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Adithya Pappala

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#9TDAYVC-DAY-9 šŸŽÆWhat is Due Diligence? šŸŽÆWhat is Sponsors Commitment? šŸŽÆDue Diligence: It should be conducted at two levels in AIF- When Investor subscribes to fund Corpous & The fund makes an Investment into Investee Companies. šŸŽÆ Sponsors Commitment: The financial Investment interest into the AIF. The Manager have to sponsor the fund either 5 Crores or 2% of the Corpous of fund. Such commitment should not be from waiver of management fees. This Manager Sponsored capital will be in lock until they successfully raise the funds. Sponsors/Manager are first to be investors in the fund & last to be paid out. They may also need to invest more in tranches if the fund size goes up. If the Fund target is 50 Crores, Then one need to Invest 2.5% means 1.25 Crores. They can also opt for Green shoe Option(Means when manager want to invest more out of his pocket) Subscribe for more information detailed chapters about VC on 9TDAYVC NewsletteršŸ‘‡ Also, Follow Adithya Pappala for more!

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Adithya Pappala

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#9TDAYVC- DAY10 šŸŽÆWhat is meant by Blind Pool? šŸŽÆWhat is Draw Down? šŸŽÆCapital Commitments: Capital Commitments under less than 1 Crore is not acceptable under AIF.Employees or Directors of the AIF should Invest a minimum of 25 lakhs. 20 Crores

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Adithya Pappala

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#9TDAYVC-DAY-5 Who is Sponsor & Investment Manager in VC? šŸŽÆSponsors: Sponsor means a person who Setup AIF & Invests in. The Application to SEBI is made by the Sponsor.The sponsors should have to satisfy the criteria of Fit & Proper Person as pe

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#9TDAYVC-DAY-11 šŸ“ŒWhat is Dry Powder? šŸ“ŒWhat is Draw Down Amount? šŸŽÆDrawn Down Amount & Dry Powder: Drawn Down Amount is the amount that has been Invested into the Bank account & Dry Powder is the commitment capital which will be invested.

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#9TDAYVC-DAY-16 šŸŽÆWhat is High Watermark in VC? šŸŽÆWhat are Distributions/Waterfall? Apart from hurdle rate, Some consider also ā€œhigh watermarkā€ This is more common practice in hedge funds. This market denotes the highest value recorded by the f

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#9TDAYVC-Day 7 šŸŽÆWhat are Incentives for GP’S? šŸŽÆWho are Distributors & Placement Agents? Incentives: Salary from the Investment Management Company or from the fund directly in case they are an individual Profits from Investments they make

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#9TDAYVC- DAY-8 šŸŽÆWho are Custodians in VC? šŸŽÆWhat is Net Asset Value? šŸŽÆCustodians:Custodians are for security but also safekeeping the Investments.Custodians needs to give & accept delivery securities of dematerialised Investment Funds whic

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#9TDAYVC-DAY-12 šŸŽÆTypes of Expenses for VC? šŸŽÆWhat is a Self-Managed Fund? šŸŽÆOrganisational Expenses: These are costs for VC Funds which includes such as Incorporation Costs, Statutory Compliance Cost of the Funds, Placement Commissions, Distri

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#9TDAYVC-DAY-3 First VC-Backed Company in India?? Guess!! Today’s VC Topics are: Trends Post 2008? Categories of AIF? šŸŽÆTrends: The Industry was down until 2012 & Picked up again in 2012 by SEBI Regulations ACT. Transforming Years can be

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Adithya Pappala

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#9TDAYVC-DAY-12 šŸ“ŒWhat is Management Fees? šŸ“ŒWhat is a Expense for VC? šŸŽÆManagement Fees- Management Fees & Expenses contributed to the fund as per investment agreement between fund & Investment Manager.No SEBI Regulations in this Matter. It

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#9TDAYVC-DAY-15 What are Additional Returns? What is the Catch-Up Clause? In Developed Markets, The structure is in 2-20% where 2 is Management Fees & 20 is Additional Returns.Additional Returns & 2-20 structure is not ideal in Indian AIF Market

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