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Venture Capital Model updates

March 23, 2025

Hello spring update to the Venture Capital Model (renamed from Venture Investor Model):

  1. Fixed a couple intermediate change issues in draft versions of the model post the last detailed update, all removed from the live version.
  2. Edited Management Company sheet to reflect Quarters, not Years (the timescale should have said Quarters and should have been 80 periods).
  3. Edited recycling calculations on Forecast to eliminate possibility of calculating recycling larger than possible with proceeds in a given periods with certain recycling structure options (added a min() test to a few lines).
  4. Edited % of Invested Capital per stage calcs on Get Started to correctly handle late-stage investments (previously did not account for the last two stages correctly).
  5. Edited the scenario 2 and 3 Forecast sheets to bring them to parity with the changes to the LP waterfall.
  6. Edited Get Started to provide more detail behind the average investment to make the difference between the number of investments and the invested capital clearer.
  7. Brought back the option to use called capital as a base for management fees. This had been deprecated due to the complexity of calculating this without circulars, but was added back in using algebra method built into the Forecast sheet.
  8. Edited Get Started for new method to forecast overall invested capital, and edited Forecast to create the algebra to forecast the base for investments using assets under management and called capital. This was a heavy update, impacting management fees and deployment subcalcs. It will not always calculate a perfect called capital = committed capital under all scenarios, but is more reliable and still reflects the practical difficulties for funds budgeting for investments and fees with some of the recycling and fees options they may be using in their LPA. Someday I'll get the algebra perfect, until then we will live with a real life scenario.

As always, questions, ask anytime.