VC Fund Example Operational Budget v1.0.pdf

VC Fund Example Operational Budget v1.0.pdf

• 1. Fund Exp Ops Exp Fund Term (~10 yrs) YR1 YR2 YR3 YR4 YR5 YR6 YR7 YR8 YR9 YR10 Fund Size $20,000,000 Income - Mgmt Fees (%) 2.00% 3.00% 3.00% 2.50% 2.50% 2.00% 2.00% 1.50% 1.50% 1.00% 1.00% - Mgmt Fees ($) $4,000,000 $600,000 $600,000 $500,000 $500,000 $400,000 $400,000 $300,000 $300,000 $200,000 $200,000 Expenses @100% @100% @100% @50% @50% @20% @20% @20% @20% @20% - Fund Formation x $100,000 $50,000 $50,000 - - -- - - - - - - Legal (deal execution) x $525,000 $100,000 $100,000 $100,000 $50,000 $50,000 $25,000 $25,000 $25,000 $25,000 $25,000 - Fund Admin x $375,000 $50,000 $50,000 $50,000 $50,000 $50,000 $25,000 $25,000 $25,000 $25,000 $25,000 - Tax Prep / K-1 x $250,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 - Annual Audit x $250,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 $25,000 subtotal fund exp $1,500,000 $250,000 $250,000 $200,000 $150,000 $150,000 $100,000 $100,000 $100,000 $100,000 $100,000 - Headcount x $2,775,000 $370,000 $370,000 $370,000 $370,000 $370,000 $185,000 $185,000 $185,000 $185,000 $185,000 - Partners 2 $120,000 $240,000 $240,000 $240,000 $240,000 $240,000 $120,000 $120,000 $120,000 $120,000 $120,000 - Associates 1 $80,000 $80,000 $80,000 $80,000 $80,000 $80,000 $40,000 $40,000 $40,000 $40,000 $40,000 - Other Staff 1 $50,000 $50,000 $50,000 $50,000 $50,000 $50,000 $25,000 $25,000 $25,000 $25,000 $25,000 - Rent / Office Expense x $250,000 $50,000 $50,000 $50,000 $25,000 $25,000 $10,000 $10,000 $10,000 $10,000 $10,000 - Marketing/Advertising x $250,000 $50,000 $50,000 $50,000 $25,000 $25,000 $10,000 $10,000 $10,000 $10,000 $10,000 - Other Services x $250,000 $50,000 $50,000 $50,000 $25,000 $25,000 $10,000 $10,000 $10,000 $10,000 $10,000 - Travel & Ent x $250,000 $50,000 $50,000 $50,000 $25,000 $25,000 $10,000 $10,000 $10,000 $10,000 $10,000 - Annual Meeting x $175,000 $25,000 $25,000 $25,000 $25,000 $25,000 $10,000 $10,000 $10,000 $10,000 $10,000 subtotal ops exp $3,950,000 $595,000 $595,000 $595,000 $495,000 $495,000 $235,000 $235,000 $235,000 $235,000 $235,000 Capital Deployment - 1st Checks 50% $10,000,000 - Fees & Expenses 27% $5,450,000 - Recycling 15% $3,000,000 - Reserves / Follow-on 38% $7,550,000 total capital deploy 88% 100% 25% 25% 25% 15% 10% Capital Calls $20,000,000 $5,000,000 $5,000,000 $5,000,000 $3,000,000 $2,000,000 Mgmt Fees / Expenses $5,450,000 $845,000 $845,000 $795,000 $645,000 $645,000 $335,000 $335,000 $335,000 $335,000 $335,000 1st Checks $10,000,000 $3,333,333 $3,333,333 $3,333,333 Reserves / Follow-on $7,550,000 $1,510,000 $1,510,000 $2,265,000 $2,265,000 Recycling $3,000,000 $600,000 $600,000 $600,000 $600,000 $600,000 Cash On Hand $821,667 $133,333 $95,000 $785,000 $475,000 $740,000 $1,005,000 $670,000 $335,000 $0