All Questions

161

What is the Best Practice Due Diligence Process Involving Reference Checks, Tech Stack Verification, and Customer Interviews?

Asked by:

Community Member

Jan 12, 2024

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?

General VC Questions

Would LPs Find Credibility in Citing Combined Track Records of Myself and Venture Partners?

Asked by:

Community Member

Jan 12, 2024

Would LPs consider it credible if the track record I cite includes the combined investments markups and exits of me AND of my Venture Partners? Thus far I've only included deals I was personally involved in (32 investments 20 companies individual company markups of 3X 5X and 10X). These numbers would be bolstered if I add my VPs' investments including a $1B deep tech exit. But credibility (and surviving LP diligence) is important to me.

Economics

What are your thoughts on VC advisory boards for fundraising and their tangible benefits, such as quarterly check-ins and LP introductions, in exchange for a small GP percentage?

Asked by:

Community Member

Jan 12, 2024

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

Decile

Are there any drawbacks to accepting LP interest for smaller tickets?

Asked by:

Community Member

Jan 12, 2024

Are there any drawbacks to accepting LP interest for smaller tickets?

Fundraising

How can we encourage potential LPs to join the first close instead of adopting a wait-and-see approach?

Asked by:

VC Lab Assistant

Jan 12, 2024

What are some ways to incentivize potential LPs to come in to the first close instead of taking a wait-and-see approach?

Decile

How do we find a comprehensive funding list of other VC funds?

Asked by:

Community Member

Jan 12, 2024

How do we find a comprehensive funding list of other VC funds?

Decile

What Does Acting as a Subadvisor to a Fintech-Specific Common Trust Fund We Sponsor Entail?

Asked by:

Community Member

Jan 12, 2024

What does it mean to act as a subadvisor to a fintech specific common trust fund that we could sponsor?

Decile

Does an Italian HNWI Expat Meet EU Accredited Investor Requirements for a US-Domiciled Malaysia-Focused Fund?

Asked by:

Community Member

Jan 12, 2024

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?

Decile

What Are the Limitations and Legal Ramifications for Non-Accredited Investors Raising a Fund in 2022?

Asked by:

Community Member

Jan 12, 2024

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?

Decile

Is Sharing LP Details Expected During Due Diligence from Limited Partners?

Asked by:

Community Member

Jan 12, 2024

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)

Test Channel

Can We Mention Our Prominent LP's Name to Attract More Investors in This Unique Situation?

Asked by:

Community Member

Jan 12, 2024

We got one new LP that is the most respected name in our niche space. Multiple potential LPs have asked if he endorses us. He would allow us to use his name when fundraising with others. Is that an edge case where we can mention the LP's name to others?

Decile

Rolling Fund vs Regular Fund: Which is Better for Raising <$10m with Different Capital Call Timings?

Asked by:

Community Member

Jan 12, 2024

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?

Test Channel

Should We Provide a Local Investor with Delaware Fund Structure and Document Details for Review?

Asked by:

Community Member

Jan 12, 2024

One of our prospective investor want to know about the domicile jurisdiction fund structure and review the LPA & other agreements before he sign the PACT he is local. shall we provide the Delaware structure and documents?

Test Channel

Do You Recommend Attending Fundraising-Focused Meetups for Building a Network of Potential LPs?

Asked by:

Community Member

Jan 12, 2024

While building our network of potential LPs do you recommend meetups that seem to be designed for fundraising?

Decile

Is it Common to Disclose Investment Terms and Co-Investors for Warehoused Companies to Prospective LPs?

Asked by:

Community Member

Jan 12, 2024

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?

Fundraising

Is It Suitable to Ask LPs About Their Investment Focus and First-Time Fund Involvement?

Asked by:

Community Member

Jan 12, 2024

Is it appropriate - as a conversation starter e.g. at a conference in 1:1 conversation - to ask an LP (Corporate Corporate VC HNWI or Family office) what their investment focus is and if they only make direct investments or also invest in first time funds (without speaking about the fund thesis to avoid public solicitation)? If they ask us we can then lead the conversation over to what we work on?

Test Channel

What are the basics of LP term sheets and investor qualifications for first-time fundraisers?

Asked by:

Community Member

Jan 12, 2024

I'm a first time fundraiser and I have some super basic questions: Is there a standard or basic term sheet for a LP? Is anyone who wants to invest considered an LP?

Economics

Do Universities Contributing to Org Expenses Without Being LPs Still Need to Sign a Pact?

Asked by:

Community Member

Jan 12, 2024

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?

Economics

Do Recent Angel Deals Matter to LPs Despite Limited Traction Visibility and Do Deal Size or Number Matter?

Asked by:

Community Member

Jan 12, 2024

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?

Fundraising

What is the Best Approach for Sharing Fund Slidedeck with Potential Referrals from Family Offices?

Asked by:

Community Member

Jan 12, 2024

Had a call yesterday with a connector who offered to make referrals to a number of family offices he is currently working with. They are likely to be good quality/well targeted referrals. He asked me to send the fund slidedeck over so he could forward it to them. What should I do here? Just send the two page summary and hold the deck back. Or send the whole deck? Or a trimmed back version of it? It will be going to quite sophisticated potential LP's so I think maybe not a problem to send the whole thing? I can gate them with access to more detailed information (fund model deal memos data room etc) if things progress.