Already an Angel? Become a VC in two working sessions, and we may invest in your fund. Seats close Sept 15.
Save My Free Seat
Cohort 22 launches September 10. Bring a founder, an angel, or an LP who belongs in the room. The VIP Launch Mixer is free and online.
Reserve a Spot
Previous Post
Next Post
1

Asked by

Community Member

on

in

General

What is the most common free structure for a fund of funds?

I know the 2 and 20 wouldn't apply here, since you are investing in directly in funds.

If 30% of the portfolio goes into Funds, and 70% is direct into companies (mostly coinvests), are you still considered a Fund of Funds?
1 See in Base
0

Answered by

Community Member

on

Fund of Funds fees are typically 1 and 10. 

On the strategy you mentioned above, ti sounds like a classic VC Fund. You will not be able to do 70/30 though due to the VC exemption and the complexity with reporting. But it could be 80/20.
0

Answered by

Community Member

on

To add, 70/30 FOF strategy would make it such that the FOF won't be a qualifying venture capital fund. To the extent you are relying on the VC adviser exemption, you'd then no longer be managing solely VC funds and you'd blow your exemption.
0

Answered by

Community Member

on

Ok but it sounds that If I go 20% into funds and 80% direct, It qualifies as a VC fund.
0

Answered by

Community Member

on

On a high level, yes. But, the devil is in the details...

Join VC Lab

Raising your first fund? VC Lab has helped launch 950+ venture firms, with no fees and no equity taken. The average Start Fund reaches first close in 58 days.
Apply Now