Weekend Fund 3.0 Financial Model

• Weekend Fund invests in pre-seed/seed technology startups capitalizing on early consumer behavior or technology shifts.
• Key differentiation: Ryan Hoover's brand and network via Product Hunt (375K LinkedIn, 165K Twitter, 180K Clubhouse followers) drives inbound deal flow and helps portfolio companies with PR, fundraising introductions, and hiring.
• Intentionally small fund size to remain competitive in early-stage deals and write meaningful checks ($150K–$250K).
• Value-add to founders: intros to co-investors and lead investors for next rounds; PR and go-to-market support; NPS of 86 from portfolio founders.
• AngelList back-office platform handles fund administration.

This is a fund, not a product company. Economics are standard VC fund terms:

• Management fee: 2% average annual (front-loaded) on $18M fund size = ~$360K/yr average gross; front-loading means higher fees in early years.
• Carry: 20% carried interest on profits above hurdle.
• Back-office cost: $25K/yr fee to AngelList.
• Follow-on reserves: 30% of fund (~$5.4M) reserved for follow-on investments.
• Early-stage deployment: 70% of fund (~$12.6M) into ~45 companies at $150K–$250K per check. Implied average check: ~$280K (12.6M / 45).

• Fund 1 (Apr 2017–Jun 2019): 3.26x TVPI, 36.5% IRR
• Fund 2 (Jun 2019–Present): 2.73x TVPI, 117.6% IRR
• Combined Fund 1+2: 84 portfolio companies
• Performance as of April 2021; returns partially unrealized
• AngelList data (Jan 2021, n=107 funds, min 10 investments): Weekend Fund placed in the "Good" quadrant - top-right on both FundPerfCalc Percentile (~80th percentile) and Markups over Baseline Score (~1.3–1.5)
• Portfolio NPS from founders: 86 (surveyed annually 2018–2021)
• Founder helpfulness survey: 57% "one of the most helpful investors," 29% "more helpful than average," 14% "as helpful as average," 0% below average
• Select portfolio markups cited: Deel ~10.1x (WF1 seed → Series B); InVideo 3.3x in 3 months (WF2 → Sequoia India Series A); one redacted co 7x valuation since initial meeting
• MainStreet: $14M ARR in under 10 months; raised $60M Series A (SignalFire)

Not applicable as an operating business. Fund-level unit economics:

• Average check size: $150K–$250K
• Target companies per fund: ~45 early-stage
• Follow-on reserve ratio: 30%
• Management fee as % of AUM: ~2%/yr
• Carry rate: 20%

• Not framed as competitive analysis vs. other VC funds explicitly.
• Moat articulated as: brand/audience (Product Hunt community; Ryan's social following); proprietary deal flow from founders seeking WF before raising; ability to "sneak into" competitive rounds at a discount due to small check size; network of co-investors (a16z, Sequoia, Craft, Coatue, etc.).
• AngelList data cited as third-party validation of performance vs. 107 peer funds.

• Ryan Hoover - General Partner. Founder of Product Hunt (backed by a16z + YC, acquired by AngelList). Co-author of *Hooked*. Stepped down as Product Hunt CEO Oct 2020 to focus full-time on Weekend Fund.
• Vedika Jain - Chief of Staff. Former Stripe Analyst, first PM at TrueLayer (6→80 headcount). Prior VC at Mithril Capital, Kalaari Capital, Kairos Society. London-based.
• Fund ask: $18M target fund size (may fluctuate slightly based on demand).
• Use of funds:
• ~$12.6M (70%) → ~45 early-stage investments at $150K–$250K
• ~$5.4M (30%) → follow-on reserves (pro-rata in later rounds; SPVs for large follow-ons)
• Management fee: ~2%/yr average on $18M (front-loaded)
• $25K/yr → AngelList back-office
• Investment period: 24 months.
• LP communication: bi-monthly updates.

• Archetype + why: VC Fund Economics / LP Waterfall model. This is a fund raise, not an operating company. The right model is a fund-level cash flow and return waterfall - deploying capital, earning management fees, marking up/down a portfolio, then distributing proceeds via a carried-interest waterfall to GP and LPs.

• Forecast horizon & granularity:
• Investment period: Years 1–2 (24-month deployment)
• Hold period: Years 3–10 (typical pre-seed fund life ~10 years)
• Annual granularity for J-curve and cash flows; quarterly optional for deployment schedule

• Key drivers & assumptions:
• Fund size: $18M
• Early-stage allocation: 70% ($12.6M)
• Follow-on reserve: 30% ($5.4M)
• Number of portfolio companies: ~45
• Average initial check: $150K–$250K; model midpoint $200K; implied ~45 companies
• Management fee: 2% average annual, front-loaded; model as 2.5% yr1–2, 1.5% yr3–5, 1% yr6–10 to approximate "front-loaded"
• Carry: 20%
• Back-office fee: $25K/yr to AngelList
• Deployment pace: 24 months; ~22–23 investments/yr split evenly
• Follow-on deployment timing: years 3–6 as portfolio companies raise Series A/B
• Loss ratio: 40% of companies return <1x (standard pre-seed); 40% return 1x–5x; 20% are outliers (>5x) - informed by prior fund TVPI of 3.26x and 2.73x
• Target fund TVPI: 3.0x–3.5x based on Fund 1+2 track record
• Exit timeline: avg 5–7 years to liquidity event (M&A or IPO)
• Recycling: not mentioned no recycling modeled unless FAQ clarifies

• Scenarios (Base / Bull / Bear - which variables flex):
• Bear: Loss ratio 55%; outlier rate 10%; TVPI ~1.8x
• Base: Loss ratio 40%; outlier rate 20%; TVPI ~3.0x
• Bull: Loss ratio 30%; outlier rate 30%; TVPI ~4.5x
• Primary flex variables: loss ratio, outlier MOIC (e.g. 10x vs 20x), exit timing

• Required sheets / outputs:

1. Assumptions - fund terms, deployment schedule, fee schedule, loss/return distribution inputs
2. Deployment Schedule - capital called by year, check sizes, company count
3. Portfolio Returns - per-tranche MOIC distribution (loss / 1x–5x / outlier buckets), gross proceeds by year
4. Management Fee & Expenses - fee income to GP, AngelList fee, net fund expenses
5. J-Curve / Cash Flow - net cash flows to LPs (contributions + distributions) by year
6. Waterfall - LP preferred return, GP catch-up, carried interest split (20/80)
7. LP Summary - TVPI, DPI, RVPI, IRR by scenario
8. GP Economics - total management fees + carry by scenario
9. Dashboard - key outputs: fund TVPI, IRR, DPI, GP carry, LP net IRR vs gross IRR