
Video
Jan 2, 2025: LP + GP DYNAMICS
Panel
Benjamin King: https://www.linkedin.com/in/benking1
Real thesis
Over raising AUM
Darren Eng: https://www.linkedin.com/in/darreneng
Los Angeles, CA
Funds vs. Firms
Garret Clinton: https://www.linkedin.com/in/garrettclinton
Generational transfer
LPs want liquidity
Michael Ma: https://www.linkedin.com/in/michaelma8
DPI
GP relationships vs. marriages
Michael Terpin: https://pr.linkedin.com/in/michaelterpin
Possible ~7-10 yrs for liquidity
2/20 > e.g., 2% of $10M AUM = $200k/yr
Terms
AUM (Assets Under Management):
Definition: In the context of venture capital, AUM refers to the total market value of all investments managed by a venture capital firm on behalf of its investors (limited partners).
Significance: AUM is a crucial metric for assessing the size and scale of a venture capital firm. It reflects the amount of capital the firm has available for investment and influences its investment capacity and market influence.
DPI (Distributions to Paid-In):
Definition: In the context of Venture Capital, DPI represents the total amount of money returned to investors (limited partners) divided by the total amount of money invested in the fund.
Significance: DPI is a key performance metric for venture capital funds, indicating how much capital has been returned to investors relative to their initial investment. A higher DPI generally signifies a more successful fund.
See: Carta: What is DPI?
Markups:
Definition: In venture capital accounting, a markup refers to an increase in the value of a portfolio company's shares held by the fund.
Example: If a VC fund initially invested $1 million in a company at a $10 million valuation and the company later raises another round at a $20 million valuation, the fund's existing shares have effectively doubled in value, resulting in a significant markup.
Markdowns:
Definition: A markdown represents a decrease in the value of a portfolio company's shares held by the fund.
Example: If a portfolio company experiences significant financial difficulties or fails to meet its growth projections, the VC fund may be forced to lower the valuation of its investment, resulting in a markdown.
Vocab by: Gemini.
Thesis
Evolution Ventures Fund Management (EVFM): Master Thesis
VC
Evolution Ventures MinervaFund: Apply via Dealum