Wed, 15 April 2020
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.
Fund Objectives, (Legal) Structure, Fund Specifics, Investment Strategy, Investment Criteria, Investment Process Overview, Management Team and Disclaimers.
Fund Objective -- purpose of the fund and how it will be deployed.
Legal Structure -- is it a fund, a syndicate, a pledge fund or some other structure?
Fund Specifics -- most funds are based on a ten-year window.
Distribution Strategy -- most funds provide a recycle provision that let’s GPs reinvest profits back into the fund. Other funds require a hurdle rate before GPs can share in the profits. This means the investors get their principal investment back before the GP takes any carry.
Limited Partner Units -- private funds are limited to a maximum of ninety-nine accredited investors in the fund.
Fee Structure -- most funds use the two percent management fee and a twenty percent carry.
Compensation Structure -- this determines when and how the GPs receive their compensation.
Initial Deposit -- funds vary in how much of the funds are required from investors up front.
Investment Strategy -- outlines the investment thesis.
Management Team -- the resumes of the general partners.
Finally, there are disclaimers to include.
Let’s go startup something today.
Direct download: Startup_Funding_Espresso_--_Creating_an_Executive_Summary_for_a_Fund.mp3
Category: -- posted at: 2:13pm CDT