VC Fund Example Portfolio Model v1.0.pdf

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The document outlines the performance of a venture capital fund with a fund size of $20,000,000, invested across 40 companies.
It details the capital deployment strategy, including the 1st check budget ($500,000) and percentage allocations for different stages (Series A).
The model analyzes the portfolio's exit outcomes, categorizing investments by loss (0-1X), acquihire (1-5X), small win (5-10X), medium win (10-20X), big win (20-50X), and unicorn (50-100X+).
The analysis includes key metrics such as average exit value, average equity, return value, and fund multiple for each exit category.
The document concludes with the total return ($48,362,500), gross profit ($28,362,500), carry ($5,672,500), and net cash back to LPs ($42,690,000), providing an overview of the fund's financial performance.

#VentureCapital #model #spreadsheet

Fund Size / # companies 40 $20,000,000
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VC Fund Example Portfolio Model v1.0.pdf

1. Fund Size / # companies 40 $20,000,000 1st check budget $500,000 $20,000,000 100% <--total capital deploy post-money val $10,000,000 5.00% % progress -> Series A 25% 10 post-money val @ A $50,000,000 avg dilution per round 30% % co's # co's avg exit value avg equity return value fund multiple % loss (0-1X) 60.0% 25 $1,000,000 5.0% $1,250,000 6% % acquihire (1-5X) 20.0% 8 $20,000,000 5.0% $8,000,000 40% % small win (5-10X) 10.0% 4 $100,000,000 3.5% $14,000,000 70% % med win (10-20X) 6.0% 2 $250,000,000 2.5% $12,250,000 61% % big win (20-50X) 3.0% 1 $750,000,000 1.7% $12,862,500 64% % unicorn (50-100X+) 1.0% 0 $2,000,000,000 1.2% $0 0% total return 100.0% 40 $48,362,500 2.42 gross profit $28,362,500 carry 20% $5,672,500 net cash (back to LPs) $42,690,000 2.13

2. Fund Size / # companies 40 $20,000,000 1st check budget $250,000 $10,000,000 50.0% post-money val $10,000,000 2.50% % progress -> Series A 25% 10 2nd check budget $1,000,000 $10,000,000 50.0% post-money val $50,000,000 2.00% avg dilution per round 30% 100.0% <--total capital deploy % co's # co's avg exit value avg equity return value fund multiple % loss (0-1X) 60.0% 25 $1,000,000 2.1% $531,250 3% % acquihire (1-5X) 20.0% 8 $20,000,000 2.1% $3,400,000 17% % small win (5-10X) 10.0% 4 $100,000,000 3.0% $11,833,333 59% % med win (10-20X) 6.0% 2 $250,000,000 2.7% $13,687,500 68% % big win (20-50X) 3.0% 1 $750,000,000 1.9% $14,371,875 72% % unicorn (50-100X+) 1.0% 0 $2,000,000,000 1.6% $0 0% total return 100.0% 40 $43,823,958 2.19 gross profit $23,823,958 carry 20% $4,764,792 net cash (back to LPs) $39,059,167 1.95

3. Fund Size / # companies 40 $20,000,000 1st check budget $250,000 $10,000,000 50.0% post-money val $10,000,000 2.50% % progress -> Series A 25% 10 20.0% <--(mgmt fees) 2nd check budget $993,125 $9,931,250 49.7% 19.7% <--(recycling) post-money val $50,000,000 1.99% -0.3% offset avg dilution per round 30% 99.7% <--total capital deploy % co's # co's avg exit value avg equity return value fund multiple % loss (0-1X) 60.0% 25 $1,000,000 2.1% $531,250 3% % acquihire (1-5X) 20.0% 8 $20,000,000 2.1% $3,400,000 17% % small win (5-10X) 10.0% 4 $100,000,000 3.0% $11,802,167 59% % med win (10-20X) 6.0% 2 $250,000,000 2.7% $13,637,313 68% % big win (20-50X) 3.0% 1 $750,000,000 1.9% $14,319,178 72% % unicorn (50-100X+) 1.0% 0 $2,000,000,000 1.6% $0 0% total return 100.0% 40 $39,758,657 1.99 gross profit $19,758,657 carry 20% $3,951,731 net cash (back to LPs) $35,806,926 1.79 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 1st checks ($ (3,333,333) ($ (3,333,333) ($ (3,333,333) 2nd checks ($ (2,482,813) ($ (2,482,813) ($ (2,482,813) ($ (2,482,813) Recycling $786,250 $786,250 $786,250 $786,250 $786,250 Small Wins $2,950,542 $2,950,542 $2,950,542 $2,950,542 Medium Wins $2,727,463 $2,727,463 $2,727,463 $2,727,463 $2,727,463 Big Wins $4,773,059 $4,773,059 $4,773,059 Unicorns $0 $0 Capital Deploy $/yr ($ (3,333,333) ($ (5,816,146) ($ (5,816,146) ($ (2,482,813) ($ (2,482,813) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ 19,931,250) deployed capital 99.7% Exit Returns $/yr ($ - ) ($ - ) ($ - ) ($ 2,950,542) ($ 2,950,542) ($ 5,678,004) ($ 5,678,004) ($ 7,500,522) ($ 7,500,522) ($ 7,500,522) ($ 39,758,657) total return 198.8% Annual Gross Cashflow ($ (3,333,333) ($ (5,816,146) ($ (5,816,146) ($ 467,729) ($ 467,729) ($ 5,678,004) ($ 5,678,004) ($ 7,500,522) ($ 7,500,522) ($ 7,500,522) gross IRR 15.7% Cumulative Cashflow ($ (3,333,333) ($ (9,149,479) ($ (14,965,625) ($ (14,497,896) ($ (14,030,167) ($ (8,352,163) ($ (2,674,158) ($ 4,826,364) ($ 12,326,885) ($ 19,827,407) ($ 19,827,407) gross profit Cumulative Carry ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ (965,273) ($ (2,465,377) ($ (3,965,481) ($ 3,965,481) total carry Annual Carry ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ (965,273) ($ (1,500,104) ($ (1,500,104) year-by-year carry Annual Net Cashflow ($ (3,333,333) ($ (5,816,146) ($ (5,816,146) ($ 467,729) ($ 467,729) ($ 5,678,004) ($ 5,678,004) ($ 6,535,249) ($ 6,000,418) ($ 6,000,418) Net IRR 13.6%

4. Fund Size / # companies 40 $20,000,000 1st check budget $250,000 $10,000,000 50.0% post-money val $10,000,000 2.50% % progress -> Series A 25% 10 20.0% <--(mgmt fees) 2nd check budget $1,067,500 $10,675,000 53.4% 23.4% <--(recycling) post-money val $50,000,000 2.14% 3.4% offset avg dilution per round 30% 103.4% <--total capital deploy % co's # co's avg exit value avg equity return value fund multiple % loss (0-1X) 50.0% 20 $1,000,000 2.1% $425,000 2% % acquihire (1-5X) 25.0% 10 $20,000,000 2.1% $4,250,000 21% % small win (5-10X) 10.0% 4 $100,000,000 3.0% $12,139,333 61% % med win (10-20X) 7.5% 3 $250,000,000 2.8% $21,270,375 106% % big win (20-50X) 5.0% 2 $750,000,000 2.0% $29,778,525 149% % unicorn (50-100X+) 2.5% 1 $2,000,000,000 1.6% $32,362,050 162% total return 100.0% 40 $95,550,283 4.78 gross profit $75,550,283 carry 20% $15,110,057 net cash (back to LPs) $80,440,227 4.02 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 1st checks ($ (3,333,333) ($ (3,333,333) ($ (3,333,333) 2nd checks ($ (2,668,750) ($ (2,668,750) ($ (2,668,750) ($ (2,668,750) Recycling $935,000 $935,000 $935,000 $935,000 $935,000 Small Wins $3,034,833 $3,034,833 $3,034,833 $3,034,833 Medium Wins $4,254,075 $4,254,075 $4,254,075 $4,254,075 $4,254,075 Big Wins $9,926,175 $9,926,175 $9,926,175 Unicorns $16,181,025 $16,181,025 Capital Deploy $/yr ($ (3,333,333) ($ (6,002,083) ($ (6,002,083) ($ (2,668,750) ($ (2,668,750) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ 20,675,000) deployed capital 103.4% Exit Returns $/yr ($ - ) ($ - ) ($ - ) ($ 3,034,833) ($ 3,034,833) ($ 7,288,908) ($ 7,288,908) ($ 14,180,250) ($ 30,361,275) ($ 30,361,275) ($ 95,550,283) total return 477.8% Annual Gross Cashflow ($ (3,333,333) ($ (6,002,083) ($ (6,002,083) ($ 366,083) ($ 366,083) ($ 7,288,908) ($ 7,288,908) ($ 14,180,250) ($ 30,361,275) ($ 30,361,275) gross IRR 31.9% Cumulative Cashflow ($ (3,333,333) ($ (9,335,417) ($ (15,337,500) ($ (14,971,417) ($ (14,605,333) ($ (7,316,425) ($ (27,517) ($ 14,152,733) ($ 44,514,008) ($ 74,875,283) ($ 74,875,283) gross profit Cumulative Carry ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ (2,830,547) ($ (8,902,802) ($ (14,975,057) ($ 14,975,057) total carry Annual Carry ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ (2,830,547) ($ (6,072,255) ($ (6,072,255) year-by-year carry Annual Net Cashflow ($ (3,333,333) ($ (6,002,083) ($ (6,002,083) ($ 366,083) ($ 366,083) ($ 7,288,908) ($ 7,288,908) ($ 11,349,703) ($ 24,289,020) ($ 24,289,020) Net IRR 28.7%

5. Fund Size / # companies 40 $20,000,000 1st check budget $250,000 $10,000,000 50% post-money val $10,000,000 2.50% % progress -> Series A 25% 10 20.0% <--(mgmt fees) 2nd check budget $993,125 $9,931,250 49.7% 19.7% <--(recycling) post-money val $50,000,000 1.99% -0.3% offset avg dilution per round 30% 99.7% <--total capital deploy % co's # co's avg exit value avg equity return value fund multiple % loss (0-1X) 60.0% 25 $1,000,000 2.1% $531,250 3% % acquihire (1-5X) 20.0% 8 $20,000,000 2.1% $3,400,000 17% % small win (5-10X) 10.0% 4 $100,000,000 3.0% $11,802,167 59% % med win (10-20X) 6.0% 2 $250,000,000 2.7% $13,637,313 68% % big win (20-50X) 3.0% 1 $750,000,000 1.9% $14,319,178 72% % unicorn (50-100X+) 1.0% 0 $2,000,000,000 1.6% $0 0% total return 100.0% 40 $39,758,657 1.99 gross profit $19,758,657 carry 20% $3,951,731 net cash (back to LPs) $35,806,926 1.79 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 1st checks ($ (3,333,333) ($ (3,333,333) ($ (3,333,333) 2nd checks ($ (2,482,813) ($ (2,482,813) ($ (2,482,813) ($ (2,482,813) Recycling $786,250 $786,250 $786,250 $786,250 $786,250 Small Wins $2,950,542 $2,950,542 $2,950,542 $2,950,542 Medium Wins $2,727,463 $2,727,463 $2,727,463 $2,727,463 $2,727,463 Big Wins $4,773,059 $4,773,059 $4,773,059 Unicorns $0 $0 Capital Deploy $/yr ($ (3,333,333) ($ (5,816,146) ($ (5,816,146) ($ (2,482,813) ($ (2,482,813) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ 19,931,250) deployed capital 99.7% Exit Returns $/yr ($ - ) ($ - ) ($ - ) ($ 2,950,542) ($ 2,950,542) ($ 5,678,004) ($ 5,678,004) ($ 7,500,522) ($ 7,500,522) ($ 7,500,522) ($ 39,758,657) total return 198.8% Annual Gross Cashflow ($ (3,333,333) ($ (5,816,146) ($ (5,816,146) ($ 467,729) ($ 467,729) ($ 5,678,004) ($ 5,678,004) ($ 7,500,522) ($ 7,500,522) ($ 7,500,522) gross IRR 15.7% Cumulative Cashflow ($ (3,333,333) ($ (9,149,479) ($ (14,965,625) ($ (14,497,896) ($ (14,030,167) ($ (8,352,163) ($ (2,674,158) ($ 4,826,364) ($ 12,326,885) ($ 19,827,407) ($ 19,827,407) gross profit Cumulative Carry ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ (965,273) ($ (2,465,377) ($ (3,965,481) ($ 3,965,481) total carry Annual Carry ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ (965,273) ($ (1,500,104) ($ (1,500,104) year-by-year carry Annual Net Cashflow ($ (3,333,333) ($ (5,816,146) ($ (5,816,146) ($ 467,729) ($ 467,729) ($ 5,678,004) ($ 5,678,004) ($ 6,535,249) ($ 6,000,418) ($ 6,000,418) Net IRR 13.6%

6. Fund Size / # companies 40 $20,000,000 1st check budget $250,000 $10,000,000 50% post-money val $10,000,000 2.50% % progress -> Series A 25% 10 20.0% <--(mgmt fees) 2nd check budget $918,750 $9,187,500 45.9% 15.9% <--(recycling) post-money val $50,000,000 1.84% -4.1% offset avg dilution per round 30% 95.9% <--total capital deploy % co's # co's avg exit value avg equity return value fund multiple % loss (0-1X) 70.0% 30 $1,000,000 2.1% $637,500 3% % acquihire (1-5X) 15.0% 6 $20,000,000 2.1% $2,550,000 13% % small win (5-10X) 8.0% 3 $100,000,000 2.9% $8,598,750 43% % med win (10-20X) 4.0% 1 $250,000,000 2.6% $6,547,188 33% % big win (20-50X) 2.0% 0 $750,000,000 1.8% $0 0% % unicorn (50-100X+) 1.0% 0 $2,000,000,000 1.5% $0 0% total return 100.0% 40 $15,145,938 0.76 gross profit -$4,854,063 carry 20% $0 net cash (back to LPs) $15,145,938 0.76 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 1st checks ($ (3,333,333) ($ (3,333,333) ($ (3,333,333) 2nd checks ($ (2,296,875) ($ (2,296,875) ($ (2,296,875) ($ (2,296,875) Recycling $637,500 $637,500 $637,500 $637,500 $637,500 Small Wins $2,149,688 $2,149,688 $2,149,688 $2,149,688 Medium Wins $1,309,438 $1,309,438 $1,309,438 $1,309,438 $1,309,438 Big Wins $0 $0 $0 Unicorns $0 $0 Capital Deploy $/yr ($ (3,333,333) ($ (5,630,208) ($ (5,630,208) ($ (2,296,875) ($ (2,296,875) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ 19,187,500) deployed capital 95.9% Exit Returns $/yr ($ - ) ($ - ) ($ - ) ($ 2,149,688) ($ 2,149,688) ($ 3,459,125) ($ 3,459,125) ($ 1,309,438) ($ 1,309,438) ($ 1,309,438) ($ 15,145,938) total return 75.7% Annual Gross Cashflow ($ (3,333,333) ($ (5,630,208) ($ (5,630,208) ($ (147,188) ($ (147,188) ($ 3,459,125) ($ 3,459,125) ($ 1,309,438) ($ 1,309,438) ($ 1,309,438) gross IRR -5.9% Cumulative Cashflow ($ (3,333,333) ($ (8,963,542) ($ (14,593,750) ($ (14,740,938) ($ (14,888,125) ($(11,429,000) ($ (7,969,875) ($ (6,660,438) ($ (5,351,000) ($ (4,041,563) ($ (4,041,563) gross profit Cumulative Carry ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) total carry Annual Carry ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) ($ - ) year-by-year carry Annual Net Cashflow ($ (3,333,333) ($ (5,630,208) ($ (5,630,208) ($ (147,188) ($ (147,188) ($ 3,459,125) ($ 3,459,125) ($ 1,309,438) ($ 1,309,438) ($ 1,309,438) Net IRR -5.9%

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1 month ago @jonathan

Please summarize Dave Mcclure's advice for founders.

Okay, based on the transcript of Dave McClure's "Financing Startup Communities" presentation, here's a summary of his advice, geared towards founders:

Focus on Creating Value: Companies, products, and services should genuinely make life better for people.
Find Passion and Mission: Be "driven" and pursue your passion.
Build a Strong Team: Surround yourself with talented, optimistic people.
Be a Part of a Community: Seek out communities for support and collaboration. McClure highlights communities built in Idealab, Y Combinator, TechStars, SeedCamp, and 500 Startups
Focus on Job Creation and Building the Local Economy:. Understand that the goal of startup communities is to improve life through more jobs, services, and affordable housing.
Make Trade, Not War: Prioritize economic activity and mutually beneficial relationships.
Build a Successful Company:. Equity investors and debt capital are needed to support companies.
Take the Long Term: Understand success takes time. Build an attractive place to build and maintain talent.
Seek Feedback:
- Send McClure feedback on what you like and don't like about his talks!

Essentially, McClure is emphasizing that startups have a powerful impact beyond just generating revenue. They are engines for economic and community development and can improve the lives of people.

It is important to note that McClure highlights these tips specifically for founders.

1 month ago @jonathan

Please summarize Dave Mcclure's advice for investors.

Okay, based on the transcript of Dave McClure's "Financing Startup Communities" presentation, here's a summary of his advice for investors:

Consider an Integrated Investment Approach: Think beyond just equity investing. Debt and real estate investments can play a vital role in building and sustaining startup communities.
Diversify Your Portfolio Across Asset Classes: Venture capital is high-risk, high-reward, but balances it with lower-risk investments like real estate and debt to create more stability and liquidity.
Invest in Non-VC-Backed Companies Too: Traditional companies that provide services are crucial for a well-rounded startup community and should be considered for debt financing.
Understand the Ecosystem: Be aware of how equity capital fuels companies, how companies create jobs and utilize real estate, and how jobs attract more residents and generate tax revenue.
Support Infrastructure: Realize that commercial and residential real estate are essential components of a thriving community and investments in those areas are needed.
Be a Community Builder: Actively participate in the community, building relationships with local government, real estate developers, lenders, and other stakeholders.
Incentivize Leadership: Ensure there are motivated and incentivized individuals driving the startup community forward.
Aim for a "Startup Community MVP": He suggests a $50-100M fund that can support 250-500 companies.
- $25-50M: Investing in 5-10 microVC funds to fund 50 companies each
- $10-20M: Commercial real estate
- $10-20M: Residential real estate
- $5-10M: traditional debt lending for 10-50 companies

In short, McClure advocates for a holistic approach to investing that goes beyond simply picking the next unicorn. It's about strategically building an ecosystem where startups and the broader community can thrive, creating a more resilient and sustainable economic base. It combines VC, real estate, and debt in an integrated way to create gravity, diversification, and liquidity.

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VC Fund Example Portfolio Model v1.0.pdf

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VC Fund Example Portfolio Model v1.0.pdf

Please summarize Dave Mcclure's advice for founders.

Please summarize Dave Mcclure's advice for investors.

VC Fund Example Portfolio Model v1.0.pdf

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