Understanding Investment Volume for Your $5MM Fund

Asked by

Community Member

Oct 11, 2023

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

1 See in Base

Answered by

Community Member

Nov 11, 2023

The estimate of doing 40 $100K deals with a $5 MM fund is a dispersed strategy. You will not sit on Boards with $100K investments. Your capital deployment strategy is dependent on your fund strategy. If you want to get a lot of shots of goal because you are very early, then investing in more deals is a good strategy.

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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?

Join the Leaders of Venture 2.0