Launch an institutional-grade VC fund in a day with no up front costs. 
Meet Start Fund
Previous Post
Next Post
0

Asked by

Community Member

on

in

Fund Operations

Is it Necessary to Finalize Venture Partner Arrangements at Fund Formation or Can We Allocate Funds and Issue Specific Amounts Later?

Do we need to finalize all Venture Partner arrangements at fund formation or can we allocate an amount for all VPs generally and issue specific amounts later (similar to an option pool)?
2 See in Base
0

Answered by

Community Member

on

You allocate a pool to offer Venture Partners after formation as the fund is operating if you think you need one.
0

Answered by

Community Member

on

No - a Fund does not need to finalize arrangements with specific Venture Partners at fund formation.  

Typically, the Fund authorizes a Share Pool (similar to an option pool or stock plan) for future and intended Venture Partners, and after hitting a first close, it will issue specific amounts (usually subject to vesting) using the Venture Partner Share Agreement template. 

If you are a Decile Launch customer, we will prepare these agreements using the template - please contact your Venture Associate to coordinate. 

Join VC Lab

VC Lab, the leading venture capital accelerator, empowers new and emerging managers worldwide to close ethical, high-performing funds in under six months. The program provides cutting-edge tools, expert mentorship, and a global network to raise more money in less time. Apply if you want to build a meaningful venture capital firm.

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?