Fund Tax (Part 1): Structure, Partnerships, and K-1 vs W-2
Many of the questions received from our book, The Venture Fund Blueprint, involve tax compliance and planning. Both are critical components of building and maintaining a successful fund. In this 3-part series on venture fund tax planning and strategies, we will share some commonly asked tax questions from emerging fund managers…
Guidelines to Grow Your Circle (with Email Intro Examples)
Relationships are critical for identifying investment opportunities, conducting due diligence, creating value for portfolio companies, fundraising from Limited Partners (LPs), and finding co-investors or sourcing customer relationships for investments. We often see fund managers mishandle relationship-building through transactional exchanges, overkill networking, or the “it’s not what you know, it's who you know” mentality…
Work Models for Your Firm: In-Person, Remote, Hybrid
Nimble funds are contemplating whether a physical office space is necessary or preferred. These same fund managers are discussing similar options with their portfolio companies, as startups decide whether their location matters as a variable for collaboration and attracting talent…
A List of Outsourced CFOs for Fund Managers
When the fundraising close occurs, these emerging managers then expand their focus of efforts toward company building — having a disciplined investing pace, facilitating a robust deal flow, conducting deep and thorough diligence, cultivating their portfolio companies, and creating a foundation of operational excellence. We like to call this developing a “durable franchise”…
A Launch Checklist for Emerging Manager Funds
To Institutional Investors, the term “Emerging Manager” indicates a venture capital investor with less than ten years of investing experience, fewer than four funds, and under $1bb in assets under management (AUM). However, the terms “Emerging Manager” and “EMVC” are often used in market today to denote fund managers from overlooked backgrounds, funds under $250mm in size, and fund managers with varied investing expertise…
LP Advice for Fund Managers
One of our favorite things about the early-stage investing ecosystem is our “pay it forward” culture. In the holiday spirit of giving, a few of our favorite Limited Partner (LP) investors have kindly shared their wisdom for emerging venture fund managers. We asked: “What piece of advice do you wish more fund managers knew?”…
My Book Launched ~ The Venture Fund Blueprint!
My new book, The Venture Fund Blueprint, was officially released! You can order it on Amazon here. We took stock of the important questions hundreds had asked us over the years and distilled them into step-by-step guides. We filled the book's pages with answers to building pitch decks, running operations, and fundraising. We are humbled and grateful for the overwhelming support…
Building Your Fund’s Investment Thesis
A critical component of establishing your fund’s differentiating investment thesis is how you articulate and execute your vision and strategy. Your vision is your desired outcome, and your strategy is the collection of resources used to reach the desired outcome. Vision and strategy share an iterative and mutually beneficial relationship: the more you clarify your intended outcome, the more apparent your resources become…
The 9 Point Due Diligence Checklist for Fund Investments
Before an investor commits capital to a Fund Manager, it is common to conduct due diligence to evaluate potential risks and fit. Diligence helps investors sift through multiple investment opportunities to find the winners, by confirming the facts, profile, and abilities that could signal future success. The following is a sample investor due diligence checklist for funds…
How To Choose a Lawyer For Your Fund
Choosing a potential lawyer for your fund is an important decision, helping you formalize your legal structure while guiding you through the obligations of becoming a fund manager. Here are some criteria to use in interviewing and picking your fund’s lawyer…
The Basics of Setting up a Fund
As a new fund manager, it is critical to configure your fund’s basic setup *before* you begin fundraising and investing. A fund setup consists of a clear vision, a differentiated investment thesis, plus a long-term framework for fund structure and operations. Here are the basic steps to set up a fund ahead of your capital raise…
4 Steps of Customer Discovery Before You Launch
As you build a new product for your business, be sure to conduct pre-launch customer discovery interviews to validate your ideas from the start, saving you the time and money by not building (or re-building) something no one wants. Here are the steps to successfully conduct your pre-launch customer discovery…
Developing a Go-to-Market Plan (GTM)
When your company’s offering is ready to “go-live”, it is important to create a Go-to-Market (“GTM”) plan before launching publicly. A GTM plan is a comprehensive strategy that details how your offering will reach customers. Here are the 4 main components used to build a GTM plan (most applicable to B2B & B2B2C companies with medium to long-term sales cycles)…
How Your Sales and Operations Can Thrive Post-COVID-19
As your business adapts to these ever-changing times, survival is everyone’s first priority. When the economy begins to recover, you will need to adopt new tactics to succeed. Outside of the more obvious transitions to virtual/digital platforms, there are other important areas to address across Sales, Operations, and HR. Here are strategies to ensure your business thrives post-COVID-19…
A Simple Way to Track Your Business Finances
Financial awareness of your business is a critical part of tracking your performance. Once equipped with accurate financial information, you can make important business decisions that can mean the difference between a healthy company or failure. Here’s a quick guide on what you need to know about your business’s finances…
The First Service Providers To Hire For Your Business
Service provider relationship management covers a wide range of operational tasks from finance to legal to technology. For many businesses, it is more effective to outsource certain operational tasks to third-parties and vendors (“providers”), than to handle in-house — especially if your team is small. By leveraging expert providers, you can save time and money where the task can be performed at a lower cost externally. Here are the common providers you’ll want to enlist to streamline your business…
The 10-Point Checklist to Launch Your Business
Starting a business can be a daunting yet rewarding endeavor for an entrepreneur. Begin with a checklist to ensure you stay organized and hit the right milestones from the beginning. Follow this checklist to guide you through your business’s launch…
How to Write an Investor Update (With Example)
Managing your investor relationships is a critical part of running a business. After completing your fundraise, begin regular communications with investors to build a long-term relationship with those who believed and invested in you. This article describes the reasons to send investor updates, their components, and an example investor update…
3-Month Fundraising Plan — Priced Equity Round
Once your business is ready to fundraise a priced round to propel your expansion, be sure to create a clear plan. Raising money for a priced equity round, often called a Series A, requires a methodical approach; and by separating your process into clear steps, you give yourself the best chance of success. Here are the steps to fundraise in 3 months…
Who Should You Hire Next?
If your business is operating with a lean team and looking to hire for expansion, you’ll need to choose your next hire wisely to address your company’s most pressing need. Most early business dilemmas can be addressed across Product, Sales, or Operations. Here are some common business challenges that present early, and who you could hire to help….