Discussing Portfolio Construction with LPs: The Surface, the Math, the Execution

Portfolio Construction is one of the most complex and underestimated aspects in Venture Capital. It is complex for three reasons:...

How much to charge for an SPV

Many VC managers use single-asset, special purpose vehicles (SPVs) to give their LPs access to direct investment opportunities in their portfolio companies. SPVs increase the manager’s fee-generatin...

#OpenLP Series — Premium Carry

To get a view of market practice we have analyzed the fee structure of the last 100 VC fund investment opportunities - across the US, Europe and Asia-Pacific - which we have reviewed. As per our strat...

Good entrepreneurs choose their VCs

Managers (“VCs”) know from experience that getting into a ‘hot’ deal can be a tough challenge. And that it is not enough to source the deal, go through the necessary due diligence and have an ...

How Limited Partners Can Add Value to Venture Capital Funds

Many VCs have started to build out their portfolio acceleration platforms, which they use to attract more investment opportunities, lower their failure rate, and increase their negotiating leverage. ...

How Limited Partners Can Add Value to Venture Capital Funds

Many VCs have started to build out their portfolio acceleration platforms, which they use to attract more investment opportunities, lower their failure rate, and increase their negotiating leverage. ...

BFP #OpenLP Series — How we assess fund investments: (2) MoIC & DPI

What are MoIC and DPI? Multiple on Invested Capital (MoIC) is calculated by dividing the fund’s cumulative realized and unrealized value by the total dollar amount of capital invested by the fund....

BFP #OpenLP Series (6) — VC Partnership Models: How to Split the Economics

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BFP #OpenLP Series (5) — How much to charge for an SPV

Many VC managers use single-asset, special purpose vehicles (SPVs) to give their LPs access to direct investment opportunities in their portfolio companies. SPVs increase the manager’s fee-generatin...

BFP #OpenLP Series — How we assess fund investments: (4) PORTFOLIO CONSTRUCTION

Having in previous articles in this series looked at performance metrics, we will now turn to other important aspects of our due diligence process. How a VC fund manager plans to construct their fund�...

BFP #OpenLP Series — How we assess fund investments: (3) IRR

IRR reflects the Internal Rate of Return, taking into consideration the capital returned and the time at which the capital flows. It is designed to take into account the time value of money, reflectin...

BFP #OpenLP Series — How we assess fund investments: (1) TVPI

Total-Value-to-Paid-In-capital (TVPI), or the investment multiple, is calculated by dividing the fund’s cumulative distributions plus its residual value by the amount of paid-in capital (as opposed ...

Building A Venture Capital Strategy For A Private Equity Investor

As an asset manager and active LP in Venture Capital funds, we have lots of conversations with other LPs on how to build a strategy in the asset class. We wanted to publicise our thoughts here and are...

What’s Your VC’s Tech Stack?

VCs are at the forefront of technological disruption, funding many of the latest cutting edge productivity tools. But what tools are they using themselves to automate their own processes? As a glob...