What constitutes eligible startup equity for GPs to contribute 1% to the fund?
What constitutes eligible startup equity for GPs to contribute 1% to the fund?
LPs typically expect that GPs contribute 1% to the fund. Think of it like skin in the game. This can be done via cash, or, via equity from a warehouse investment. So, for example, if you have equity in company, you can contribute that instead of cash to make up the 1%.