Limited Partner (LP)

IRR: What Internal Rate of Return Means in Venture Capital

IRR (Internal Rate of Return) is how venture capitalists measure the time-adjusted performance of their investments. Here's what it means, how it's calculated, why timing matters, and what good IRR looks like for a VC fund.

Index Ventures and Village Global: The Rise of Network-First Deal Sourcing

Index Ventures and Village Global have built scout models that put network effects at the center of venture investing. How distributed intelligence is replacing traditional VC sourcing.

LP Data Room Best Practices: What to Include When Raising Your Fund

A practical guide for emerging managers on exactly what to include in an LP data room, how to structure it, which platforms to use, and the mistakes that quietly kill a fundraise.

How a VC Fund Makes Its First Investment: From Fund Close to First Check

Closing a fund is just the beginning. Here's what happens in the critical 90 days after a new VC fund closes — and how the firm makes its first investment.

Side Letter Best Practices for Emerging Managers: What to Grant and What to Avoid

A practical guide to VC side letters for emerging managers: what they are, which provisions are standard, how MFN clauses really work, what to push back on, and how to avoid the most common mistakes that can haunt a fund for its entire life.

How Capital Calls Work: What LPs Need to Know About Fund Drawdowns

When you commit capital to a VC fund, you don't wire the full amount upfront. You respond to capital calls over time. Here's exactly how that process works — and what happens if you don't pay.