How AI is Shaping the Future of Venture Capital
RSVP for April 30th
0

Asked by

Community Member

on

in

Fund Operations

How do fund expenses work with the fund expense cap as set in the LPA?

We have budgeted 100k for fund expenses from our LPs. When we do the call for 2.5M do we also call for the fund expenses? How much do we call? 10% of the 100k since it’s 10% of the fund? Or do we call the full 100k and then not charge that group of investors in the future?
2 See in Base
0

Answered by

Haw Kuo

on

Generally speaking, fund expenses will be allocated from the capital called from the limited partners (there is no separate call in any way) - please read this for more information:

https://govclab.com/2022/11/07/managing-fund-expenses-for-venture-capitalists/

Join the Leaders of Venture 2.0

Our graduates are creating disruptive capital with exceptional expertise, ethical investing practices, and exceptional returns. Whether you're launching your first fund or scaling an established firm, VC Lab provides the tools, network, and support needed to succeed in today's venture landscape.

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?