how vc funds works
DESCRIPTION
The Venture Capital industry has many rules and constrains by which they work. Its crucial for entrepreneurs to understand this to be able to target the right funds. questions? [email protected]TRANSCRIPT
• Early stage VC fund.
• Aims to transform local startups into
regional/global players.
• Based in Santiago, office in BA.
• All limited partners are entrepreneurs.
• All 5 general partners are
entrepreneurs. 2@VANESAK [email protected]
• Invests in early stage tech startups, $250k to $750k.
• Focus in mobile.
• 2MM fund size.
• In operation. 1 legacy investment, 5 new investments.
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• Invests in early stage tech startups, $250k to $750k.
• 21MM fund size.
• Operative March 2013.
MANAGING PARTNERStrategy
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PARTNER Expansion
PARTNERPublic Affairs
PARTNER Corporate Affairs
PARTNER Dealflow
@VANESAK [email protected]
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• Founded 7 companies, exited 3.• Did 2 LatAm roll-outs. • Participated in 1 IPO.• Invested in10 as angels, exited 2.• Founded the first LatAm accelerator,
Octantis, Santiago, 2005. • Created 1 entrepreneur program.• Directed 2 entrepreneur NGO.
@VANESAK [email protected]
• Other people money.
• Contacts/ Portfolio.
• Structure.
•Follow on.
•Asset class with the higher level of risk.
7@VANESAK [email protected]
• Limited Partners: write checks but do
no add value.
• General Partners: write checks and
add value: management.
• Analysts: do the leg work
8@VANESAK [email protected]
• Fund Philosophy.
• Who are the General Partners.
• Which rounds they do.
• What is their actual portfolio.
• Where in the investment cycle they
are.
• How many partners, how many
investments.
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• Limited partner: value they add.
• General partners: what are their
domain of expertise.
• Payment: Management fee 2.5% +
carried interest 20%.
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• Limited partner: value they add
• Portfolio approach: 90% will fail
• 30/30/40 investment spread
• Investments class A, B and C
• Potential for home run: black swan
• 1 company would/should pay the fund
@VANESAK [email protected]