# Shrug Capital IV Financial Model Shrug Capital is a seed-stage venture capital fund (Fund IV) raising LP capital on the strength of its brand, network, and value-add track record. - Canonical: https://finamodel.com/startups/shrug-capital-iv - Excel download: https://finamodel.com/startup-models/shrug-capital-iv.xlsx - Category: Enterprise/Security - Model type: SaaS ARR / Valuation - Funding round: Fund 1 - Funding: $54M - Founded: 2021 - Geography: US-centric (San Francisco / New York); global portfolio. ## About the company Shrug Capital IV is a seed-stage venture fund raising LP capital, rather than an operating startup. The firm focuses on consumer and consumer-technology investing, relying on its network and value-add track record to source and support early portfolio companies. The economic engine is management fees on committed capital plus carried interest when investments exit successfully. The available research references earlier funds of roughly $3 million and $15 million, but does not disclose Fund IV's target size, so the model should keep that input explicit. The fund model schedules commitments, capital calls, investments, reserves, fees, portfolio marks, exits, and carry. It produces GP economics and LP returns, including DPI, TVPI, RVPI, and net IRR under ownership, dilution, exit-multiple, and timing scenarios. ## 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 - Shrug Capital invests small seed checks alongside top-tier co-investors (a16z, Benchmark, Founders Fund, Khosla, Lightspeed, Craft, etc.). - Differentiated value-add: brand/marketing stunts (Times Square billboards, swag, desk calendars), community distribution ("Shrug VIP" SMS/Community list), warm introductions to co-investors and strategics. - "Shrug VIP" - a distribution channel that sends portfolio company products/codes to a curated tech audience; cited as a key marketing mechanism for portfolio companies. - Key partners: Niv Dror (GP, founder) and Moshe Lifschitz (GP). Background: Niv previously at AngelList; prior to fund had audited Chris Sacca's Lowercase Capital. ## Revenue model Not explicitly stated in deck. Standard VC fund economics: - Management fee: typically 2% of committed capital per year during investment period, stepping down thereafter. - Carried interest: typically 20% of net profits above preferred return (hurdle). - Fund expenses passed through to LP vehicle. No specific fee terms, hurdle rate, or GP commit percentage are disclosed in the deck. ## Traction & metrics - Fund I size: ~$3M - Fund II size: ~$15M - Investments made across Fund I + II: ~50 startups - Notable portfolio companies mentioned (non-exhaustive): Superhuman, Cameo, Atoms, Haus, Alt, Superplastic, The Custom Movement, Eight Sleep, Poparazzi, June Homes, Lula, NewNew, Levels, Voiceflow, Snackpass, Batch, Cabal, Genies, Kapwing, Pipe, MainStreet, Fourthwall, Debtsy, buildspace, sound.xyz, Wise, Seated, Alula - Press: The Information feature ("Big Stunts, Small Checks: Shrug Capital's Unusual Rise," March 9, 2020) - No DPI, TVPI, MOIC, IRR, or portfolio valuation figures are disclosed anywhere in the deck. - No fund returns or exit data presented. ## Competition / moat - Moat articulated as: (a) network density - warm access to top-tier co-investors and deal flow; (b) brand - "one of the top consumer brands in venture"; (c) marketing/distribution value-add for portfolio companies (billboards, swag, Shrug VIP, Community SMS); (d) founder affinity - extensive testimonials from portfolio founders across slides 6–46. - Competitive landscape not formally addressed; deck positions Shrug as category-defining ("best marketing team in VC") rather than benchmarking against peers. ## Team & funding ask / use of funds - GPs: Niv Dror and Moshe Lifschitz - Niv Dror background: former accountant at Lowercase Capital (Chris Sacca); started Fund I ~2018 --- ## Recommended financial model - **Archetype + why:** Venture Fund Economics Model - management fee P&L + portfolio construction + carried interest waterfall. This is a VC LP pitch, not an operating company. The appropriate model is a fund-level financial model showing fee income, fund expenses, GP economics, and a simplified portfolio construction with exit scenarios to illustrate potential carried interest. No operating 3-statement or ARR model applies. - **Forecast horizon & granularity:** - Fund life: 10 years (standard VC); annual granularity - Investment period: Years 1–3 or 1–4 - Harvesting period: Years 4–10 - **Key drivers & assumptions:** - Fund size: Unknown; $40–60M for Fund IV given Fund II was $15M and typical step-up progression - open question, must confirm with GP - Management fee rate: 2.0% on committed capital during investment period, 2.0% on invested capital thereafter (common seed fund structure) - Carried interest: 20% above 8% preferred return (hurdle) - GP commit: 1–2% of fund - Number of investments: 50–80 seed checks (consistent with ~50 across Funds I+II) - Average check size: $250K–$750K seed (consistent with "small checks" positioning) - Reserve ratio for follow-ons: 30–40% of fund - Gross MOIC distribution - power law: 1–2 positions return 10x+; majority return 0–2x; modeled as a distribution across buckets - Exit timing: average 5–7 years from initial investment - Fund expenses: ~0.2–0.3% of fund size per year (legal, audit, admin) - **Scenarios (Base / Bull / Bear - which variables flex):** - **Base:** Fund at $50M; gross MOIC 3.0x on invested capital; carry distributed in years 6–10 - **Bull:** Fund at $60M; 1–2 breakout exits (10x+ companies like Cameo, Alt); gross MOIC 5.0x - **Bear:** Fund at $40M; vintage drag, no breakout exits; gross MOIC 1.5x (below preferred return = zero carry) - Flex variables: fund size, gross MOIC, exit timing, number of write-offs - **Required sheets / outputs:** 1. **Assumptions** - fund size, fee terms, carry terms, hurdle, portfolio construction inputs 2. **Management Fee P&L** - annual fee income, fund expenses, net GP management company income over 10 years 3. **Portfolio Construction** - number of investments, average check, reserves, % ownership model 4. **Exit Waterfall** - return of capital, preferred return, carried interest split by year 5. **GP Economics Summary** - total management fees + carry across fund life; net IRR to LP 6. **Scenario Toggle** - Base / Bull / Bear on MOIC and fund size ## Frequently asked questions ### Is the Shrug Capital IV financial model free? Yes. The Shrug Capital IV 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.