Launch an institutional-grade VC fund in a day with no up front costs. 
Meet Start Fund
Launch your dream venture capital firm.
Apply to VC Lab
Previous Post
Next Post
1

Asked by

Community Member

on

in

Venture Legal

Aside from the Management Company, General Partner, and Limited Partner, what other legal entities need to be created for a Venture Studio? What incorporation structure is recommended for those entities?

Here the ideal structure for a Venture Studio is laid out, showing 5 legal entities - (1) Management Company, (2) General Partner, (3) Limited Partner, (4) The Venture Studio / Accelerator (operations), and (5) An Individual Company (created by the Venture Studio / Accelerator). While researching, its been suggested that the Venture Studio operations (4) be created as an LLC with the individual companies (5) being incorporated as C-corps, though I'd like some validation or refutation of this.
1 See in Base
0

Answered by

Community Member

on

This article outlines the Venture Studio stricture and entities: https://govclab.com/2023/04/25/how-to-build-a-venture-studio/

The set-up of the Venture Studio as a C-corp or an LLC depends on your strategy. If you are planning to take investment into the Studio itself, including from the Studio fund, then it might be best to set it up as a C-corp. Otherwise, the Studio will commonly be an LLC. The portfolio companies are commonly all C-corps, allowing them to easily take outside investment. 

Join VC Lab

VC Lab, the leading venture capital accelerator, empowers new and emerging managers worldwide to close ethical, high-performing funds in under six months. The program provides cutting-edge tools, expert mentorship, and a global network to raise more money in less time. Apply if you want to build a meaningful venture capital firm.

Apply Now
How do I start raising my first venture fund? What are the key considerations for becoming a Limited Partner?
How can I improve my emerging manager firm's deal flow? What strategies help attract institutional LPs?
How do I build a compelling investment thesis? What are best practices for portfolio management?
How can I differentiate my VC firm in a crowded market? What are the typical fund terms for emerging managers?