Is this connected to LPs bank account?
Can an LP connect his bank account in order to proceed when a call is done?
Fund Closing
21 Posts
Ask about how to close a fund, including timing, processes, requirements, and limited partner requests. The database leverages expert guides on closing and closing questions from new and emerging managers.
How do I outreach on LinkedIn to targeted archetypes?
I am looking for best practices when reaching out to identified archetypes via LinkedIn. What kind of messaging works best, and how do you drive towards a meeting?
What happens if an LP wants to lower their commitment after signing the LPA?
Since it's possible to increase a position in a subsequent capital call (with a new LPA), is it also possible for an LP to request to reduce their commitment? If so, are there specific requirements for them to do so? How do you deal with that?
We are establishing a $3.8 million USD pre-seed fund for a university accelerator to support spinoffs, collaborating with donors in Montreal, Canada. Creating a fund based on donation money vs classic LPs, of course donors are not expecting returns except tax credits. We are also open to blended model that works with the fund formed by LP money and donationI money. If you have experience in this area I would love to hear from you.
What are the challenges in hindsight.
Legal, tax and accounting concerns have been addressed. My concern is how to make closing the fund successful.
In what scenarios might an LP "pre-pay" a capital commitment to a Fund?
Question reformulated for clarity, but of course let us know if it does not address the original question.
I'm having lots of conversations to sign PACTs right now (early in VC Labs), what are best practices to ensure the LPs close when it's time? (or at least up the percentage after the pact is signed)
Obviously if someone says yes to a non-binding agreement it's no sure thing of actual closing (i understand the series of yes mentality and agree it's a good strategy - so i'm in!) What are best practices to have them come through when it's time to close (to up my % of closes from PACT?) --> What's the time frame expected or typical for LPA and capital call (to manage their expectations and get that in the conversation)? [hub reports 12-18 months - but we've discussed 6 months in vc labs so would like clarification .. i know it's not black and white though and is how fast can i close/should i close and what can we do/what do you expect of us? I'm looking to close this by the end of the year! is that realistic? well idc i'm doing it anyway we have a world to impact with good ethical investing - also looking for what i may be missing and should watch out for to hit my goal - some of the unknown unknowns!!] Thanks!
When can we start deploying funds?
With a timeline of 5 months to set up the firm and another 6-12 months to finalize the fund, what% of funds need to be committed before we can deploy the funds?
What are the key benefits of Decile Start?
What are the key benefits of Decile Start?
How much does Decile Launch cost?
How much does Decile Launch cost?
How much is Decile Start?
How much is Decile Start?
Which areas does VC Lab currently have a structured program for venture funds to domicile in?
Which areas does VC Lab currently have a structured program for venture funds to domicile in?
Can I take the full capital commitment from an LP at the first close? What if I expect 10% of the Fund's LPs to come in at the first close? Does that change anything?
If I have an LP commit $100k to the fund can I take the full amount on the first close? Is this related to the percentage of fund's LPs coming into the first close?
How do GPs typically fund the setup costs before closing?
How do GPs typically fund the setup costs before closing?
What is the recommended time frame to complete closing the entire Fund after achieving the first close of 10% of Target AUM?
What is the recommended time frame to complete closing the entire Fund after achieving the first close of 10% of Target AUM?
What is the ideal first close target size for funds?
Question about the target size of the first close: our plan was to hold a first close at the $2.5M (25%) commitment level. We have heard Mike and Adeo mention a 10% level several times. What is the current best practice for nano funds such as ours?
When should fund managers file as Exempt Reporting Advisors (in the US)?
When should fund managers file as Exempt Reporting Advisors (in the US)?
Can I register a ManCo first while waiting for the fund formation process to start, then roll it in to the fund's structure later with updated documents?
Can I register a ManCo first while waiting for the fund formation process to start, then roll it in to the fund's structure later with updated documents?
How much time should a fund manager spend advising founders while closing Fund I?
How much time can a fund manager spend helping founders to gain trust? Considering all the time needed for closing Fund I, how should time be allocated?