# Long Journey Ventures Fund I Financial Model Early-stage generalist VC fund raising Fund I ($30M target) on the back of a ~$10M angel/pilot fund deployed 2016–2019 - Canonical: https://finamodel.com/startups/long-journey-ventures-fund-i - Excel download: https://finamodel.com/startup-models/long-journey-ventures-fund-i.xlsx - Category: Enterprise/Security - Model type: VC Fund Waterfall - Funding round: Fund 1 - Funding: $35M - Founded: 2019 - Geography: US-primary; sourcing advantage in LatAm (Lee Jacobs network: Pipefy, CargoX, Rappi) and Europe/Paris (Pascal Levy-Garboua) [DECK, slide 4] ## About the company Long Journey Ventures Fund I is a $30 million early-stage generalist venture fund, following an approximately $10 million angel and pilot portfolio deployed from 2016 to 2019. It invests at seed and pre-seed rather than operating as a software company. The fund earns management fees and a 20% carried-interest share of investment gains. Portfolio construction, reserves, ownership, follow-on participation, and the timing and value of exits - not product gross margin - determine the return profile for limited partners and the GP. The financial model schedules commitments, capital calls, investments, reserves, fees, exits, and carry. It produces gross and net IRR, DPI, TVPI, RVPI, and LP-versus-GP return splits, with sensitivities for deployment pace, ownership, loss ratios, and exit 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 - Value-add seed fund: write small checks ($400k–$700k) and compete on operator expertise, not just capital - Three differentiated service pillars: (1) fundraising strategy + introductions; (2) product/growth via Brian Balfour / Reforge network; (3) recruiting via Elaine Wherry network - Cyan Banister's PayPal Mafia / Founders Fund network provides proprietary deal access - Lee Jacobs's AngelList background provides sourcing of emerging managers and next-gen founders - Testimonials from portfolio CEOs (Loom, Crusoe, Pipefy, VoiceOps, TravelJoy) explicitly credit LJV with fundraising outcomes ## Revenue model - **Management fee:** ~2% average per annum on committed capital; on $30M fund = ~$600k/yr - **Carried interest:** 20% of profits above return of capital (and presumably a hurdle, though hurdle rate not stated) - **Fund life:** 10 years + 2-year extension option; investment period 5 years - No other revenue streams disclosed (no SPV fees, no syndication fees mentioned explicitly, though SPV investments are referenced in appendix slide 24) ## Traction & metrics - Pilot fund: ~$10M invested between 2016–2019 - Performance table (slide 12) is **redacted** - per-year Invested Capital, Value, Capital Realized, Capital Unrealized, and MOIC columns are blacked out in the image; individual figures are not readable - Data as of July 1, 2020 - Compound Finance position: exited ~1/3 at approx. 6x fund-level return in 2 yrs; COMP token trading ~$210, held at $157.50 to reflect illiquidity - Angel portfolio highlights as of Oct 2020: - Postmates: sold to Uber for $2.65B - Notion: raised at 156x markup from seed - Opendoor: went public at $4.4B via SPAC - Trusted: raised at 12x angel valuation in 2 years - Compound: ~$600M market cap, ~25x seed investment in 2 years - Middesk: $16M Series A led by Sequoia - 4 of 5 investments made in 2016 raised follow-on capital - Co-investor count: Founders Fund ×6, a16z ×5, Bain Capital ×4, Accel ×3, Sequoia ×3 ## Competition / moat - Moat framed as network-driven sourcing and value-add, not sector specialisation - Cyan Banister (fmr. Founders Fund partner) brings credibility and PayPal Mafia access - Brian Balfour (Reforge CEO) provides product/growth diligence and operator network - LatAm + European sourcing edge claimed as geographic differentiation - LP base includes Marc Andreessen, Peter Thiel, and operators/investors from Andreessen Horowitz, ICONIQ, Airtable, Airbnb, Uber, SurveyMonkey - No direct competitor comparison slide ## Team & funding ask / use of funds **Team:** - Lee Jacobs - Founder/Managing Director; fmr. AngelList partner, MHS Capital - Cyan Banister - Managing Director; entrepreneur/investor (Uber, SpaceX, Carta, Postmates, Niantic); fmr. Founders Fund partner - Brian Balfour - Venture Partner; Founder/CEO Reforge; HubSpot - Pascal Levy-Garboua - Venture Partner; VP Business Checkr; angel in Notion, Checkr, Trusted Health; based Paris - Jon Bruck - Venture Partner; Founder Pocket (acq. Mozilla), IndexTank (acq. LinkedIn), Xoopit (acq. Yahoo) - Elaine Wherry - Venture Partner; Meebo (acq. Google $100M), Dandelion Chocolate **Fund ask / structure:** - Target Fund Size: $30M - Investment Period: 5 years - Fund Life: 10 years + 2-year extension - Management Fee: Average ~2% - Carry: 20% **Portfolio construction:** - 35–40 core investments at $400k–$700k per check - Generalist; focus on founders with grit/perseverance (immigrants) and deep customer empathy - New fund also making opportunistic SPV investments (slide 24: Checkr Series B, Dia & Co Series A, Rappi Series B) **Use of funds / deployment:** Not explicitly broken down. Implied: ~$22–28M deployed into 35–40 companies at seed/pre-seed --- ## Recommended financial model **This is a VC fund LP pitch, not an operating startup. The correct model is a VC fund economics / waterfall model.** - **Archetype + why:** VC Fund Economics Model - covers fund deployment, management fee income, gross/net IRR, DPI/TVPI/RVPI, carry waterfall, and LP vs GP return split. Standard for fund-of-funds diligence or LP decision-making. A 3-statement operating model is not appropriate here; the fund is not an operating business with COGS or working capital. - **Forecast horizon & granularity:** - Investment period: Years 1–5 (deployment) - Harvest period: Years 6–12 (with 2-year extension) - Granularity: Annual (fund models don't need monthly; exit timing is inherently uncertain) - **Key drivers & assumptions:** - Fund size: $30M - Management fee: 2% avg on committed capital during investment period, tapering to ~1.5% on NAV/cost post-period - Carry: 20% - Number of investments: 35–40; model at 37 midpoint - Average initial check: $550k - Reserve ratio: ~30% of fund for follow-ons - Investment pace: Equal deployment over 5-year investment period - Exit timing: Avg 5–7 years from investment - Power law distribution: assume ~20% of deals drive ~80%+ of returns - Base MOIC (gross, portfolio-wide): 3.0x - Bull MOIC: 5.0x - Bear MOIC: 1.5x - Loss ratio: ~30–40% of deals return <1x - Fund expenses (legal, admin, audit): ~$150k–$200k/yr - Recycling: Not mentioned; assume no recycling - **Scenarios (Base / Bull / Bear - which variables flex):** - **Bear:** Gross MOIC 1.5x, no breakout exits, exit timing 8–10 yrs - LP likely underwater net of fees/carry - **Base:** Gross MOIC 3.0x, 2 breakout exits (5–10x), exit timing 6–8 yrs - delivers ~2.2x net to LP, ~20–25% gross IRR - **Bull:** Gross MOIC 5.0x+, 3–4 breakout exits (10–30x), exit timing 5–7 yrs - delivers ~3.5–4x net LP, 35%+ gross IRR - **Required sheets / outputs:** 1. **Assumptions** - fund size, fee schedule, carry terms, deployment pace, check size, reserve ratio, loss ratio 2. **Deployment schedule** - annual capital calls, investments made per year, total invested capital 3. **Management fee waterfall** - annual fee income to GP over fund life 4. **Portfolio build** - 37 companies × entry check, follow-on reserve, expected exit multiple (power law distribution across buckets: 0x, 0.5x, 1x, 3x, 5x, 10x, 20x) 5. **Exit schedule** - gross proceeds by year under Base/Bull/Bear 6. **LP waterfall** - return of capital → preferred return (hurdle) → catch-up → carry split 7. **GP economics** - total management fees + carried interest earned 8. **Summary KPIs** - Gross MOIC, Net MOIC, Gross IRR, Net IRR, DPI, TVPI, RVPI (by scenario) 9. **Sensitivity table** - Net MOIC vs (Gross MOIC × exit timing) matrix ## Frequently asked questions ### Is the Long Journey Ventures Fund I financial model free? Yes. The Long Journey Ventures Fund I 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.