Back

Adithya Pappala

Launching India's Fi...ย โ€ขย 4m

#9TDAYVC-DAY-17 ๐ŸŽฏTypes of Waterfalls in VC? ๐ŸŽฏWhat is Clawback? Two types that are โ€œEuropean & American Waterfallโ€-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 โ€œAmerican Waterfallโ€ 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.๐Ÿ‘‡

1 replies2 likes
Replies (1)

More like this

Recommendations from Medial

Image Description
Image Description

Adithya Pappala

Launching India's Fi...ย โ€ขย 4m

#9TDAYVC-DAY-16 ๐ŸŽฏWhat is High Watermark in VC? ๐ŸŽฏWhat are Distributions/Waterfall? Apart from hurdle rate, Some consider also โ€œhigh watermarkโ€ 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

Adithya Pappala

Launching India's Fi...ย โ€ขย 4m

#9TDAYVC- DAY-14 ๐ŸŽฏWhat is Hurdle Rate? ๐ŸŽฏWhat is Carry Fees? ๐ŸŽฏThe preferred returns are also called as โ€œHurdle Rateโ€ in VC & P.E Funds. It is the threshold return that LPโ€™S should receive prior GPโ€™S receive. In developed markets, The hurdle

See More
1 replies1 like
Image Description

Adithya Pappala

Launching India's Fi...ย โ€ขย 4m

#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 More
1 replies1 like

Ankush Yadav

เคฎเฅˆเค‚ เคเค• เคตเคฟเคšเคพเคฐ เคนเฅ‚เค‚ (I ...ย โ€ขย 13d

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 ๐Ÿคฃ ๐Ÿคฃ ๐Ÿคฃ ......Vepaar ma pa

See More
0 replies1 like
Image Description

Aryan patil

ย โ€ขย 

Monkey Adsย โ€ขย 6m

"The stock market, a pivotal force in European imperialism, played a crucial role in the colonization of the world by British and other European powers. One of the earliest examples of this phenomenon was the Dutch East India Company (DEIC). Founded

See More
2 replies6 likes
Image Description

Adithya Pappala

Launching India's Fi...ย โ€ขย 4m

#9TDAYVC- DAY10 ๐ŸŽฏWhat is meant by Blind Pool? ๐ŸŽฏWhat is Draw Down? ๐ŸŽฏCapital 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

VCGuy

Believe me, itโ€™s not...ย โ€ขย 7m

Swiggy's upcoming IPO will be a multibagger win for early VC investors. ๐ŸŽฏDetailed insights will be available once their DRHP is public, but if you look at the history - - Elevation Capital: Investment of $5.9 M turned into $61.8 M (~10x returns) -

See More
3 replies17 likes
2
Image Description

Adithya Pappala

Launching India's Fi...ย โ€ขย 4m

#9TDAYVC-DAY-12 ๐ŸŽฏTypes of Expenses for VC? ๐ŸŽฏWhat is a Self-Managed Fund? ๐ŸŽฏOrganisational 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
Image Description

Adithya Pappala

Launching India's Fi...ย โ€ขย 4m

#9TDAYVC-Day 7 ๐ŸŽฏWhat are Incentives for GPโ€™S? ๐ŸŽฏWho 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
Image Description

kamal p

Tech-enthusiastย โ€ขย 7m

Global shopping app With the rising interest for global products, we are a marketplace that brings affordable, high quality products to customers from all over the world. Whether it is Korean makeup/clothing or American foods or Thai juices or Euro

See More
8 replies5 likes

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