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What is the Monte Carlo Simulation and how does it help to model the probability of success during due diligence?

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Mar 21, 2024

I often see various Excel-generated models being included in data rooms.  These models are referred to as a "sensitivity analysis" of various sorts and typically display probability outputs.  I do not understand the significance and how the models...

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Fund managers often show various scenarios for how the fund may perform relative to the investment strategy. As an LP, it’s critical to understand the assumptions behind those projections, because models are rarely 100% accurate. For exa...

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Is it common that funds charge the startup investee a fee to cover for your due diligence costs?

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May 03, 2023

Is it common that funds charge the startup investee a fee to cover for your due diligence costs?

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No. VCs will commonly charge portfolio companies for legal fees associated with a deal up to a cap in the term sheet, but it is uncommon to charge for due diligence fees, such as a software audit. These fees can be charged to Limited Par...

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