target="_blank" rel="nofollow" href="#ulink_f6782947-9175-5743-828c-f751b6638a3a">TEAM DYNAMICS: STABILITY, SKILL SET, AND ALIGNMENT
NOTES
13 Fund Size and Portfolio Construction
NOTES
14 Performance Analysis
INDIVIDUAL PERFORMANCE AND ATTRIBUTION
PUBLIC MARKET EQUIVALENTS
FUND-LEVEL PERFORMANCE
MEASURING REALIZED RETURNS
SELF-SELECTION BIAS: GIANTS AMONG MIDGETS
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15 Terms of Fund Investment
KEY TERMS
FUND FINANCIAL TERMS
FUND GOVERNANCE TERMS
WHAT INSTITUTIONAL LPs SEEK
OFFERING SWEETENERS TO ATTRACT LPs: A DOUBLE-EDGED SWORD
MOST NEGOTIATED LP–GP TERMS
WHY LPs TERMINATE EXISTING RELATIONSHIPS
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16 The Venture Firm's Ethos, Culture, and Values
ETHOS
CULTURE AND VALUES
GOVERNANCE OF THE FIRM
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17 Raising Your First Fund
FIRST STEPS
TARGETING LPs
MARKET TIMING
FIT WITHIN THE LP's CURRENT PORTFOLIO
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18 The Fundraising Roadshow
OVERVIEW: THE FUNDRAISING PROCESS
GETTING IN THE LP DOOR
LOCKING YOUR ANCHOR INVESTOR
SELL, SELL, SELL
SHOULD YOU WAREHOUSE PORTFOLIO COMPANIES?
YOUR BIGGEST FUNDRAISING RISKS, AND HOW TO MANAGE THEM
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19 Why LPs Seek First-Time Funds
CREATIVITY, HUNGER, AND PERFORMANCE
RANKING EMERGING MANAGERS
A FUTURES OPTION
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20 Sourcing Investment Opportunities
OVERVIEW: THE SOURCING PROCESS
PROACTIVE SOURCING
NETWORK-BASED SOURCING
ACCELERATORS
ANGEL NETWORKS
COMMERCIALIZING UNIVERSITY RESEARCH
CORPORATE RESEARCH
TRADE CONFERENCES
INVESTOR PITCH SESSIONS
THE AGONY OF MISSED OPPORTUNITIES
NOTES
10 Part Three: Building Your Portfolio 21 Due Diligence Cheat Sheet NOTE 22 Diligence THE CHECKLIST MANIFESTO TAILORING DILIGENCE BY STAGE CHECKLISTS — USEFUL BUT SELDOM USED NOTES 23 Management Team Diligence: Assessing the Intangible OVERVIEW VALUES AND INTEGRITY CAN THE COMPANY ATTRACT GIANTS? CAN THE CEO EXECUTE? LAMBS VERSUS CHEETAHS SERIAL ENTREPRENEURS VERSUS FIRST-TIME ENTREPRENEURS BIAS AT WORK: SEEKING ATTRACTIVE MEN BACKGROUND CHECKS: FALSE MBAS AND CRIMINAL HISTORIES VARIOUS APPROACHES TO MANAGEMENT DILIGENCE NOTES 24 Market, Product, and Business Model Analysis EVALUATING THE PRODUCT ASSESSING THE BUSINESS MODEL NOTES 25 Terms and Conditions Apply THE SPIRIT OF THE TERM SHEET NEGOTIATION STRESS POINTS 26
