Startup Funding Espresso -- Creating an Executive Summary for a Fund
Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.In raising a fund you\u2019ll 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.\xa0\xa0 Distribution Strategy -- most funds provide a recycle provision that let\u2019s GPs reinvest profits back into the fund.\xa0 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.\xa0 Investment Strategy -- outlines the investment thesis. Management Team -- the resumes of the general partners.\xa0 Finally, there are disclaimers to include.\xa0 Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding. Let\u2019s go startup something today. -------For more episodes from Investor Connect, please visit the site at: Check out our other podcasts here: For Investors check out: For Startups check out: For eGuides check out: For upcoming Events, check out For Feedback please contact info@tencapital.group