Zero Fund-VC|Investi... • 7m
#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 are paid out in full. Pro-Rata means that all capital is invested treated equally & also distributions done accordingly. For example if a person invested 10% of the fund then he is entitled to receive only 10% of the Distributions. The “American Waterfall” structure tries to improve the waiting time for the manager to earn additional returns. This structure allows managers to get paid before investors get 100% preferred returns. ClawBack-This is American Waterfall clawback provision built in for Investors.It also addresses the both profits & losses in portfolio.This recover the performance fees from the manager from failed investments.Hence Claw back give the right to pull back money from the managers at any time of the fund life.👇
Zero Fund-VC|Investi... • 7m
#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
See MoreZero Fund-VC|Investi... • 7m
#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
See MoreZero Fund-VC|Investi... • 7m
#9TDAYVC- DAY-14 🎯What is Hurdle Rate? 🎯What is Carry Fees? 🎯The preferred returns are also called as “Hurdle Rate” in VC & P.E Funds. It is the threshold return that LP’S should receive prior GP’S receive. In developed markets, The hurdle
See Moreमैं एक विचार हूं (I ... • 3m
One more interesting idea....... If American and European companies can't make profit they can sell their stake to our Gujju and Marwari bhai......... They can make profit without harming nature....... Gujju in the house 🤣 🤣 🤣 ......Vepaar ma pa
See MoreBusiness enthusiasti... • 5m
Types of Management Structures Management structures define how authority and responsibilities are distributed within an organization. Here are the key types: 1. Hierarchical Structure A top-down model with clear authority and accountability, idea
See MoreCyber Security Stude... • 11m
🚀 Understanding the Filesystem Hierarchy Standard (FHS) It is crucial for efficient system administration and software development. FHS provides a consistent directory structure and file naming conventions in Unix-like operating systems, making it
See MoreHonorary Mentions - ... • 1y
[Business Resource] A 40-minute session by LLA on how to build and sell products, based on their real experience with the product Jagruk Journal. They covered the following topics: R&D: 1. Ideation 2. Market Research 3. Documentation 4. Waterfall
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