SV

Susa Ventures IV Financial Model

• Two co-investment vehicles structured as a barbell:
• Susa IV ($100M seed fund): source/win best seed-stage deals; $1.25M avg check; 40 target investments; 1:1 reserve ratio for pro-rata in best companies
• Susa Opportunities II ($200M opportunity fund): lead/co-lead Series B & C in best-performing seed portfolio companies; $10M avg check; 15 target investments; 25% reserve for pro-rata
• Simultaneous commitment required at 1:2 ratio (Susa IV : Opp II)
• 10-year fund term + two 1-year extensions
• Investment thesis: back companies with compounding moats - proprietary data, network effects, economies of scale
• Susa Venture Fellows program (13 fellows, Sept 2020 cohort) as deal-sourcing and diversity pipeline
• 96 Founder NPS claimed

Not explicitly stated in deck. Standard VC economics apply:

• Management fees: typically 2% p.a. on committed capital during investment period, stepping down thereafter - exact fee terms not disclosed in deck
• Carried interest: typically 20% of profits above preferred return (hurdle) - not stated in deck
• LP commitment structure: simultaneous close at 1:2 ratio

Portfolio scale:

• 115+ Susa-backed companies
• $19B+ aggregate enterprise value of Susa companies
• $5B+ capital raised by Susa companies
• ~7,000 employees across Susa companies

Fund history - $395M total managed across all vehicles:

• Susa I: $25M fund, 2013 vintage - TOP 1% benchmark for 2013 vintage; specific MOIC/IRR redacted in deck
• Susa II: $50M fund, 2016 vintage - specific MOIC/IRR redacted
• Susa III: $90M fund, 2019 vintage - specific MOIC/IRR redacted
• Susa Opportunity Fund I: $50M fund, 2019 vintage - specific MOIC/IRR redacted
• Partner SPVs: 2014–present; specific count and total redacted; includes Robinhood, Flexport, Nest, Intercom

Portfolio quality metrics:

• Nearly 70% of Susa companies have raised a Series A (analysis of Susa I, 2013 vintage; source: CB Insights)
• 2.5x higher follow-on rate than the average seed fund (Pitchbook, 2013–2018 data, as of Q3 2019)
• >50% of Series A rounds led by top-tier firms (Founders Fund, Kleiner Perkins, USV, Addition, Sequoia, Benchmark, Index, a16z, NEA, Spark, Accel, Ribbit)

Power law:

• 20% of Susa seed investments drive 90% of returns (shown for both Susa I and Susa II via Pareto/power-law bar charts; specific portfolio company values redacted)

Opportunity Fund back-test:

• Back-test of Series B co-investment strategy across core seed portfolio: invested capital and FMV values redacted (shown as $###M placeholders); MOIC and TVPI redacted
• Back-test of SPV growth deals (Intercom, Blockchain.com, Zoox, Nest, Lendup, Expanse, PolicyGenius, Robinhood, Flexport): invested capital and FMV redacted; MOIC stated as "#.#x" - specific number redacted

Susa II portfolio companies: Stord, Viz.ai, Stedi, Sundae, Newfront Insurance, PEX, WorkRamp - all at Series B/C; individual cost basis and current values redacted

Susa III portfolio companies: Fast, Open, Medallion, Hallow, Gentem, Chapter, Lightyear, Honeybee - seed/Series A stage; values redacted

Susa Opportunity Fund I deployment: 12 investments made - Stord, Sundae, Viz.ai, Newfront, Expanse, Human Interest, Policygenius, Whoop, Omio, Nova Credit, Fast, Stedi, Mux - individual investment sizes redacted; called capital % redacted

Not applicable. This is a fund vehicle, not an operating company. Relevant "unit economics" are fund-level:

• Susa IV: $100M fund / 40 investments = $2.5M average deployed per company (split ~$1.25M initial + $1.25M reserve)
• Susa Opp II: $200M fund / 15 investments = $13.3M average deployed per company ($10M initial + $3.3M reserve at 25%)
• Follow-on rate: ~70% of seed portfolio companies raise Series A

• Firm moat framed as: proprietary deal flow + founder community ("Susa Family" ethos) + operator network
• Brand differentiation: high founder NPS (96), bootcamps, family dinners, Mountain Tech Summit, holiday giving, published playbooks
• Top-tier co-investor network: co-investors include Founders Fund, Kleiner, Sequoia, a16z, USV, Index, Addition, Benchmark at Series A
• Venture Fellows program as diversity/sourcing pipeline
• No direct competitor comparison slide in deck

Investment team:

• Chad Byers - GP, Co-founder (Robinhood, Stord, Policygenius)
• Leo Polovets - GP, Co-founder (Outlier, PEX, Scalyr, Stedi)
• Seth Berman - GP, Co-founder (Flexport, Viz.ai, Expanse, Fast)
• Courtney Buie Lipkin - Partner (prev. First Round Capital; Nova Credit, Lightyear)
• Misha Gordon-Rowe - Investor (prev. Funding Circle IPO 2018; Higo, Okra, Flock)
• Michael Stoppelman - Senior Advisor, Technical (former CTO, Yelp)

Operations team:

• Natalie Arora - Head of Operations (10 years, 3 startups incl. Eat Just)
• Rachel Coffman - EA & Operations (accountant, fundraising/IR expertise)

Funding ask:

• Susa Ventures IV: $100M target (seed fund)
• Susa Opportunities II: $200M target (opportunity fund)
• Simultaneous commitments at 1:2 ratio required

Use of funds: Deploy into ~40 seed companies (Susa IV) and ~15 growth-stage co-investments in best-performing Susa portfolio companies (Susa Opp II)

Service providers: Legal: Gunderson Dettmer; Banking: Silicon Valley Bank; Fund Admin: Aduro Advisors; Accounting: Frank, Rimerman + Co. LLP

• Archetype + why: VC Fund Economics model (dual-fund variant). This is a GP/LP fundraising deck for two parallel fund vehicles, not an operating company. The correct model simulates deployment schedules, management fee income, portfolio fair value build-up, DPI/TVPI evolution, and LP return waterfall (preferred return + carried interest split) for both funds simultaneously. A 3-statement or ARR model would be wrong here.

• Forecast horizon & granularity: 10-year fund life (2021–2031) + 2-year extension optionality; quarterly granularity for years 1–3 (active deployment), annual thereafter.

• Key drivers & assumptions:

*Susa IV ($100M seed fund):*

• Fund size: $100M
• Number of investments: 40
• Average initial check: $1.25M
• Reserve ratio: 1:1 (50% initial / 50% reserve)
• Management fee rate: 2.0% p.a. on committed capital
• Investment period: 3 years
• Follow-on rate to Series A: ~70%
• Loss rate (write-offs): ~40–50% of companies
• Portfolio MOIC - base case: 3.0x gross
• Carry: 20% above 8% preferred return

*Susa Opportunities II ($200M growth fund):*

• Fund size: $200M
• Number of investments: 15
• Average initial check: $10M
• Reserve: 25% for pro-rata
• Management fee rate: 1.5% p.a.
• Investment period: 4 years
• Entry stage: Series B / C in proven Susa seed graduates
• Portfolio MOIC - base case: 2.5x gross
• Carry: 20% above 8% preferred return

*Cross-fund:*

• LP commitment ratio: 1:2 (Susa IV : Opp II)
• Vintage: 2021

• Scenarios (Base / Bull / Bear - which variables flex):
• Bear: Portfolio MOIC 1.5x (IV) / 1.5x (Opp II); loss rate 55%; few exits in fund life
• Base: Portfolio MOIC 3.0x (IV) / 2.5x (Opp II); loss rate 45%; 2–3 fund-returners per fund
• Bull: Portfolio MOIC 5.0x (IV) / 3.5x (Opp II) driven by 1–2 breakout companies (Robinhood-scale); loss rate 35%
• Flex variables: gross MOIC, exit timing (hold period), management fee basis (committed vs. invested), carry hurdle

• Required sheets / outputs:

1. Assumptions - fund parameters, fee schedule, carry terms, deployment pace, MOIC scenarios
2. Deployment Schedule - capital calls by quarter, investment pace, reserve deployment
3. Management Fee P&L - fee income over fund life for each fund (GP entity economics)
4. Portfolio Build - per-company cost basis, stage, expected exit value, write-off flag; power-law distribution (top 20% driving 90%)
5. DPI / TVPI Waterfall - gross and net returns by year; preferred return accrual, carry calculation, LP net cash flows
6. LP Return Summary - IRR and MOIC by scenario for each fund and combined (1:2 blended)
7. Back-test Validation - simple tab recreating the Opp Fund back-test logic shown in slides 25–26 (invested capital vs. FMV by company)
8. Dashboard - KPI summary: fund sizes, deployment %, DPI, TVPI, gross/net IRR, management fee income