners can work ...

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What is LP Institute?

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Jan 09, 2024

Top answer:

The LP Institute is an 8 week online program built to teach Limited Partners (LPs) the process of investing in top venture capital managers. The program focuses on sourcing, conducting due diligence, and successfully closing on at least ...

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What is a good argument a new/emerging Venture Fund for LPs who don't have experience with VC?

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Jan 09, 2024

I asked DecileBase, but only found very generic answers. It would be useful to have a clear pitch for why a potential LP would want to invest in a venture firm.  How do new and emerging managers perform versus larger funds? How do they perform ve...

Top answer:

We have developed an article for GPs to share with LPs: https://govclab.com/2023/04/26/how-to-invest-in-vc/. That being said, your proposed approach will not work. Sending LPs information about how the emerging managers over-perform othe...

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Top answer:

Feature requests for Decile Hub can be shared in the Decile Base Hub Feedback channel, which can be found here: https://www.decilehub.com/base/40-hub_feedback. Your insights and suggestions are always welcome as they help improve the pla...

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can an LP nominate IC member

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Jan 07, 2024

AI Answer was  While an LP can potentially suggest a member for the Investment Committee (IC), the final decision typically rests with the General Partner or Fund Manager. It's important to ensure that any IC member is trusted, experienced, and a...

Top answer:

Yes. It's not uncommon for large LPs to want to request to be on the IC. That being said, you need to be very careful with who you nominate on the IC because it is making investment decisions for the fund. 

 -  Mike Suprovici
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What are typical expenses (uses and amounts) for the first year of a new $5MM venture fund?

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Jan 04, 2024

If the fund draws 3% management fees in the first year of a $5MM fund, the firm has $150k to spend on its functions and salary.  What are the business expenses and how much should we expect to pay for these?

Top answer:

Some business expenses that are typically paid from management fees include: Laptops & Equipment, Salaries, LP Events, Software, Due Diligence and Travel. Please review this article on fund expenses: https://govclab.com/2022/11/07/mana...

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compensation for a venture partner

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Community Member
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Dec 31, 2023

Top answer:

VC Lab has developed a free Venture Share Agreement that is designed to be used by venture capital firms and Venture Partners alike to quickly start working together. The template agreement is designed to specify the duties and compensat...

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Top answer:

The main metrics track record metrics are IRR, TVPI & DPI. However there are others that you can review in this question. In addition, you may also find this article helpful. 

 -  Mike Suprovici
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It's really difficult to build an enduring VC firm on AngelList. Consider getting off AL. If you're going to setup a fund in BVI, all entities need to be in BVI. It's super expensive and inefficient for you to have entities in multiple d...

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How to determine markup valuation as an equity investment takes on token investors?

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Dec 28, 2023

We have a portco that we invested in as an equity investor when they were an online experience platform. That business turned out not to be venture scalable. They team pivoted and raised another equity round... then they pivoted again into a block...

Top answer:

TL'DR - leave your valuation policy in-tact and manage these LP communications at the newsletter/report summary level rather then at the financial level. Each quarterly/yearly report where you include financial statements should be accom...

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Valuation increase after PoC

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Dec 28, 2023

Hi, is is possible to quantify the average valuation increase of a seed-stage company after performing successful PoC?

Top answer:

Valuation increases are determined by the fund's valuation policy. In venture capital, the valuation of the company is typically set by priced equity round. Other inputs don't factor in unless the fund is writing down a company. 

 -  Mike Suprovici
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Underrepresented represents the demographics of the founder (gender, ethnicity, economic background, underserved region for example.) Overlooked relates more to some investors' bias or the founder's lack of access or influence. This cou...

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Top answer:

Fund operations providers such as Decile Partners generate full financials for Limited Partners including: • Statement of Assets, Liabilities, and Investors' Capital • Income Statement  • Schedule of Investments • Statement of Changes in...

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Should I mention my accelerator program in my thesis?

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Community Member
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Dec 24, 2023

We run a co-founder matching program which is one of our main sources of dealflow. Should I find a way to insert it in my thesis? 

Top answer:

If your fund is optimized to fund companies from your accelerator, then it could make sense to make it the focal point of your thesis. If you do mention the accelerator, provide metrics for how succesful alumni have become. This way LPs ...

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How do I set my target fund size?

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Community Member
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Dec 23, 2023

Top answer:

The target fund size should be thought of as the minimal viable fund size to operate. Most new and emerging mangers set fund size targets that are too large, resulting in them under-subscribing and ensuring an extremely difficult time ra...

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Have you found any helpful resources to model your fund performance?

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Community Member
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Dec 23, 2023

I have been using Taylor Davidson's templates but wondering if there are any resources or approaches you all have used.

Top answer:

You can find more resources at this on the Foresight website here: https://foresight.is/fund-resources

 -  Mike Suprovici
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What are the costs to manage a fund in dollars?

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Dec 22, 2023

Top answer:

A fund has costs that are both one-time and recurring. A fund incurs one-time organizational expenses in the first year, usually in the form of legal, accounting, and state compliance expenses. Here are the vendors that typically make up...