Cayman Update: Private Funds Law 2020 Requires VCs to Register
Update: On July 7, 2020, the Cayman Islands Government amended the Private Funds Law 2020 and expanded the definition of a “private fund”. As a consequence, a few types of entities (such as “single investment funds” and “no fee no carry funds”) that were expected to be excluded from the […]
Primer: Management Fees in Venture Capital Funds
We are often asked about the “market” rate for management fees in actively managed venture capital funds. This primer discusses mainstream venture capital funds, so to speak. If your fund is in the venture space but has special attributes (such as being a secondaries fund, a very small micro-fund, a […]
Primer: LP Governance Rights in Venture Capital Funds
Venture capital funds are closed-ended, long duration blind pools. In the many years following closing, the fund manager is permitted to operate and invest the fund in its discretion as long as it stays within some limited guidelines codified at inception in the partnership agreement. But, what happens if circumstances […]
CFIUS Reform: Implications of FIRRMA for Fund Managers
After long debate concerning the need to reform the Committee on Foreign Investment in the United States (“CFIUS”) to address evolving national security threats and emerging technologies, the Foreign Investment Risk Review Modernization Act (“FIRRMA”) became law on August 13, 2018. FIRRMA expands CFIUS’s powers to review investments by “foreign […]
Primer: Carried Interest in Venture Capital Funds
We are often asked about the prevalent market options for structuring carried interest provisions in venture capital funds. In this post, we’ll speak of mainstream venture capital funds, so to speak. Terms differ in special situations, like co-investment funds, top-up funds, funds that are wholly or partially funds-of-funds, and so […]
Q3 2019 Quarterly VC Update: Anna Patterson on the State of Venture Capital Investing
In conjunction with our Q3 Venture Financing Report, I sat down with Anna Patterson from Gradient Ventures to get her take on the state of venture capital investing. Key insights On asking for help from your investor: Repeat entrepreneurs ask for help more frequently. When you need help, ask for it. That’s what […]
Q2 2019 Quarterly VC Update: Suranga Chandratillake on the State of Venture Capital Investing
In conjunction with our Q2 Venture Financing Report, Suranga Chandratillake from Balderton Capital discusses his take on the state of venture capital investing. A few highlights On technology companies driving valuations to historic highs: “Software is eating the world, and it has a voracious appetite. … Against a backdrop of sweeping technological change, the […]
Q1 2019 Quarterly VC Update: Deal Volumes and Valuations Decrease Slightly in the New Year
In conjunction with our Q1 Venture Financing Report, Zack Schildhorn from Lux Capital discusses his take on the state of venture capital investing. A few highlights On the current market: “It’s an ebullient time with plenty of cash in the ecosystem, rising valuations and – importantly – a huge wave of liquidity.” On the […]