AP

Awesome People Ventures Fund 2 Financial Model

• "Decentralized VC fund": up to 50% of GP carry shared with community contributors (deal sourcers, diligencers, portfolio supporters).
• Community DAO will own/operate fund marketing, talent sourcing, and platform functions (separate legal entity).
• Talent network generates its own revenue; referrers earn % of revenue.
• ~1,500 introductions made in the prior year; positioned as "value-add VC" supernode.
• Investment thesis: Web3 inflection points - Protocols, DAOs, DAO tooling, B2B SaaS for Web3, user-owned marketplaces, creator tools.
• Decision framework: Awesome People (founder quality) + Unique insight + Unseen inflection point.

Fund economics (standard LP/GP structure; specific terms not stated in deck):

• Management fee: 2% p.a. on committed capital - standard micro-VC convention; not stated in deck.
• Carry: 20% carried interest on profits above hurdle - standard; deck says up to 50% of GP carry is shared with community contributors.
• Talent network / platform: separate revenue stream from talent referrals; exact % or revenue figure not disclosed.

Fund I:

• Fund size: $1.5M
• Portfolio: 37 checks, $25–$50k each, one check per company, 0 reserves
• Co-investors: a16z, First Round, Kleiner, Floodgate, General Catalyst, Bain Capital Ventures
• Fund I IRR: redacted ("IRR = X, up X") as of April 2022; excludes SAFE markups
• Activity: ~1,500 intros made in one year
• Fund I LPs included Marc Andreessen, Chris Dixon, David Ulevitch, Lars Dalgaard, Tom Lee, Bain Capital Ventures

Fund II target:

• Fund size: $20M
• Target portfolio: ~40 companies
• Allocation: 70% first check / 30% follow-on
• Check size: $100–$500k per company
• Deployment period: ~2 years

• Average check size: $100–$500k; midpoint ~$300k for modeling.
• First-check capital: 70% × $20M = $14M across ~40 companies → avg first check ~$350k.
• Reserve capital: 30% × $20M = $6M for follow-ons.
• Fund I average check: ~$40k ($1.5M / 37 checks).
• CAC, LTV, payback: Not applicable / not in deck (fund model, not SaaS).

• Claims to be "the first decentralized VC fund".
• Differentiators: community carry-sharing, DAO-owned operations, high-volume intro network, Floodgate mentorship (Ann Miura-Ko, Mike Maples).

• GP: Julia Lipton - former growth/revenue operator at 3 startups (most recent acquired by One Medical pre-IPO); mentored by Ann Miura-Ko and Mike Maples at Floodgate.
• FT team: GP + Chief of Special Projects.
• Community DAO: operators, founders, angels who source/diligence/support deals.
• Funding ask: $20M Fund II (LP commitments, not equity raise).
• Use of funds: ~40 early-stage Web3 investments, up to Series A; 70/30 first-check/follow-on split.

• Archetype: VC Fund Economics Model (LP/GP waterfall). This is a fund LP pitch, not an operating company. The correct model is a fund-level P&L and return waterfall - not a 3-statement or SaaS ARR model.
• Forecast horizon & granularity: 10-year fund life (standard); annual granularity for capital deployment and exits; quarterly for management fee cashflows.
• Key drivers & assumptions:
• Fund size: $20M
• Number of portfolio companies: ~40
• First-check / follow-on split: 70% / 30%
• Average check size: $100–$500k; model midpoint ~$300k
• Deployment pace: ~2 years
• Management fee rate: 2% p.a. on committed capital
• Carry: 20%
• Hurdle rate: 8% preferred return
• Community carry share: up to 50% of GP carry redistributed
• Fund life: 10 years with optional 2-year extension
• Entry valuation / ownership: avg entry post-money $5–10M seed; target 5–10% ownership per deal
• Gross MOIC targets by scenario: Bear 1.0x–1.5x, Base 2.5x–3.5x, Bull 5x+
• Loss ratio: ~40% of portfolio at 0x (industry micro-VC base rate)
• Exit timeline: avg 5–7 years to liquidity; Web3 may be shorter via token liquidity events
• Web3-specific: token vs. equity investment mix; token lockup / vesting assumptions

• Scenarios (Base / Bull / Bear - which variables flex):
• Bear: High loss ratio (50%), low multiples on survivors (1.5–2x), no follow-on reserve deployed
• Base: 40% loss rate, 3x gross MOIC on winners, 70/30 first-check/follow-on as planned
• Bull: 25% loss rate, 7x+ MOIC on top 5 names, full follow-on reserve deployed into breakouts

• Required sheets / outputs:

1. Fund Summary - fund size, fees, net investable capital, deployment schedule
2. Portfolio Construction - company count, check sizes, ownership targets
3. Capital Deployment - vintage year, first-check vs. follow-on by year
4. Management Fee & Expense Waterfall - annual fee income, fund operating costs
5. Exit / Return Waterfall - gross proceeds by company, LP preferred return, carry split (GP + community)
6. LP Returns - DPI, RVPI, TVPI, net IRR by scenario
7. Community Carry Model - $ carry allocated to community contributors vs. GP