<ul data-eligibleForWebStory="false"><li>A VC fund comprises a distinct legal and operational framework, with the management company (franchise) separate from the actual funds (LP entities).</li><li>VCs face challenges similar to entrepreneurs during fundraising, needing to raise funds from LPs, who are then legally obligated to provide the funds within a set time frame.</li><li>The compensation structure significantly influences VC behavior, with provisions such as recycling management fees to reinvest returns into meeting initial capital commitments.</li><li>VC fund agreements establish investment parameters over time, including metrics like Multiple on Invested Capital (MOIC), Gross Internal Rate of Return (IRR), and differentiation between realised and unrealised values.</li></ul>

VC Strategy and Operations-1

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