#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. 🎯 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 Newsletter👇 Also, Follow Adithya Pappala for more!
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