Answer to Venture Fund vs. Syndicate Brainteaser

	A	B	C	D	E	F	J	K	L	M	N
1	The following assumptions were made in order to complete the model:
2		*All investments were completed in year one
3		*The venture fund has the standard, 10-year life
4		*The venture fund mgmt fee applies to committed capital
5		*The average deal-size on Angel List is: $300k
6		*The max iniitation fee for deals on Angel List applies, which is $8k
7		*Returns for each investment are calculated at the end of the 10-year horizon, there is no time-value-of-money component and this assumes all distributions to LPs occur at the end of the horizon for both the fund and the syndicate, which is often not the case
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9		Venture Fund					Syndicate
10		Standard Variables			Fund-only Variables		Standard Variables			Syndicate-only Variables
11		Mgmt Fee (%):	2.5%		Fund Length (yrs):	10	Mgmt Fee (%):	0%		Angel List Carry (%):	5%
12		Fund Carry (%):	20%		Fund Fees:	$800	Syndicate Lead Carry (%):	15%		~Initiation Fee / Deal ($):	$8,000
13		LP Invests ($):	$100,000		Blended Mgmt Fee over fund-horizon	2.25%	LP Invests ($):	$100,000		Average Deal-Size ($):	$125,000
14		Amount to be Invested ($):	$76,700		Mgmt Fee ($):	$22,500	Amount to be Invested ($):	$93,600		Target Investment / Startup ($):	$10,000
15										% of Initaiton Fee that applies to LP Investment (%):	8%
16										Initation Fee for LP / deal ($):	$640
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18		Investments:	Amount Invested ($)	Cash-on-cash Return ($)			Investments:	Amount Invested ($)	Cash-on-cash Return ($)	Deal-by-Deal Carry for Syndicate Lead ($)	Deal-by-Deal Carry for Angel List ($)
19		Startup 1	$7,670	0			Startup 1	$9,360	0	0	0
20		Startup 2	$7,670	0			Startup 2	$9,360	0	0	0
21		Startup 3	$7,670	0			Startup 3	$9,360	0	0	0
22		Startup 4	$7,670	$7,670			Startup 4	$9,360	$9,360	$1,404	$468
23		Startup 5	$7,670	$11,505			Startup 5	$9,360	$14,040	$2,106	$702
24		Startup 6	$7,670	$15,340			Startup 6	$9,360	$18,720	$1,404	$468
25		Startup 7	$7,670	$38,350			Startup 7	$9,360	$46,800	$5,616	$1,872
26		Startup 8	$7,670	$76,700			Startup 8	$9,360	$93,600	$12,636	$4,212
27		Startup 9	$7,670	$115,050			Startup 9	$9,360	$140,400	$19,656	$6,552
28		Startup 10	$7,670	$230,100			Startup 10	$9,360	$280,800	$40,716	$13,572
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30		Total Portfolio Return	$494,715				Total Portfolio Return	$603,720
31		Inital Amount Returned to LP ($):	$100,000
32		Profit ($):	$394,715
33		Portfolio Carry ($):	$78,943	Carry is applied at the portfolio-level			Carry ($):	$111,384
34		Total Return to LP ($):	$415,772				Total Return to LP ($):	$492,336
35		Return Multiple:	4.15772				Return Multiple:	4.9
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