G.P Seed-VC|Investin...ย โขย 9m
#9TDAYVC-DAY-16 ๐ฏWhat is High Watermark in VC? ๐ฏWhat are Distributions/Waterfall? Apart from hurdle rate, Some consider also โhigh watermarkโ This is more common practice in hedge funds. This market denotes the highest value recorded by the fund Corpous in the past.If this level is prescribed, Then the fund manager will get additional Returns only after it crossed that value or mark. Then the additional returns will be as follows: In first year, If the fund value is upto 120 Crore then returns will be nil as it is equal to hurdle rate. If the fund value exceeds letโs say 145 crores then the additional return is 25 Crores. In a fund, This pays annual incentives to the fund managers. Distributions:This Indicates how the proceeds of the Funds will be returned to the Investors. This includes proportion, Priority, Management Fees & additional returns etc. Therefore it is very much Essential to understand the distribution terms of the fund carefully from the PPM before investing.
G.P Seed-VC|Investin...ย โขย 9m
#9TDAYVC- DAY-14 ๐ฏWhat is Hurdle Rate? ๐ฏWhat is Carry Fees? ๐ฏThe preferred returns are also called as โHurdle Rateโ in VC & P.E Funds. It is the threshold return that LPโS should receive prior GPโS receive. In developed markets, The hurdle
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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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#9TDAYVC-DAY-9 ๐ฏWhat is Due Diligence? ๐ฏWhat is Sponsors Commitment? ๐ฏDue Diligence: It should be conducted at two levels in AIF- When Investor subscribes to fund Corpous & The fund makes an Investment into Investee Companies. ๐ฏ Sponsor
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#9TDAYVC-DAY-17 ๐ฏTypes of Waterfalls in VC? ๐ฏWhat is Clawback? Two types that are โEuropean & American Waterfallโ-Under European Waterflow, 100% of all Investment Cash is paid out to Investors on a pro-rata basis & therefore preferred returns
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#9TDAYVC- DAY10 ๐ฏWhat is meant by Blind Pool? ๐ฏWhat is Draw Down? ๐ฏCapital 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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#9TDAYVC-DAY-11 ๐What is Dry Powder? ๐What is Draw Down Amount? ๐ฏDrawn 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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This is how the VC ecosystem works. - People from Canada and the USA contribute their money every month to a pension fund with the aim of receiving a pension once they retire - The pension fund, aiming to generate returns, allocates its money to v
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#9TDAYVC- DAY-8 ๐ฏWho are Custodians in VC? ๐ฏWhat is Net Asset Value? ๐ฏCustodians: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 ๐What is Management Fees? ๐What is a Expense for VC? ๐ฏManagement 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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"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
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