ABCDEFGHIJKLMNOPQRSTUVWXYZ
1
Assume a $100m fund (roughly similar economics will hold fm $50m-200m)
2
Scenario A
(all figures in $m unless otherwise clarified)
3
Fund Size100.0
4
Fees (2% drawn down each yr)22%78.0
5
Reserves for follow-on rounds50%39.0
6
Primary cheques corpus39.0
7
Average primary cheque value1.5
8
# of primary cheques / investments
26
9
Average stake acquired for this18%
10
Average dilution per round20%
11
12
13
14
The below means that from the 26 investments made, about 17 will raise their next round (Series A), and of these 8 will raise a B, and of these 3 will raise a C.
15
There will be 9 (i.e., 26 minus 17) that wont raise any outside money; they will get some of the bridge money shown below.
16
Reserve AllocationRaise Ratio# of such cheqsAvg Cheq ($m)
% prorata claimed
Allocation ($m)
Total Allocation ($m)
Stake at each stage
17
Portfolio Size / Primary Cheques
2618.0%
18
Series As0.7519767%0.816.016.8%
19
Series Bs0.67121540%1.113.014.9%
20
Series Cs0.5063025%1.48.112.8%
21
Bridges (failed to raise A)72.0
22
39.0
23
24
25
Series A round = $7m on pre of $28m, Series B = $15m on $60m, Series C = $30m on $120m, D = $50m on $250m, E = $100m on $500m, F = $150m on $1bn, G = 200 on $2b
26
Exit Modeling Average HitSuperhitMegahit
27
Total Rounds before Exit467
28
Rounds Played after entry333
29
Dilutive rounds134
30
Stake at Exit10.7%7.7%7.0%
31
Valuation at Exit ($m)350.01,200.03,000.0
32
Exit Value ($m)37.392.8210.9
33
34
35
36
Exit OutcomeExit ValueTotal Exit Value
37
Number of Cheques26
38
Failed to raise A -> Deadpooled700.0
39
Series A -> Deadpooled500.0
40
Series A -> Exited28.416.8
41
Series B -> Deadpooled300.0
42
Series B -> Exited314.944.6
43
Series C -> Hits437.3149.4
44
Series C -> SuperHit192.892.8
45
Series C -> MegaHit1210.9210.9
46
Total Exit Outcome514.5
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100