Economics

What's the general opinion on listing portfolio companies on the website while still raising?

Can I talk to startups about a potential investment with the fund ticket size? Discuss their interest?

What materials should be sent to a potential LP via email aside from the investment deck? Please answer

Hi! Is it better to have a higher volume of deals or a higher percentage of ownership per deal. I'm working on portfolio construction and deciding on reserve capital percentage and how many deals the fund will do. What's more important to LPs?

Hello thinking about possible LPs I know to come up with the right fund size what is the smallest investment that you would recommend accepting? There would be a trade-off between amount raised and having too many LPs with small investments e.g. 25K minimum vs 100K minimum. Mike Adeo

For a Latinxs creating a fund is there an ideal structure if most LPs will be from Latin America? What's the legal structure to create a fund that you recommend?

What are the downsides of raising under 506c (in public)?

Are there any resources that could help me with educating potential LPs about venture capital startups risk investment mechanics standard documents etc. in a super young ecosystem like Paraguay?

Where can someone apply to be a VP at an Auto-tech focused fund?

We’re working on our second close and a fund-of-funds is in the process of conducting due diligence on us. Is it ok to include the signed LPs subscription agreements in our data room or is that considered disclosure of LPs confidential info?

Can anyone share light on a best practice due diligence process and how they go about doing it? The best ones I've seen involve reference checks tech stack verification customer interviews and a million other things. Perhaps a checklist one can use internally or a trusted third party?

What’s everyone thoughts to VC advisory boards: • How useful is it for fundraising? • What about tangible benefits of quarterly check-ins for advice + LP introductions in exchange for some small percent of the GP (like 0.25%) cc: Kenneth Ballenegger

If we have a university want to put money towards the fund but they can't be an LP they just want to put money towards org expenses do they still sign a pact?

Would showing angel deals done recently be helpful as part of a track record to share with LPs or not really since no traction will be visible in such a short span of time? And if yes would they also care about number or size of such deals?

Should you send the PACT first and require it be signed before sending a deck? I know this has been answered 100 times over but I have conflicting information in my notes from different webinars we’ve seen. Is it step 1) meeting 2) get pact signed 3) send deck? Or can step 2 & 3 just be combined.

regarding this _'(Track Record) Examine your Track Record of Past Deals. First identify the top five Past Deals that you have either invested in or had a role in writing the name of the company and a few words describing the business. Next think back to exactly how you initially discovered each opportunity and write a sentence that describes how you sourced each Past Deal. Then quantify how each Past Deal will be attractive to Limited Partners by looking at how the company grew how the valuation increased or how much money was generated by the exit and write a sentence about how value was created at each Past Deal. Lastly reflect on how your actions increased the value created at each Past Deal and write a sentence on your Value Add for each business.'_ - if most of your deals have been through angellist syndicates which contain confidentiality rules that mean you can't name the businesses you've invested in through them plus one deal that you can name that was brought to you as part of an influencer SPV (e.g. given equity) how should you handle this?

There was some discussion on hurdle rates recently but what about net returns? For LPs that do not insist on hurdle rates (or even if they do) is it common to sign up to a net return multiple?

What kind of discounts make sense for key early LPs? For example if I have a good friend and multi-year partner who wants to come in and can put in 3-5% of the fund and he asks for a discount to go at higher end of that. My fees are typical 2/20. Should I offer management fee discount or carry discount? How much is reasonable?

How much ROI I suppose to promise or offer my LPs? As best practices?

Hi everyone! I hope you’re doing well! I had two questions: 1. As a first time fund manager what do you think of me starting my fund under another funds wings? Essentially starting a micro VC under someone else’s current VC to share the resources with them as well and save on costs. 2. Would Angel investors be potential LPs? What is the best way to approach an LP? Directly ask them if they would invest or warm them up over a period of time? Thank you so much!

Does FounderInstitute have a forum or email message board that we're allowed to browse/ask questions in for its alumni entrepreneurs? I have a general entrepreneurship question (about what the best software is for SaaS companies who want financial dashboard/charting that integrates with QuickBooks) and figured that would be a great place to look.

What does a Fund Prospectus include?

Who makes the capital commitment in a fund where the investment decisions are made by an algorithm owned by a separate company?

What happens if you give each LP different investment terms?

Which track record metrics being reported to LPs would require attribution letter and which metrics do not?