Newsletter 8: Q&A (answer for FREE ticket to PreMoney)

 

Answer(s) to Last Week’s Question(s):

1) What is most likely to change the conversation around unicorn companies?

  • 20% A unicorn company going under
  • 26% A pullback of private investment in later stages, forcing earlier exits
  • 52% Tech bubble bursts
  • 0% A new mythical name that replaces ‘unicorn’
  • 2% Other

This Week’s Question(s):

An LP invests $100k in a Venture Fund and another $100k in a Syndicate. The Venture Fund is a standard 2/20 (mgmt fees on committed capital) structure w/ a 10-year life. The Syndicate lead takes a 15% carry and AngelList takes their 5% carry.

  • Both the fund and the syndicate invest in the same 10 companies at the same terms
  • Both the fund and syndicate invest at the same time in each company
  • The fund invests the same amount in each company
  • The syndicate invests the same amount in each company
  • Out of the 10 investments made, five fail completely
  • Two of 10 return at ~1x
  • Two return at ~3x
  • And one company has an out-sized return, yielding a total portfolio return of 5x on invested cash, for both the fund and the syndicate.

So the question is…

Issue 9 Question of the Week
Sign in to Google to save your progress. Learn more
Does the LP make a larger return on the $100k invested in the fund or the $100k invested in the Syndicate?
Clear selection
Enter your e-mail to be eligible for the free PreMoney ticket
Your answer
Submit
Clear form
Never submit passwords through Google Forms.
This content is neither created nor endorsed by Google. Report Abuse - Terms of Service - Privacy Policy