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with tagpacts
2
1

I'm having lots of conversations to sign PACTs right now (early in VC Labs), what are best practices to ensure the LPs close when it's time? (or at least up the percentage after the pact is signed)

Obviously if someone says yes to a non-binding agreement it's no sure thing of actual closing (i understand the series of yes mentality and agree it's a good strategy - so i'm in!) What are best practices to have them come through when it's time to close (to up my % of closes from PACT?) -->  What's the time frame expected or typical for LPA and capital call (to manage their expectations and get that in the conversation)? [hub reports 12-18 months - but we've discussed 6 months in vc labs so would like clarification .. i know it's not black and white though and is how fast can i close/should i close and what can we do/what do you expect of us? I'm looking to close this by the end of the year! is that realistic? well idc i'm doing it anyway we have a world to impact with good ethical investing - also looking for what i may be missing and should watch out for to hit my goal - some of the unknown unknowns!!] Thanks!

Top answer:

You should set the default percentage of the PACT at 75% if you're in a developed market and to 50% for emerging markets. The 'best practice' is to increase fundraising momentum. If you have momentum and an increasing number of investor...

1

How do we verify someone is an accredited investor before we talk to the? Is it illegal to talk to them about joining the fund if they are not accredited? (thinking for people with high salaries specific that we think may qualify but aren't sure of)

Looking for when to broach the topic of accreditation and how to bring it up in the conversation, this is for the closing of the PACT conversation.

Top answer:

As a manager, you need to get to know every potential limited partner before you pitch them, including doing research to understand if they are accredited. At the ned of the day, you need to use your best judgement. This is governed by g...