Already an Angel? Become a VC in two working sessions, and we may invest in your fund. Seats close Sept 15.
Save My Free Seat
Previous Post
Next Post
0

Asked by

Community Member

on

in

General

Can a VC Fund Invest in Another VC Fund and Maintain a Diverse Portfolio?

Can a VC fund invest in another VC fund? Let's say they have a portfolio of 10 startups and 2 investments in other VC funds?
1 See in Base
0

Answered by

Community Member

on

Many LPAs will prevent your fund to invest in another fund. Investment into a non-operating company like a fund most likely counts against your 20% non qualifying investment bucket to maintain the VC exemption for the Manager.
0

Answered by

Community Member

on

What type of LPA will allow us to invest in a fund that is focused specifically in a sector that would not conflict with direct investment into other sector portfolio companies?
0

Answered by

Community Member

on

See the updated answer above Khaled. 

Join VC Lab

Raising your first fund? VC Lab has helped launch 950+ venture firms, with no fees and no equity taken. The average Start Fund reaches first close in 58 days.
Apply Now