Investor Connect Podcast

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

In raising a fund you’ll need an executive summary which should include the following:

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. 

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.
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Direct download: Startup_Funding_Espresso_--_Creating_an_Executive_Summary_for_a_Fund.mp3
Category: -- posted at: 2:13pm CDT