Marketing Documents for a VC Fund
In raising funds from Limited Partners, make sure to prepare the following marketing materials: Website. The website should reflect the values of the general partners and details about the fund. This is the first place investors go to learn more. Pitchdeck. Just as startups use a pitchdeck to communicate their...
The Ideal Investor Profile of a VC Fund
To find the ideal investors for your VC fund, consider the following: Value proposition What is the value proposition of the fund? Answering this question will narrow the field of investors dramatically. What is the solution your fund offers? This could be funding women-led businesses, startups using the latest technology...
VC Fund References
Limited partners considering an investment in a VC fund should check the references. Here’s a list of references to consider: Other funds the VC has worked with before. This could be in the form of a syndicate for funding startups. Entrepreneur network. This is the list of startup founders the...
VC Fund Track Record
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...
How LPs Test the VC Fund
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...
Types of Limited Partners for a VC Fund
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...
Shutting Down a Startup 2
Not all startups succeed. For those that don’t, there may come a time to shut it down. Here are some key points to consider in shutting down a startup: Before announcing the shutdown, collect all accounts receivable. Sell any inventory left on hand. Notify investors first so they are aware....
Best Practices for Launching a Startup
Many founders have unrealistic expectations and misguided notions about how startups work. Here’s a list of best practices to consider for launching a startup: Don’t bank on the idea alone. Startups need more than a great idea; they need execution. Launch as soon as you can. Delaying the launch means...
The Value of LTV:CAC
The Lifetime Value to Cost of Customer Acquisition ratio is called LTV:CAC and is a useful ratio in determining the health of a startup. To calculate the Lifetime value, take the monthly revenue and divide by the churn rate. To calculate the Cost of Customer Acquisition, take the number of...
When To Sell Your Business
Startup founders receive buyout offers throughout the life of the business. Even in the early days of the startup, they have the opportunity to sell the company. At each round of funding, the founder has the choice to raise more funding or sell it. Here’s a list of reasons to...
