Should you give an anchor investor a stake in your fund’s management company?

Raising capital for a new fund is always hard. But should you give preferential economics or other benefits to a seed anchor investor who makes a material commitment to the fund?

These “VCs for investment management companies” are also known as GP stake investors or fund platforms. According to DocSend, “About half the VC firms in our survey had an anchor LP for their fund, and the average percentage that an anchor LP took in a first-time fund was 25%. The prevalence of anchor LPs among both early-stage and more established firms in our data suggests that securing an anchor investor can be crucial for signalling a firm’s credibility to other potential LPs.”

Read the complete article on Tech Crunch >

Liked the update?

Share on facebook
Share
Share on twitter
Tweet
Share on linkedin
Publish