Back

Adithya Pappala

Launching India's Fi...Ā ā€¢Ā 3m

#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!

1 replies5 likes
Replies (1)

More like this

Recommendations from Medial

Image Description

Adithya Pappala

Launching India's Fi...Ā ā€¢Ā 3m

#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

See More
1 replies2 likes
Image Description
Image Description

Adithya Pappala

Launching India's Fi...Ā ā€¢Ā 3m

#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

See More
7 replies6 likes
Image Description

Adithya Pappala

Launching India's Fi...Ā ā€¢Ā 3m

#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.

See More
1 replies9 likes
Image Description
Image Description

Adithya Pappala

Launching India's Fi...Ā ā€¢Ā 3m

#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

See More
6 replies3 likes
Image Description
Image Description

Adithya Pappala

Launching India's Fi...Ā ā€¢Ā 3m

#9TDAYVC-Day 7 šŸŽÆWhat are Incentives for GPā€™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

See More
7 replies8 likes
Image Description

Adithya Pappala

Launching India's Fi...Ā ā€¢Ā 3m

#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

See More
1 replies5 likes
Image Description

Adithya Pappala

Launching India's Fi...Ā ā€¢Ā 3m

#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

See More
1 replies1 like
Image Description

Adithya Pappala

Launching India's Fi...Ā ā€¢Ā 3m

#9TDAYVC-DAY-3 First VC-Backed Company in India?? Guess!! Todayā€™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

See More
1 replies16 likes
3
Image Description
Image Description

Adithya Pappala

Launching India's Fi...Ā ā€¢Ā 3m

#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

See More
3 replies7 likes
Image Description
Image Description

Adithya Pappala

Launching India's Fi...Ā ā€¢Ā 3m

#9TDAYVC-DAY-2 šŸ˜³Only 21 Indian VC Firms are there in 2013 So, Todayā€™s VC topics are: šŸŽÆWho Invests in Venture Capital? šŸŽÆDefinition & Difference between Private Equity & Venture Capital? šŸŽÆInvestors-VC also raises, We also raise but the di

See More
10 replies12 likes
2

Download the medial app to read full posts, comements and news.