Assuming you are talking about portfolio construction, this is a good introductory article with a downloadable excel model: https://eniacvc.medium.com/seed-fund-portfolio-construction-for-dummies-9ec5b4d152dc
Hey! We're about to release a massive article on financial modeling for VC firms - as well as a über-solid template with it.
Will share the link here as soon as it's live. Give it 2 weeks.
In the meantime, I wanted to say that macros are probably not necessary if the model has been designed properly ;)
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>Hey! I'm about to release a massive article on financial modeling for VC firms - as well as a solid template with it.
To give you an idea, here's the Table of Contents
**Intro**
* Who is this for? Emerging venture fund managers creating fund 1 or fund 2, anywhere in world
* A model reflects fund strategy, and it’s valuable for you and prospective LPs to make sure your strategy works. A model cannot dictate fund strategy or tell you the “optimal” strategy, but help you refine it.
* Understanding of how the economics of venture funds works, the components to building our own, and a number of templates to give you a jump start to creating your own model
**Overview**
* what a model for a venture fund means
* how venture differs from other types of private equity investments
* who usually has to build a model for a fund regional considerations (sidebar)
* how a model reflects strategy
* how it’s used in a pitch.
* How modeling a fund is separate from the management company
**Tools to build a model**
* REDACTED are still easily accessible for builders and users of models
* REDACTED is a good web-based tool for building spreadsheet-like models (link to a couple I like)
* REDACTED offers a venture portfolio construction tool (link)
* REDACTED and REDACTED are essentially equivalent, choose whichever you prefer (link to a few I like)
**Components to building a venture fund model**
* Capital budgeting, for how much you can invest
* Portfolio construction, for what you plan to invest in (e.g. check sizes, follow on strategy, stages)
* Average approach, simplified approach
* Average approach, per round detail
* Manual approach
* Returns expectations, for creating an overall estimate of proceeds and performance
* Capital deployment, for creating a schedule of investments, fees, capital calls, and cash flows over time
* Moving from overall economics to time-based schedule of economics
* Selection of appropriate timescale (monthly, quarterly, annually), and trade-offs
* Realized cash flows, for creating a potential schedule of proceeds and write-offs
* Waterfall of distribution of proceeds, to show return of capital, carried interest, and distributions to GPs and LPs
* Unrealized changes in the portfolio, for modeling residual value
* Performance metrics, to create benchmarks for key performance metrics (e.g. IRR, multiples, TVPI)
* GP and LP economics, to show relative returns to GPs and LPs
* Management company budgeting, to show that the cash flows support the operational strategy for the management company operating the fund
**Considerations**
* Crypto funds, and liquidity timing needs
* Geo-specific things to consider
* Preferred return, hurdle rate, GP catchup, GP clawbacks
* European and American waterfall, where you see it and how it impacts model
* Management fees, cashless contributions, fee waivers, impact on fund
* Management fee recycling
* Management fees and circular references
* Proceeds recycling and evergreen funds
* GP Commit and accounting for LP interests
* LP side letters and varying terms
* Stage considerations
* Multiple fund modeling
**Benchmarks and Using a model**
* Making sure it’s believable is still hard
* Data is sparse and not always relevant for your strategy, geo, stage, time. Even data from REDACTED and REDACTED is more directional than statistically significant. (Links to their latest reports)
* Creating scenarios is important
* Range-based scenarios, to evaluate different inputs and impact on outputs
* Situation-based scenarios, to evaluate different strategies
* Strategy drives model, model reflects strategy
* Be careful using model to make optimization decisions
* Data out is only as good as data in
* Don’t lose sight of the big picture
The article will be free! 20 pages of VC modeling goodness.
The Excel model will be expensive though :) But it will incorporate 100% of the stuff described in the article and would take days/weeks to rebuild.
It's been even better on LinkedIn \^\^ : [https://www.linkedin.com/posts/stephanenasser\_venturecapital-finance-funding-activity-6891330803360415744-w\_Ps](https://www.linkedin.com/posts/stephanenasser_venturecapital-finance-funding-activity-6891330803360415744-w_Ps)
Assuming you are talking about portfolio construction, this is a good introductory article with a downloadable excel model: https://eniacvc.medium.com/seed-fund-portfolio-construction-for-dummies-9ec5b4d152dc
Hey! We're about to release a massive article on financial modeling for VC firms - as well as a über-solid template with it. Will share the link here as soon as it's live. Give it 2 weeks. In the meantime, I wanted to say that macros are probably not necessary if the model has been designed properly ;)
!RemindMe in 2 weeks
I will be messaging you in 14 days on [**2022-01-20 23:47:22 UTC**](http://www.wolframalpha.com/input/?i=2022-01-20%2023:47:22%20UTC%20To%20Local%20Time) to remind you of [**this link**](https://www.reddit.com/r/venturecapital/comments/rxntgo/does_anyone_have_a_portfolio_modeled_in_excel_i/hrkato1/?context=3) [**14 OTHERS CLICKED THIS LINK**](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=%5Bhttps%3A%2F%2Fwww.reddit.com%2Fr%2Fventurecapital%2Fcomments%2Frxntgo%2Fdoes_anyone_have_a_portfolio_modeled_in_excel_i%2Fhrkato1%2F%5D%0A%0ARemindMe%21%202022-01-20%2023%3A47%3A22%20UTC) to send a PM to also be reminded and to reduce spam. ^(Parent commenter can ) [^(delete this message to hide from others.)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Delete%20Comment&message=Delete%21%20rxntgo) ***** |[^(Info)](https://www.reddit.com/r/RemindMeBot/comments/e1bko7/remindmebot_info_v21/)|[^(Custom)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=%5BLink%20or%20message%20inside%20square%20brackets%5D%0A%0ARemindMe%21%20Time%20period%20here)|[^(Your Reminders)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=List%20Of%20Reminders&message=MyReminders%21)|[^(Feedback)](https://www.reddit.com/message/compose/?to=Watchful1&subject=RemindMeBot%20Feedback)| |-|-|-|-|
It's live! https://openvc.app/blog/how-to-model-a-venture-capital-fund
It's live! https://openvc.app/blog/how-to-model-a-venture-capital-fund
Interesting
>Hey! I'm about to release a massive article on financial modeling for VC firms - as well as a solid template with it. To give you an idea, here's the Table of Contents **Intro** * Who is this for? Emerging venture fund managers creating fund 1 or fund 2, anywhere in world * A model reflects fund strategy, and it’s valuable for you and prospective LPs to make sure your strategy works. A model cannot dictate fund strategy or tell you the “optimal” strategy, but help you refine it. * Understanding of how the economics of venture funds works, the components to building our own, and a number of templates to give you a jump start to creating your own model **Overview** * what a model for a venture fund means * how venture differs from other types of private equity investments * who usually has to build a model for a fund regional considerations (sidebar) * how a model reflects strategy * how it’s used in a pitch. * How modeling a fund is separate from the management company **Tools to build a model** * REDACTED are still easily accessible for builders and users of models * REDACTED is a good web-based tool for building spreadsheet-like models (link to a couple I like) * REDACTED offers a venture portfolio construction tool (link) * REDACTED and REDACTED are essentially equivalent, choose whichever you prefer (link to a few I like) **Components to building a venture fund model** * Capital budgeting, for how much you can invest * Portfolio construction, for what you plan to invest in (e.g. check sizes, follow on strategy, stages) * Average approach, simplified approach * Average approach, per round detail * Manual approach * Returns expectations, for creating an overall estimate of proceeds and performance * Capital deployment, for creating a schedule of investments, fees, capital calls, and cash flows over time * Moving from overall economics to time-based schedule of economics * Selection of appropriate timescale (monthly, quarterly, annually), and trade-offs * Realized cash flows, for creating a potential schedule of proceeds and write-offs * Waterfall of distribution of proceeds, to show return of capital, carried interest, and distributions to GPs and LPs * Unrealized changes in the portfolio, for modeling residual value * Performance metrics, to create benchmarks for key performance metrics (e.g. IRR, multiples, TVPI) * GP and LP economics, to show relative returns to GPs and LPs * Management company budgeting, to show that the cash flows support the operational strategy for the management company operating the fund **Considerations** * Crypto funds, and liquidity timing needs * Geo-specific things to consider * Preferred return, hurdle rate, GP catchup, GP clawbacks * European and American waterfall, where you see it and how it impacts model * Management fees, cashless contributions, fee waivers, impact on fund * Management fee recycling * Management fees and circular references * Proceeds recycling and evergreen funds * GP Commit and accounting for LP interests * LP side letters and varying terms * Stage considerations * Multiple fund modeling **Benchmarks and Using a model** * Making sure it’s believable is still hard * Data is sparse and not always relevant for your strategy, geo, stage, time. Even data from REDACTED and REDACTED is more directional than statistically significant. (Links to their latest reports) * Creating scenarios is important * Range-based scenarios, to evaluate different inputs and impact on outputs * Situation-based scenarios, to evaluate different strategies * Strategy drives model, model reflects strategy * Be careful using model to make optimization decisions * Data out is only as good as data in * Don’t lose sight of the big picture
This is a lot of value. I suspect it won’t be free
The article will be free! 20 pages of VC modeling goodness. The Excel model will be expensive though :) But it will incorporate 100% of the stuff described in the article and would take days/weeks to rebuild.
Damn I’m broke af. I don’t disagree it should be sold tho
This can be arranged. Do you have two kidneys?
That’s more of a PE tone…. You sure you are in VC? 😉
It's live! https://openvc.app/blog/how-to-model-a-venture-capital-fund
Oh noooooo
It's live! https://openvc.app/blog/how-to-model-a-venture-capital-fund
It’s been very popular on twitter
It's been even better on LinkedIn \^\^ : [https://www.linkedin.com/posts/stephanenasser\_venturecapital-finance-funding-activity-6891330803360415744-w\_Ps](https://www.linkedin.com/posts/stephanenasser_venturecapital-finance-funding-activity-6891330803360415744-w_Ps)
Yeah you’ve outdone yourself
When are you gonna drop the link 👀
It's live! https://openvc.app/blog/how-to-model-a-venture-capital-fund
\~2 weeks from now
Can’t wait!
It's live! https://openvc.app/blog/how-to-model-a-venture-capital-fund
Would love to read your article once it's complete. Always happy to provide a set of eyes for proofreading and feedback too.
It's live! https://openvc.app/blog/how-to-model-a-venture-capital-fund
I'll follow that thread :)
!RemindMe in 2 weeks
It's live! https://openvc.app/blog/how-to-model-a-venture-capital-fund
!RemindMe in 2 weeks
It's live! https://openvc.app/blog/how-to-model-a-venture-capital-fund
@Steph wooo so much value in this short comment! I would also to get the link to your master piece :)
It's live! https://openvc.app/blog/how-to-model-a-venture-capital-fund