VC Fund Track Record

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Limited Partners in VC funds look at the team's track record and also that of previous funds.

Here's a list of key metrics to disclose about your track record:

Total Value to Paid in (TVPI)

Compares the value of realized gains and the estimated value of remaining assets to the total amount of capital raised.

Net IRR.

Calculates the Internal Rate of Return on the funds distributed, which is the net present value of all cash flows.

Graduation rate.

The number of investments that raised a follow-on round of funding.

Follow on investors.

The existence of investors who followed up with additional funding.

Key investments.

A list of standout investments showcasing the strength of the investment thesis.

Write-offs.

The number of investments that have been written off. The fewer, the better

Value distribution.

The number of investments making a return for the fund. The more the better.

Include these numbers in your VC fundraise.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

How LPs Test the VC Fund

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Limited Partners test VC funds before investing.

Here's a list of the criteria LPs use to test the fund:

Does the fund have a track record that is compelling?

Does the fund fit an open slot in the LPs asset allocation?

Does the fund manager have access to deals the LP does not?

Does the fund manager have the ability to construct a better portfolio than the LP?

Can the fund manager better support the startup than the LP?

Does the fund bring access to other LPs who can provide value to the portfolio?

Does the fund have LPs that bring credibility to the fund itself?

Does the fund require a high minimum investment?

Does the fund's minimum investment require the LP to take on debt?

Does the fund charge below, above, or standard fees?

There are many funds available to the Limited Partner.

Consider these points in preparing a pitch to an LP for your fund.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.

Types of Limited Partners for a VC Fund

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

In raising a VC fund, there are several types of limited partners.

Here's a list to consider:

High networth individual

This is a person who has a net worth of over a million dollars available for investment.

They often participate as an active investor.

Ultra high net worth individual.

This is a person who has a net worth of over $5M available for investment.

They can make higher levels of investment and often want a controlling position in the management of the fund.

Single-family office.

This is a family office entity representing one family.

They invest along a more specific investment thesis, but can be patient money.

Multi-family office.

This is a family office entity that represents several families.

They invest in a more risk-averse manner.

Corporate

This is a larger company that makes investments for strategic purposes.

They invest to gain access to new technologies and industries.

Institutions.

These are pension funds, endowments, and foundations.

They invest along a more strict governance structure.

Consider these types of limited partners for your VC fund.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let's go startup something today.

_________________________________________________________

For more episodes from Investor Connect, please visit the site at: http://investorconnect.org

Check out our other podcasts here: https://investorconnect.org/
For Investors check out: https://tencapital.group/investor-landing/
For Startups check out: https://tencapital.group/company-landing/
For eGuides check out: https://tencapital.group/education/
For upcoming Events, check out https://tencapital.group/events/

For Feedback please contact info@tencapital.group

Please follow, share, and leave a review.

Music courtesy of Bensound.