EG

Earl Grey Capital Fund II Financial Model

• Thesis: invest in API-first, protocol, and platform companies - developer-facing infrastructure businesses.
• Differentiated access: co-founders of Clearbit (Alex MacCaw) bring direct founder relationships and warm intro networks to institutional leads (a16z, Sequoia, Tiger Global, Josh Buckley, etc.).
• Value-add to portfolio: EGC co-invests alongside, facilitates lead introductions, and fills rounds with high-signal angels.
• LP value proposition: co-invest rights, deal partnership, carry on any deal LPs introduce, and network access to portfolio.

Standard VC fund economics - not explicitly broken down in the deck, but implied:

• Management fee: ~2% of committed capital per year (industry standard for a fund this size); on $20M = ~$400K/yr.
• Carried interest: 20% carry on profits above hurdle (industry standard). Actual carry terms not disclosed in deck.
• No other revenue streams mentioned.

Fund I performance:

• $8.5M deployed
• 72 investments (including 6 SPVs)
• 20+ markups
• 85th percentile performance on AngelList (AL)

Overall portfolio (since 2019):

• 110 total investments
• 45+ markups
• 16 markups over 5x
• 3 unicorns

Select Fund I portfolio multiples (Valuation Multiple % = MOIC × 100, i.e. 8000 = 80x): | Company | Multiple (%) | Key Follow-on Investors | | -- | -- | -- | | SWORD Health | 8,000 | Founder's Fund, Khosla, Sapphire, General Catalyst | | Crossbeam | 3,674 | a16z, Redpoint | | NexHealth | 2,857 | a16z, Josh Buckley, Tiger Global | | Census | 2,520 | Sequoia, Tiger Global | | Oxygen | 2,401 | Tribe Capital, Ankur Nagpal, YC | | TruWork | 1,620 | Khosla, Sequoia | | Simplified | 1,000 | Craft, 8bit | | Trellis Technologies | 971 | QED, General Catalyst | | Royal | 800 | a16z, Coinbase Ventures, Founder's Fund | | Field Trip Psychedelics | 880 | Soleus Capital, Avidity Partners | | Racket | 750 | Angels & operators | | Synthesis School | 700 | Anthony Pompliano, Ankur Nagpal |

LP base: 80+ LPs onboard. Named LPs include David Sacks, Josh Buckley, Jeff Fagnan, Josh Hannah, Josh Kopelman, Ryan Hoover, Ankur Nagpal, Calvin French-Owen, Eoghan McCabe, JD Ross, Jaleh Rezai, Auren Hoffman, Hiten Shah, Eric Feldman, Justin Mares + 70 more.

NexHealth case study: Series A $35M → Series B $341M → Series C $1B cap (< 2 years from EGC initial investment to $1B).

Not explicitly framed as competitive analysis. Moat implied via:

• Clearbit founder pedigree: $50M+ ARR, 1,000+ customers, 800,000+ users.
• Angel/operator network access: introductions to Josh Buckley, Naval Ravikant, Harry Stebbings, Rahul Vohra, Des Traynor, etc..
• 110 investments since 2019 = deal flow flywheel and pattern recognition.
• 85th percentile AL performance = verifiable benchmark.

Team:

• Amit Vasudev - GP
• Alex MacCaw - GP; co-founder of Clearbit ($50M+ ARR API business, 1,000+ customers, 800,000+ users)
• Matt Sornson - GP; Clearbit co-founder

Funding ask:

• Fund II target: $20M
• 80+ LPs already onboard

LP eligibility: Both QP and non-QP investors eligible; must be accredited.

• Archetype + why: VC Fund Economics model. This is not an operating startup - it is an LP-facing pitch for a $20M early-stage fund. The appropriate model is a fund economics / cashflow model covering: (a) capital deployment schedule, (b) management fee income, (c) portfolio MOIC / DPI / TVPI projections, and (d) carried interest waterfall. An operating company 3-statement model is not applicable.

• Forecast horizon & granularity: 10-year fund life (standard for early-stage VC); annual granularity. Years 1–3 = deployment phase; Years 4–7 = value creation/markups; Years 8–10 = realisation/distributions.

• Key drivers & assumptions:
• Fund size: $20M
• Management fee rate: 2.0% p.a. on committed capital during investment period, stepping to 1.5% on NAV thereafter
• Investment period: 3 years
• Fund life: 10 years (+ 2-year extension option)
• Number of investments: ~70–90 (based on Fund I pace of 72 investments / $8.5M = ~$118K avg. check; scaling to $20M implies ~170 checks at same size, but EGC may write larger checks in Fund II)
• Average initial check size: ~$150K
• Reserve ratio for follow-ons: 30–40%
• Portfolio MOIC (gross): Base 3.5x, Bull 6x, Bear 1.8x
• Carry: 20% above 1x hurdle
• Management company expenses (salaries, ops): ~60–70% of management fees, leaving ~$120–160K/yr net to GPs before carry
• LP TVPI targets: Base ~2.5x net, Bull ~4x net, Bear ~1.3x net
• Deployment pace: equal thirds over 3 years or front-loaded

• Scenarios (Base / Bull / Bear - which variables flex):
• Base: 3.5x gross MOIC, 20% carry, 2% mgmt fee, ~80 investments
• Bull: 6x gross MOIC (2–3 breakout unicorns like NexHealth trajectory), faster deployment, higher follow-on conversion
• Bear: 1.8x gross MOIC (most investments written off, few markups), slower deployment, LP defaults

• Required sheets / outputs:

1. Assumptions - fund size, fee structure, carry terms, deployment schedule
2. Deployment Schedule - capital deployed by year, initial vs. follow-on split
3. Management Fee P&L - fee income, management company expenses, net GP income
4. Portfolio Model - investment-by-investment MOIC table (seeded from Fund I actuals); cohort-level loss ratios and markup rates
5. Fund Cashflows - capital calls, distributions, recycling
6. Waterfall - carried interest calculation (LP return of capital → hurdle → catch-up → 80/20 split)
7. LP Returns Summary - TVPI, DPI, RVPI, IRR by scenario
8. Sensitivity Table - gross MOIC vs. carry rate → net LP IRR