Wires
Is the wiring of payments (eg following a capital call), a feature considered for future versions of Decile Pro?. Are there any plans to develop a Stripe like function to allow requesting and receiving payments from the platform?
Fund Operations
132 Posts
Ask about all aspects of fund operations, including setting up bank accounts, sending out reports, making distributions, doing capital calls, and managing fund experiences. The data includes questions answered by experts and professional guides.
Are evergreen funds recommended?
Are evergreen funds recommended as a potential fund option? Are these funds welcomed by the VC Lab accelerator program?
How is ownership in a VC fund passed on to survivors of a deceased LP.
For an individual who is an LP, how does ownership in a given VC fund get passed to the individual's survivors.
What are the differences and/or relations between Schedule or Investments or Cap Adjusted tabs?
Under investments tab of back office there is the option to see investments under Schedule or Investments or Cap Adjusted tabs. Conceptually what is the difference between these two and are there any predictable relationships that always apply?
Where I can find a good template or example of a formal investment procedure at VC fund as a separate document. Shall cover roles, responsibilities, timelines, processes ets.
I've raised from several institutional LP's and they ask for formal investment procedure at VC fund as a separate document with roles, responsibilities, timelines, processes ets. May be someone has done something similar so I would not build from zero. I guess such procedure shall cover raising / origination / evaluation / investment decision / investing / acceleration (value creation and preservation) / monitoring / reporting / exit/
Who can be a reference us inside VC Labs for NVCA?
Who can be a reference us inside VC Labs for NVCA?
NVCA requires two referrals from VC funds who are NVCA members. Is there a means to do that inside the VC Lab network?
How the management fee is distributed between the management company and general partner company?
We (2 partners)asked the same question to Decile Base and got two contradictory answers:
1. "In a venture capital firm, the management fee is typically collected by the Management Company and then distributed to the General Partners for their services in managing the fund's operations and investments. The exact distribution can vary based on the agreement between the Management Company and the General Partners. It's important to note that the management fee is separate from the carried interest, which is a share of the fund's profits that the General Partners may also receive."
2. "Management fees are typically allocated to the General Partner (GP) as a percentage of committed capital. These fees are then used to cover the operational costs of the fund, including salaries, office expenses, and other administrative costs. The Management Company (ManCo) usually receives a portion of these fees for its role in managing the fund. The exact distribution between the ManCo and GP can vary and is typically outlined in the fund's Limited Partnership Agreement (LPA)."
The question remains - who collects and then distributes the Management Fee?
What's the most common way to handle defaulting LPs?
Looking at the Cornerstone LPA for example, I find there's multiple avenues a GP could choose to deal with a defaulting LP. What's, based on industry experience, the rationale for choosing one over the other, and which ones are the most common?
- Removing the LP from the partnership by either considering their interest forfeited or selling it at a discount
- Using distributions to cover capital calls
- Pursuing legal action
And when does it make sense for the GP to waive the interest?
I imagine many of these decisions are down to the individual relationship with the LP, so I'd love to know the common/best practice here.
Why is there a strong preference by US LPs, for VC firms to be incorporated specifically in Delaware?
Why is there a strong preference by US LPs, for VC firms to be incorporated specifically in Delaware?
what are the roles in VC?
Can someone explain this to me like I'm five? The more I read heading into the VC Lab Accelerator the more I feel like a dunce. It seems like everyone is a partner, but what are they doing, I know I am the General Partner and will be responsible for the first fund and distribution of capital. and I know that Limited Partners will be my source of capital. But what about everyone else?
Venture Partner? Not a clue
Principal? Thinking this is like a GM or a Director of Product?
Managing Partner? Thinking this is like a COO
Venture Associate? This I can approximate from investment banking associates
Similar to IB, are there VPs of the same style in venture capital?
I might be putting the horse in front of the cart here but i want to make sure i am talking the talk at all events.
My goal is to really blow this out of the water, so looking down the road to multiple funds with hundreds of millions in AUM what roles should i be considering for proper organizational structure? Are there any case studies on this? How should I go about breaking apart responsibilities so there is collaboration but no toe-stepping.
Cheers, Eager to Succeed
Best platforms for starting my VC Tech Stack?
I'm fresh as a baby when it comes to Venture Capital, but I've been in software for the last 25 years. I'm starting the accelerator soon, and want to make sure I'm fully prepared. Should I be starting conversations with any software sales team to increase my efficiency in the program? Would love to be all set up and ready to hit the afterburners when we get to software for fund administration or other tasks. Let me know!
Entity Naming Pros and Cons - Management Company and Fund Series
What are some entity naming pros and cons of the management company and fund series? Consider the example below with one private fund series that has one fund series with one thesis and a second fund series with a second thesis. (Bolded text represents a classification and not an entity name standard.):
• The Management Company
• X Ventures Management LLC
• X Ventures Management L.L.C.
• X Ventures Management, LLC
• X Ventures Management, L.L.C.
• The Private Fund Series
• The Fund I Thesis 1
• The Fund I Thesis 1 For LPs
• X Ventures Fund I Thesis 1 LP
• X Ventures Fund I Thesis 1 L.P.
• X Ventures Fund I Thesis 1, LP
• X Ventures Fund I Thesis 1, L.P.
• The Fund I Thesis 1 For GPs
• X Ventures Fund I Thesis 1 GP
• X Ventures Fund I Thesis 1 G.P.
• X Ventures Fund I Thesis 1, GP
• X Ventures Fund I Thesis 1, G.P.
• The Fund I Thesis 2
• The Fund I Thesis 2 For LPs
• X Ventures Fund I Thesis 2 LP
• X Ventures Fund I Thesis 2 L.P.
• X Ventures Fund I Thesis 2, LP
• X Ventures Fund I Thesis 2, L.P.
• The Fund I Thesis 2 For GPs
• X Ventures Fund I Thesis 2 GP
• X Ventures Fund I Thesis 2 G.P.
• X Ventures Fund I Thesis 2, GP
• X Ventures Fund I Thesis 2, G.P.
Which level of hurdle rate is now acceptable in European VC
We understand that Decile team encourages to skip the hurdle, but we see that generally investors in Europe do no accept it (mainly due to high inflation)
European GPs with entities in Luxemburg: What European banks do you recommend?
I'm being advised to consider Bank Frick (based in Liechtenstein) but I am wondering what the banks in Europe you're banking with are, if you're a European GP with your entities set up in Luxemburg.
Thank you!
For investment volume.. I've planned 40 investments at 100,000 each for a $5 MM fund ($1 MM for management fees over 10 years). I'm not sure what the thinking is for this. Can I have clarity on what is recommended or what my thinking should be?
(also for our team that's 8 people on boards - 5 each)
https://fi-hatchbox-production-uploads.s3.amazonaws.com/drive/VCLab_Deal_Volume.png
what's the roles (and differences) and compensation between managing partners, general partners, principles and venture partners, associates, analysts and other junior support personnel (and any other team role I may have missed) - take for example a 5 million dollar fund and use real numbers and real % of carry
interested in how different fund structures or sizes (10M, 50M) would pay out as well.
Also focused on Web3 - so roles like tokenomics is critical to have someone involved I would imagine.
SPV provider
If I want to create SPVs alongside the main fund for opportunity deals, do you have recommendation what provider should we work with? I know Carta has this service but since VC Lab does not recommend Carta, do you have alternative suggestion?
What are your thoughts on the Solo Fund Manager versus Multi-Fund Manager Approach?
My experience with Venture Capital has seen funds that operate with a single fund manager and others with multiple fund managers. Often, performance is very similar and each respective fund sees the value in their own approach. As a third party, is there any major benefits going down the single fund manager or multi-fund manager approach?
Fund Management Fees
Fund Management Fees are typically 1% - 2% of the fund size. Are there other fee arrangements that can be used?
How Does a Manager Handle Disposal of Non-Liquid Assets Following Fund Completion?
What happens in the event that an investment is made in a company, but there is no liquidity event for that equity (or token) by the time the fund term has finished? Said another way, how do we manage the disposal of non-liquid assets after completion of the fund?
What is a good team structure for a venture studio vs a venture fund?
I'm trying to ascertain the different roles and responsibilities within both a venture studio and a venture fund, beyond the LPs and 1-2 GPs in it.
When investing in a startup, what should my Fund's signature block look like?
I have already reached a first close on my fund and now want to invest into startups - how should I sign the investment documents on behalf of my Fund?
What is a warehoused investment?
There are many questions surrounding these, but what are warehoused investments specifically? What is the definition?
Compensation for MBA Interns
Are MBA interns at venture capital funds typically compensated or do they volunteer their time?
What do you think about onboarding a connection from a bigger fund as a Venture Partner?
Is it advisable / feasible to onboard a connection from a bigger fund operating in the same vertical as Venture Partner for a solo-GP, angel stage firm ?
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