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General VC Questions

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Ask anything about venture capital, and there will likely be an answer. Sometime there is no answer, and you may need to consult a professional. The training data is growing every day, which will help the system answer even more questions in the future.
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Hub configured to allow 500 per day has not refreshed

Hi again @Woody Butler , I tried to sent another batch of but I received an error since yesterday assuming that I exceeded to 500 emails per day but as I tried to sent today, it wont go through. and I have this error below: [image.png]
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I noticed some of tags in the entries are missing. Is there a way to restore it?

As I checked the entry list. some of the tags I made disappeared in the funnel. Is there a way to restore it? See the image below for references [image.png]
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What are the steps in the process for changing my distribution waterfall, with Decile Group as my fund admin?

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Do I need to let my fund admin (Decile Group) know if I am asking my LPAC to vote on a matter?

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What is a Good Standing certificate and why would it be requested/what would it be used for?

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Can I warehouse an investment for start fund?

Can I warehouse an investment for start fund? If it is a past deal I have made, can I bring it into my start fund. 
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What key metrics should I prioritize when reviewing annual financial reports?

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What is the J Curve in VC?

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Are there any missing values or figures intentionally omitted for confidentiality in the Fund report?

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What Happens to Capital Call Money Before It’s Invested?

How is the money collected from a capital call treated before it is invested into startups? Does it accrue interest in a bank? What restrictions are imposed on that money - eg. can it be invested in crypto while the fund identifies the right startup to invest in?
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What all is included in the expenses portion of the income statement?

Could you please share the components of the expense report:  • What all is included in the expenses portion of the income statement? Is management fees and carry considered an expense, or a distribution? 
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What is the difference between target recycling based on committed capital versus management fees positives and negatives?

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Why does changing the Average Hold Period for different exit types (write-off, small, medium, large) produce inconsistent results?

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How to calculate Forecasted Target Recycling %?

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Why is the initial recycling amount set to 6 years or less from the time of exit? What happens if the recycling threshold changes?

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Can the early LPs pull out in certain circumstances where the funds cannot hit their target?

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How to turn from Inactive LP status into an active one?

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What would be the best way to estimate that probability of investment of the prospect?

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Q1. How are impact indicators reported on - e.g. in the case of Art.9 funds in fund accounting?

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Is there a way to extract data on valuations for similar companies - e.g. similar to how Crunchbase works?

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Q2. What is the process to enter information for the capital call (e.g. the amount and then the percentage?)

I was not able to proceed as the amount to be called could not be updated.
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Q2. What is the process to enter information for the capital call (e.g. the amount and then the percentage?)

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Q1. How do we set the overall commitments for the fund (e.g. 10 million)

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What are the controls for automated cap table updates?

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Does the Statement of Changes in Investors’ Capital specifically indicate the current available capital, or is it strictly a historical summary of changes over the reporting period?

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Would personal travel costs be able to be listed as an expense if it served the purpose of doing work for the fund?

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In the context of a venture capital fund’s financial statements, which specific types of transactions or earnings are typically categorized under “Other Income (Loss)”?

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What are the specific components of "Total Income" and "Total Expenses" in the annual report?

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Is there more information on how the "Total Investors' Capital" is calculated and what it comprises in the annual report?

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What is a Total Addressable Market (TAM)?

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Can LPs sell shares in lieu of capital calls?

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On average, when does an LP expect a startup to generate profits?

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Are annual reports audited internally or do LPs hire a third party?

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What is the minimum amount I can close in a Start Fund?

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How do firms reconcile discrepancies between internal valuations methods?

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Sample calculation of a SAFE conversion using valuation cap?

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Why aren't my deal memos added to the investment section?

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What is "other income loss" in the annual statements?

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Are recycled provisions generally only used for new investments? Or also for follow-on investments?

The exact allocation depends on the Limited Partnership Agreement (LPA) of course, but is there one of the two options that occurs most often?
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Is a 25% fund recycling target rate realistic?

Is a 25% fund recycling target rate realistic? Seems too optimistic even for a USD 25m fund. According to Perplexity. Ai A 25% fund recycling target rate is generally considered ambitious but potentially achievable for a venture capital fund, including a $25 million fund. However, it's important to note that this target may be optimistic and challenging to reach consistently[5][8]. Recycling in venture capital refers to reinvesting proceeds from early exits back into the fund instead of distributing them to limited partners (LPs). This practice can help offset management fees and potentially boost overall returns[5][8]. For a $25 million fund: 1. A 25% recycling rate would mean reinvesting about $6.25 million. 2. This level of recycling requires multiple successful early exits. 3. The timing of these exits is crucial, as they need to occur early enough in the fund's life to allow for reinvestment[8]. Challenges in achieving a 25% recycling rate: 1. Seed-stage investments typically take 7-10 years or more to exit[8]. 2. Finding suitable reinvestment opportunities that maintain high return potential. 3. Balancing recycling with the need to provide returns to LPs. While some funds have achieved recycling rates of 20% or higher, it's not common across the industry. A more typical recycling rate might be in the 10-20% range, depending on the fund's strategy and success[5]. In conclusion, while a 25% recycling target is potentially achievable, it may indeed be optimistic for most funds, including a $25 million fund. Fund managers should carefully consider their strategy and market conditions when setting recycling targets[5][8]. Sources [1] Finding the Right Targets for Recycling Rates Remains an Elusive ... https://www.waste360.com/waste-recycling/finding-the-right-targets-for-recycling-rates-remains-an-elusive-goal [2] Fund Recycling Moves the Needle for Both LPs and GPs. Here's How https://sapphireventures.com/blog/fund-recycling-moves-the-needle-for-both-lps-and-gps-heres-how/ [3] Is a 25% annual return realistic? : r/investing - Reddit https://www.reddit.com/r/investing/comments/1be2f4p/is_a_25_annual_return_realistic/ [4] Lawmakers greenlight statewide recycling program funded by ... https://www.denver7.com/news/environment/lawmakers-green-light-statewide-recycling-program-funded-by-packaging-producers [5] Venture Capital Fund Recycling | AngelList Education Center https://www.angellist.com/learn/recycling [6] [PDF] Resource Recovery Implementation Program - City of Houston https://www.houstontx.gov/solidwaste/RRIC/RRIC-Final-Report-Phase-1.pdf [7] How To Set Recycling Targets That Actually Work - LinkedIn https://www.linkedin.com/pulse/how-set-recycling-targets-actually-work-tomra-jkzff [8] Recycling: The challenge and the opportunity for a Seed stage VC https://informationarbitrage.com/post/151395558860/recycling-the-challenge-and-the-opportunity-for-a
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for early stage investment thesis, can I include series B/C/D investments?

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Does Decile Hub automatically update the reports with changes to portfolio valuation or capital activity?

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When should you expand the option pool — at each round or only when hiring?

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What happens if I adjust the “Fund Duration (Management Fees time period)” to more than 12 quarters — will that reduce Net IRR due to higher fees over time?

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how do you calculate valuation cap for SAFE

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What is the optimal ownership percentage for founders post-Series A?

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How do I build a pitch deck for a venture capital fund?

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can a 1:1 chat conversation @ twitter/linkedin count as knowing someone? Can I mention the fund or ask for interest in being an LP?

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How does the system handle capital call calculations when previous commitments have already been fully called? Does it automatically prevent additional calls, or is there a way to override this for specific investors?

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Does Decile Hub provide an automatic valuation adjustment based on external market data, or do all updates require manual input from the fund manager?

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