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Recycling ? for VC nerds: assume a $10m fund, 1:1 follow on, $2m lifetime fees.
How to recycle?
- $5m initial, $3m f/o, recycle $2m post small exits
- same, but recycle pre small exits & assume those'll eventually come
- $4m initial, $4m f/o, recycle post exit
- something else?
How to recycle?
- $5m initial, $3m f/o, recycle $2m post small exits
- same, but recycle pre small exits & assume those'll eventually come
- $4m initial, $4m f/o, recycle post exit
- something else?
Upside of more $ upfront is that $ goes in at a lower cost basis. Downside is you can run out of follow on $.
Recycling before exits is risky, but you double down earlier in the fund at lower valuations. Waiting for exits is no risk, but double down valuations are much higher.
Recycling before exits is risky, but you double down earlier in the fund at lower valuations. Waiting for exits is no risk, but double down valuations are much higher.
