0

Can a Major Investment in a Company Count Towards Your Fund's Financial Backing and How Are Investments Generally Accounted For?

If you have a major investment in a company that would foreseeably become the first investment of your fund, can this count towards your financial backing, and if so, by how much? How are investments generally accounted for?
1 See in Base
0
You would ‘Warehouse’ this deal into your fund. This is a common practice which makes your fund more attractive to investors. Basically, you would move your investment into your fund. LPs would invest in your fund and get a return once a liquidity event takes place from this deal.

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