Legal2
28 PostsUnlocking the potential of venture capital
Hi all I've a question I'm really hoping someone can help me with. I'm an international person in the US (singaporean) previously on a student F1 visa. I recently took a consulting gig to get a work visa and am now on H1B. What are the options to be able to set up the fund and work under the fund as my full time job? My understanding is that neither H1B nor E2 visa apply to a fund. Is this true? If so what are the alternative options?
Is there a specific investment license for GPs? Something like the accredited investor?
Is there a specific investment license for GPs? Something like the accredited investor?
What additional background checks do reputable FoFs conduct during DD besides data room analysis?
I'm being DD'ed by a reputable yet discreet FoF which got a strong reference check with one of my board advisors. What kind of background checks do FoFs typically conduct as DD besides looking at the data room?
How much time should be allocated to deal sourcing/investing vs. fully closing the fund after a first close?
After a first close, how much time should be split between deal sourcing/investing vs. fully closing the rest of the fund?
How do I handle LPs asking who else has invested in my fund without revealing names?
How do I handle LPs asking who else has invested in my fund without revealing names?
What Motivates Legacy VC Firms to Publicly Support New Funds Without Shared Carry?
I've seen new funds getting flagship investment from a general partner at a prominent established fund and round out a raise with this credibility cosign. I'm told there's no carry being shared. Why would a legacy VC firm willingly permit a new fund to broadcast their being an LP as prominently as they do go on their podcast & elevate this new fund? Downstream deal flow opportunities?
Is it good practice to have an FAQ in the LP data room?
Is it good practice to have an FAQ in the LP data room?
How does VC fund raising work if we don't reach our target?
How does VC fund raising work if we don't reach our target?
Is it Necessary to Establish LP, GP, and ManCo Simultaneously or Can I Register a DE LLC for ManCo First?
is there a reason to establish all 3 entities (LP GP and ManCo) at once and at the first close or I can register a DE LLC for ManCo now and start marketing the brand and the mission without talking about the fund?
What are your thoughts on co-investing with institutional LPs to build credibility and relationships for emerging managers?
Regarding co-investment rights as discussed on the AMA agree re co-investment in follow-on is ideal. What are you thoughts on co-investing with institutional LPs (not participating in fund 1) as a way of 1) building our credibility in the market as emerging manager and 2) building relationship with that LP for subsequent funds? In this specific case we have a state insurer (65B fund biggest healthcare investor in the country) that are interested such a relationship as a start their check size is 2-50m for direct so we are looking at the lower end ideally with us leading. We are thinking ideal scenario would be to announce first close and first investment with marquee names alongside us. Appreciate your thoughts on this.
What are the Pros, Cons, and Considerations for Involving Angel Syndicates as LPs in Your Investment?
Looking for guidelines/best practices with regards to angel syndicates- what are the pros/cons of having one or more LP's that are angel syndicates? -are there special terms to consider? -pitfalls to avoid?
Do you have a PACT template for Europe?
Do you have a PACT template for Europe?
What is the Average Ticket Size and Conversion Rate for a Fund with HNWI LP Base from Pitch to Investment?
What would be the average ticket size and conversion rate from pitch to investment for a fund with a HNWI LP base?
Does a Deal Count in Our Track Record if Invested Under a Friend's Name?
Does a deal still belong to our track record if we invest in a deal but it is under a friend's name?
Is it appropriate to directly ask strangers about investing in our fund, or should we be more subtle?
Hi all we are trying to reach out to potential LPs but our personal network is limited to connectors. If we were to consider reaching out to strangers from outside our network can we be direct and ask them if they are interested in investing in our fund? Or do we have to phrase it as “Are you interested to find out more?”
Have you had experience with Angel List rolling funds? What are the pros and cons?
Have you had experience with AngelList rolling funds? What are the pros and cons?
Should I Invest 100K (10%) in My First €1M Close Instead of Standard 1/2% GP Commitment for More Skin in the Game?
Should I put as much as an LP (100K) directly in my first close of €1M (20% of target final close of €5M) instead of the standard 1/2% GP commitment (20k on 1M) because if I fail to raise beyond my 1st close of €1M I will not have in his view enough skin in the game?
How to Showcase Venture Partner Track Records with Confidential Deals in Data Rooms?
Any tips for A. Positioning venture partner track records in data rooms and (relatedly) B. Articulating track records that include confidential deals? (I have a venture partner who does technical dev for a lot of well-known agtech co's but that work is largely confidential)
What do you think of the response from an LP who declined to participate in the fund?
What do you think of the response from an LP who declined to participate in the fund?
Is Investing in a Management Company Worth It? Pros, Cons, and How It Works
Steve Bennett mentioned investing in a management company. Is this a thing? How does it work and what are the pros and cons? I know that some friends of mine would be potentially interested I wonder if I should offer them that
What is the purpose of the Fund Overview? Who will we eventually send this document too? Thanks!
What is the purpose of the Fund Overview? Who will we eventually send this document too? Thanks!
Is It Possible to Accept Shares of a Company Fitting the Fund Thesis as Part of an LP Commitment?
is it at all possible / reasonable to take part of LP commitment in form of shares of a company that fits the fund thesis?
What is NVCA
What is NVCA
What LP archetypes are typically harder to close?
What LP archetypes are typically harder to close?
How can I incentivize investors to invest early in my fund rather than waiting for the first close?
Some investors may say they will invest after the first close. How can I incentivize investors to invest early in my fund instead of waiting until after the first close?
What should we do with LPs who have signed a PACT with their name, but have now told us they want to use an LLC for the investment?
Do we pre-fill the LPA with the LLC name or is it easy for them to do it after we send the LPA?”
Investment track record
If I can't use the entire fund's IRR without the attribution letter to highlight my investment track record, what can I use to demonstrate metrics, secret sauce, etc.?