For Investors & Boards
Does the Reserve Planning VC Funds Use Pay Off for LPs?
Reserve planning: VC funds hold back about half their capital. Size reserves for rounds a new investor prices; insider-only rounds return less.
For Investors & Boards
Portfolio monitoring, fund metrics, diligence, and board reporting for VCs and angels.
Investors and board members read a company's numbers from the outside, usually late and in someone else's format. These guides cover monitoring a portfolio, spotting financial red flags, preparing diligence, and planning follow-on reserves.
Start with monitoring, then the warning signs, then diligence and reserves.
Where to start
- 01 Portfolio Monitoring Starts With Reports That Arrive Late What to collect from portfolio companies, and when a ratio is reliable enough to compare.
- 02 8 Startup Financial Red Flags, Sorted by What They Predict The warning signs that actually predicted problems in documented cases.
- 03 Data Room: What It Is and What Goes In One for a Fundraise What goes in a startup data room, organised by the warranties investors ask for.
- 04 Does the Reserve Planning VC Funds Use Pay Off for LPs? How much of a fund to hold back for follow-on rounds, and who should set the price.
Metric guides on this topic: VC fund metrics: MOIC vs IRR, TVPI vs DPI, and how the six numbers fit together · MOIC (multiple on invested capital): formula, calculator and benchmarks
All 4 articles
For Investors & Boards
8 Startup Financial Red Flags, Sorted by What They Predict
Startup financial red flags like fast growth and fundraising fit almost every startup. In SEC fraud cases, the tell was a number no outsider could confirm.
For Investors & Boards
Data Room: What It Is and What Goes In One for a Fundraise
A data room is the set of documents investors check before they invest. For a fundraise, build it from the warranties the company will sign at closing.
For Investors & Boards
Portfolio Monitoring Starts With Reports That Arrive Late
Portfolio monitoring for VCs and LPs: the reporting deadlines, the KPIs to collect at each stage, and why late reports and small customer bases mislead.