# Earl Grey Capital Fund II Financial Model

Earl Grey Capital Fund II is a $20M early-stage venture fund investing in APIs, protocols, and platforms - the programmatic layers of the internet.

- Canonical: https://finamodel.com/startups/earl-grey-capital-fund-ii
- Excel download: https://finamodel.com/startup-models/earl-grey-capital-fund-ii.xlsx
- Category: Enterprise/Security
- Model type: SaaS ARR / Valuation
- Funding round: Fund 2

- Founded: 2022
- Geography: US-focused (portfolio companies US-based); LP base appears US-centric.


## About the company

Earl Grey Capital Fund II is a $20 million early-stage venture fund focused on APIs, protocols, and platforms: the programmatic layers of the internet. It is an LP fundraise rather than an operating-company presentation, so its economics differ fundamentally from a startup SaaS model.

The fund earns management fees from committed capital and carried interest from investment gains. Its investing thesis centres on early infrastructure businesses, where initial cheque sizes, reserve strategy, follow-on participation, and the timing of exits determine eventual fund outcomes.

The model schedules capital commitments, drawdowns, investments, reserves, management fees, portfolio marks, exits, and carry. It produces fund-level and LP outputs including distributions, DPI, TVPI, RVPI, and net IRR, with scenarios for ownership, dilution, exit multiples, and timing.

## What's included

- 5-year monthly revenue build with stage-appropriate growth assumptions
- Full P&L, headcount plan, and operating-expense schedule
- Cash-flow statement, runway, and burn-rate tracking
- Valuation via exit multiple with a DCF cross-check
- Returns analysis with MOIC and IRR
- Unit economics including CAC, LTV, payback, and cohort retention

## Product & value proposition

- 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.

## Revenue model

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.

## Traction & metrics

**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).

## Competition / moat

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 & funding ask / use of funds

**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.

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## Recommended financial model

- **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

## Frequently asked questions

### Is the Earl Grey Capital Fund II financial model free?

Yes. The Earl Grey Capital Fund II model is a free Excel download with live formulas.

### Can I change the assumptions?

Yes. The workbook is editable and its live formulas recalculate when assumptions change.