Launch an institutional-grade VC fund in a day with no up front costs. 
Meet Start Fund
Previous Post
Next Post
1

Asked by

Community Member

on

in

Fundraising

PACT Agreement

Is there a reason the following brackets are in the base PACT agreement and can they be removed for a US fund?

The undersigned understands that the Offering is being made without registration under any securities law in any jurisdiction, including the [Securities Act of 1933 (the “Securities Act”), as amended, or any securities law of any state of the United States], and is being made only to ["accredited investors" (as defined in the Securities Act)].
2 See in Base
0

Answered by

Community Member

on

The brackets in the base PACT agreement are placeholders for jurisdiction-specific legal references. For a US fund, these references to the Securities Act of 1933 and accredited investors are crucial for compliance with US securities laws. Removing them could lead to legal issues, as they specify the legal framework under which the offering is made. It's advisable to retain these references to ensure the agreement aligns with regulatory requirements. Always consult legal counsel before making such changes.
0

Answered by

Community Member

on

The brackets in the base PACT agreement are placeholders for jurisdiction-specific legal references.  The language in the bracket is suggested language. For example, if you're in the US or launching a fund in Delaware, you can remove the brackets and the PACT will then work in Delaware. If, on the other hand, you plan to launch the fund in a different jurisdiction, you can replace the content in the brackets to match that jurisdiction.

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?