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Adithya Pappala

Stealth • 1m

#9TDAYVC-DAY-5 Who is Sponsor & Investment Manager in VC? 🎯Sponsors: 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 per 2008 SEBI Regulations ACT. Criteria is mentioned below: Defaulter, Criminal Cases & Insolvency pending case holders are not allowed. Sponsors has to be informed to SEBI & need to get approval before they held operations. The critical functions include: Sponsoring the Fund, Defining the Theme, Fund in Appropriate structure, Registration, Formation of the fund from time to time. 🎯 Investment Managers: These will be appointed by the sponsors to manage the fund & also can be considered as sponsors of the fund. The Sponsorship Company does appoint the Investment Management company in which the sponsors are principal executives. The Investment Managers are known as GP’S. Managing Partners are also called Sponsors. More in Comments👇

7 replies6 likes

Replies (7)

Anonymous 3

Stealth • 1m

Achha so basically sponsors are the foundation and the investment manager is the operational backbone yeah?

1 replies1 like

Anonymous 2

Stealth • 1m

Today I learned that sponsors are crucial in setting up and structuring the fund, they are essentially the architects of the fund. Thanks man.

1 replies1 like

Anonymous 1

Stealth • 1m

The overlap in terminology, where Investment Managers are sometimes considered sponsors gets kinda confusing for me

1 replies1 like

Adithya Pappala

Stealth • 1m

For Detailed & in Clear Concepts about VC- Follow ''9TDAYVC" Newsletter for everything about VC- https://substack.com/@9tdayvc We are already completing 1 Chapter Today.📌

0 replies

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Adithya Pappala

Stealth • 1m

#9TDAYVC-DAY-9 🎯What is Due Diligence? 🎯What is Sponsors Commitment? 🎯Due Diligence: It should be conducted at two levels in AIF- When Investor subscribes to fund Corpous & The fund makes an Investment into Investee Companies. 🎯 Sponsor

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Adithya Pappala

Stealth • 1m

#9TDAYVC-DAY-12 🎯Types of Expenses for VC? 🎯What is a Self-Managed Fund? 🎯Organisational 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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Adithya Pappala

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#9TDAYVC- DAY-8 🎯Who are Custodians in VC? 🎯What is Net Asset Value? 🎯Custodians: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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Adithya Pappala

Stealth • 1m

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

3 replies7 likes

Mahendra Lochhab

Stealth • 3m

SEBI gives approval to Jio Financial and BlackRock to set up mutual fund business

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Saksham

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Found the following on Twitter (Now X), this influencer has wrongly given this name of "Hedge Fund" to his "Portfolio" and this person Sagar sarcastically replied What exactly is a Hedge Fund. Let's clear it out. A Hedge Fund is an investment fund

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Adithya Pappala

Stealth • 1m

#9TDAYVC- DAY10 🎯What is meant by Blind Pool? 🎯What is Draw Down? 🎯Capital 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-16 🎯What is High Watermark in VC? 🎯What are Distributions/Waterfall? Apart from hurdle rate, Some consider also “high watermark” This is more common practice in hedge funds. This market denotes the highest value recorded by the f

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Adithya Pappala

Stealth • 1m

#9TDAYVC-DAY-17 🎯Types of Waterfalls in VC? 🎯What is Clawback? Two types that are “European & American Waterfall”-Under European Waterflow, 100% of all Investment Cash is paid out to Investors on a pro-rata basis & therefore preferred returns

1 replies2 likes

Adithya Pappala

Stealth • 1m

"Did you know? Earth's annual GDP is 900 Lakh Crores ($10.7 trillion) & valuation is 2.8 Lakh Lakh Crores($332 trillion) You may ask,why does it matter to me? As an early-stage entrepreneur, remember: "The larger the sector,The higher the Impact, T