11 Comments
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Marcelo Franco's avatar

The debate of IRR, MOIC, and other benchmarking metrics for venture funds is a hot topic indeed. Great article 👍🏼

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CJ Gustafson's avatar

Loved how you broke down the typical fund lifecycle for us

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RabbiJacob's avatar

Great intro!

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hunterwalk's avatar

it's not the main point, but most (all?) funds have some management fee step down after the initial investment period/when next fund is raised/some sort of milestone.

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Kyle Harrison's avatar

True.

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Yehuda Dachs's avatar

Excellent article detailing the implications of dry powder. It is fascinating to follow the incentive line that you lay out. It will be interesting to see where this goes.

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David Paul's avatar

OMG! I love wet powder. This is exceptional

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Alex Glaubach's avatar

Great read! Is there such thing as reserve ratios in LP agreements to ensure some baseline level of capital calls be met?

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Kyle Harrison's avatar

Depends on the LPA. can include things like specific deployment cycles, so you have to call everything (not including reserves) within 3 years. But those can also be adjusted with approval from LP committee.

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Alex Glaubach's avatar

Wonder if a standard like Dodd Frank could ever emerge for LPs or if it'll always remain LPA-by-LPA

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Leonardo Zamboni's avatar

Wow 🤯 thank you

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