Is there a venture partner agreement that covers LP fund-raising/closing?
Is there a venture partner agreement that covers LP fund-raising/closing?
Generally, you can not directly compensate for sourcing and closing money, as these are fundraising commissions that require licensing in many jurisdictions. Funds normally offer Venture Partner roles to people that help with fundraising after the funding closes.
Thank you Adeo, can you please elaborate on the last sentence? Does this mean that Venture Partner roles are typically offered to people to over-subscribe the fund i.e. once the entire funding is completed?
Please review VC Lab's Venture Share agreement: https://govclab.com/2022/03/10/venture-share/ You can have VPs who can help with fundraising after you do 1st close. However, you can not compensate them based on money raised because that creates various broker dealer issues.