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Unlocking the potential of venture capital

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Is a 25% Fund of Funds Proposal with These Terms Typical, Aggressive, or Worthy of a Counteroffer?

We had an interesting fund of funds proposal for 25% of our fund. *Do you know if the proposal is typical or aggressive or have advice for a counter?* This is the offer at a high level: • 40% of commitment allocated to initial investments of our fund. • 60% of commitment allocated to co-investments in subsequent funding rounds within our portfolio ventures as selected by the FoF (we don't receive any carry) • Option for FoF to lead subsequent funding rounds (for individual portfolio companies) as Lead Investor • 1 IC seat (we're okay with it)
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1. Is the maximum number of investors allowed 99 or did it get raised to 250?

1. Is the maximum number of investors allowed 99 or did it get raised to 250?
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How Should We Quantify the Attractiveness of Past Deals for Limited Partners: Exact Valuation or Descriptive Terms?

In the #4 question it's not clear how to quantify how each Past Deal will be attractive to Limited Partners. Should we write a valuation of the future rounds of the Deals in exact numbers or just write 'very attractive' or 'not attractive'?
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How to Cover Legal Expenses for a First Fund Before Closing Without Paying Out of Pocket?

Any insights on covering legal expenses for a first fund prior to closing the fund? Local VC estimates $50-60K for initial legal work all of which are recoupable from post-close admin fees. But are people just paying this out of pocket or what?
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Is There a Database Comparing Newly Formed VC Funds Raised via 506B vs 506C?

is there a database where it shows how many newly formed VC funds raised via 506B VS 506C? my hypothesis is that 80% of those that have successfully closed are raising publicly but data would be better.
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How should I approach the initial conversation with a celebrity LP who reached out via a personal contact?

What should be my strategy for the initial conversation with a celebrity LP who contacted me through a close personal contact?
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What should I do if a potential LP tries to negotiate to lower my carry?

What should I do if a potential LP tries to negotiate to lower my carry?
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Is Pursuing Broker-Dealer Licenses (Series 7, 62, 63, 65, 79, 82) Over 5-10 Years Beneficial for My Career?

Would it be to my benefit to go for broker dealer licenses with respect to securities such as the following? Series 7 62 63 65 79 and 82. This is not something in the next 12 months but to get over the next 5-10 years. What would this enable me to do and is it a pathway worth exploring?
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Can I raise from LPs abroad if my fund is based in the US and I only invest in US-based companies?

Can I raise from LPs abroad if my fund is based in the US and I only invest in US-based companies?
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How are growth opportunities typically structured for VC firms?

How are growth opportunities typically structured for VC firms?
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Is there a venture partner agreement that covers LP fund-raising/closing?

Is there a venture partner agreement that covers LP fund-raising/closing?
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Which documents should be included in the Warehouse folder of the LP data room?

Which documents should be included in the Warehouse folder of the LP data room?
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What tools do you recommend for fund management, specifically CRM and fund management platforms?

What tools do you recommend for fund management, specifically CRM and fund management platforms?
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What are the Pros & Cons of Joining a Larger Fund as an Independent SPV/SPC?

If there’s another fund setting up a 5-7x your size of fund and would invest in your fund but want to set it up as a SPV/SPC so its part of the bigger play yet you’d have all the independence you need to run things etc. what would you see as the pros & cons?
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What Does Pro-Rata Assignment Mean for a Potential LP Investor and What Legal Paperwork is Involved?

A potential LP is interested in investing in the fund (I wasn't soliciting :slightly_smiling_face:). He asked for pro-rata assignments. Not exactly sure what this means. Also what kind of legal paperwork is behind this?
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How Long Are Non-Binding PACTS Effective, Considering No Set Timing?

How long are the PACTS good for? They are non-binding letters of intent and there is no set timing. As with most things ‘time is the enemy of all deals’
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How should I rate someone who wants to invest but lacks liquidity currently?

How should I think about rating someone saying they would like to invest but don't have the liquidity to invest now?
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Are there any drawbacks to accepting LP interest for smaller tickets?

Are there any drawbacks to accepting LP interest for smaller tickets?
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How do we find a comprehensive funding list of other VC funds?

How do we find a comprehensive funding list of other VC funds?
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What Does Acting as a Subadvisor to a Fintech-Specific Common Trust Fund We Sponsor Entail?

What does it mean to act as a subadvisor to a fintech specific common trust fund that we could sponsor?
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Does an Italian HNWI Expat Meet EU Accredited Investor Requirements for a US-Domiciled Malaysia-Focused Fund?

Hoping some of the EU folks can help me with a question. My fund is focused on Malaysia to be domiciled in the US (where most LPs currently are). I've never really looked to EU for LPs but I have an HNWI expat from Italy that is interested. So I am trying to ensure the person meets the Accredited Investor requirements. I assume the relevant standard would be EU standard not the standard in the domicile location. From what I found in EU the person must meet at least two of the following: a. has carried out transactions of significant size on the relevant market at an average frequency of 10 per quarter over the previous four quarters b. has financial portfolio exceeding EUR 500000 c. works or has worked in the financial sector for at least one year The person easily meets the 2nd but is not makes 10 transactions per quarter nor comes from the financial sector. Does someone have other guideline as to who qualifies? Or experience with similar?
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What Are the Limitations and Legal Ramifications for Non-Accredited Investors Raising a Fund in 2022?

When raising a fund what’s the impact of not being an accredited investor? Though I’ve scouted and helped investors- I’ve not invested before but will be soon- 2022. So at this juncture what are the fund limitations and perhaps legal ramifications?
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Is Sharing LP Details Expected During Due Diligence from Limited Partners?

During DD from LPs is it expected that we’ll need to share specific details about our current LPs in the fund? We’ve never had to share this previously. They are asking for Investor Name Type of Entity Total Amount Committed Total Paid In. This includes all soft committed investors. (cc: Kenneth Ballenegger)
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Rolling Fund vs Regular Fund: Which is Better for Raising <$10m with Different Capital Call Timings?

2 LPs have talked about rolling funds… considering one is likely to do capital calls at different points in time has anyone raising <$10m given more thought to rolling fund vs regular fund?
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Is it Common to Disclose Investment Terms and Co-Investors for Warehoused Companies to Prospective LPs?

In discussions with prospective LPs re participation in fund is it common / ok to disclose investment terms for warehoused companies including other co-investors etc?
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Is There a Significant Difference Between Angel Funds and Pre-Seed Funds for Founders and Investment Structures?

From everything I've read so far and the founders I've spoken to there does not seem to be a strict demarcation between an angel fund and a pre-seed fund. Is this something more relevant for LPs than for founders? Is there a difference in the way an investment is structured? Thank you!
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Has Anyone Discussed DAF Structures with LPs for Impact-focused Funds?

Hi all! Has anyone been asked about DAF structures from LPs? For context my fund has an impact lens and I'm looking to find ways to align with LPs who are interested in that above financial returns alone.
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The PACT should be relevant to the country of the GP (Israel)or the country of the LPs(Braizl)?

The PACT should be relevant to the country of the GP (Israel)or the country of the LPs(Braizl)?
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How Can I Warehouse, Liquidate, or SPV $2mm in Bytedance RSUs That Don't Fit My Pre-Seed Fund Thesis?

Question about warehousing/liquidating/SPVing Bytedance RSUs a non-thesis holding that doesn't fit my pre-seed fund thesis I have about $2mm in Bytedance RSUs (assuming an implied valuation of $300B). Can't be sold on secondary because of restrictions but they can be transferred via 'forward contracts' that do something similar. I would like to either add to fund or liquidate some of those holdings in Bytedance (about $1m). What are my options? Should I offer this as an SPV on my own? Is there a way to collateralize for a loan the Bytedance RSUs (no bank will do it for these afaik)? Or do I just hold these?
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I’m raising a $10 million fund. What’s the maximum check size of the deal that I should warehouse?

I’m raising a $10 million fund. What’s the maximum check size of the deal that I should warehouse?
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Can an LP Increase Their Commitment After Signing a PACT or Wiring Initial Capital?

How would it work if an LP wants to up their commitment after they already signed a PACT? or may be after they already wired money for the first capital call?
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Venture Studio

What are some of the advantages to starting a VC Fund connected to a Venture Studio?
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Attribution Letter Options

Coming out of a CVC that invested on a balance sheet basis not a fund basis, what is a good example on getting an attribution letter? Some options I was thinking: • Letter stating that the investments on my deal sheet were led and executed by me • I have some news clips that quote me on some of the investments
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What should I include in my data room for individuals like HNWI?

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What will LPs audit before they commit?

what is a normal process that LPs do due diligence before they commit?
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LP side letter - what should or shouldn't do?

An LP asked me for some 'perks' and I want to formalize it somehow. What should and/or shouldn't I do with such a side letter? Should I actually sign it?
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