Fund Term Sheet
I. Fund Overview
The [YOUR COMPANY NAME] Fund (the "Fund") is a venture capital fund established to invest in innovative technology startups. The Fund's objective is to achieve superior returns for investors by leveraging deep industry expertise and a disciplined investment approach.
Fund Manager: [YOUR NAME]
Fund Size: $100 million
Target Investments: North America, Technology Sector
Term: 10 years (January 1, 2050 - December 31, 2059)
II. Investment Strategy
The Fund will primarily target early-stage and growth-stage technology companies with disruptive business models. Investments will be selected based on rigorous due diligence and a focus on companies demonstrating strong market traction and scalability.
III. Investor Rights and Obligations
Investors who hold investments in the Fund will be entitled to certain rights and will also be required to fulfill specific obligations, which include the following:
Subscription Commitment: Investors commit to a minimum investment amount of $1 million.
Redemption Rights: Investors may request redemption under specific conditions after a five-year lock-up period.
Reporting Requirements: Quarterly and annual reports will be provided to investors detailing fund performance and portfolio updates.
Meetings: Annual meetings will be held to discuss Fund performance and strategy.
IV. Management Fees and Carried Interest
The Fund will charge a management fee of 2% of committed capital per year. Carried interest will be 20% of profits, subject to a preferred return of 8% per annum.
Management Fee: 2% of committed capital annually.
Carried Interest: 20% of profits after meeting the preferred return.
Hurdle Rate: 8% per annum.
V. Redemption Terms
Investors have the option to request the redemption of their interests, but they are required to do so after adhering to a lock-up period of five years. Upon deciding to redeem, investors must provide a notice of 90 days. Additionally, the processing of these redemption requests is carried out on a quarterly basis.
VI. Governance Structure
The Fund will be governed by an investment committee responsible for key decisions, including investment approvals and fund strategy. The governance structure ensures transparency and alignment of interests between the Fund manager and investors.
Board of Directors: [YOUR NAME] (Managing Partner), [BOARD MEMBER 1'S NAME], [BOARD MEMBER 2'S NAME]
Decision-Making Process: Investment decisions require majority approval from the investment committee.
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