Wischoff Ventures Fund III Financial Model

• Non-consensus, pre-seed / seed stage firm; invests in "relentless" high-growth companies.
• Four investment themes: Money ($3.5T GDP driver), Movement ($2.3T), Manufacturing ($2.7T), Marketplaces ($2.0T).
• Investment criteria: product & engineering founders with early-stage experience, no accelerators, self-sourced ideas, contrarian conviction.
• Value-add: brand/social-media sourcing, deep operator/VC network, community events (quarterly dinners, annual summit, monthly portfolio showcases).
• Deal origination: 50 LinkedIn DMs/week to senior PMs & engineers at Series C–pre-IPO companies; 40% response rate; ~15% later submit a deck. Warm inbound ~5 decks/day; cold inbound ~10 submissions/day via social.

• US GDP sector breakdown used to frame addressable opportunity:
• Financial Services: 21.0% of US GDP
• Manufacturing: 8.1%
• Transportation & Warehousing: 4.3%
• Retail Trade: 9.4%
• No external market-size growth rates cited. Investment themes mapped to GDP dollar figures:
• Money: $3.5T
• Manufacturing: $2.7T
• Movement: $2.3T
• Marketplaces: $2.0T
• No SAM/SOM segmentation provided.

Fund economics - two revenue streams:

1. Management fee: 2% per annum on committed capital.

• On $50M fund: ~$1.0M/year gross management fees.
• Typical 10-year fund life; fees often step down after investment period (years 1–5).

1. Carried interest: 20% of profits above cost basis.

• Performance ratchet: 25% carry at 5x fund performance.
• Standard 8% preferred return / hurdle assumed.

No fund-level hurdle rate, preferred return percentage, or clawback terms disclosed beyond the above.

Fund I (2021 vintage):

• Fund size: $5M
• Investments: 26
• Mark-ups: 16 (61.5% mark-up rate)
• MOIC: 1.40x gross
• Gross IRR: 19.6%
• Average check size: $150,000
• Average ownership: 0.70%

Fund II (2022 vintage):

• Fund size: $20M
• Investments: 15
• Mark-ups: 3 (20% mark-up rate - early vintage, still deploying)
• MOIC: 1.22x gross
• Gross IRR: 25.83%
• Average check size: $650,000
• Average ownership: 4.5% (4.35% shown on ownership evolution chart)

Portfolio momentum:

• Fund I & II investments raised >$140M in follow-on capital from top funds (Q4 2021–Q1 2024)
• Quarterly follow-on capital raised ($ millions): Q4 21: $0.7 | Q1 22: $2.1 | Q2 22: $19.0 | Q3 22: $2.0 | Q4 22: $5.0 | Q1 23: $25.0 | Q2 23: $35.0 | Q3 23: $6.0 | Q4 23: $35.0 | Q1 24: $10.0
• Capital invested per quarter ($ millions): Q4 21: $0.7 | Q1 22: $0.8 | Q2 22: $0.7 | Q3 22: $1.5 | Q4 22: $1.4 | Q1 23: $1.9 | Q2 23: $0.6 | Q3 23: $1.7 | Q4 23: (not legible) | Q1 24: (not legible)

Deal flow:

• Q4 2021–Q4 2023 quarterly data:
• Total deals funded in market: 850 → 1,700 → 1,600 → 1,400 → 1,300 → 650 → 500 → 400 → 350
• Deals seen by WV: 112 → 189 → 212 → 209 → 222 → 98 → 76 → 69 → 68
• Deals done: 7 → 5 → 4 → 4 → 2 → 2 → 3 → 1 → 2

Select investments - MOICs:

• Highest marks: 8x (Mortgage/Seed), 4.33x (Ecommerce/Pre-Seed), 4x (Manufacturing/Pre-Seed), 3x (Movement/Pre-Seed), 2.33x (Retail/Seed), 2.13x (Money/Seed), 1.90x (Movement/Series A), 1.74x (Marketplace/Seed), 1.46x (Manufacturing/Pre-Seed), 1.45x (Movement/Series A), 1.22x (Money/Pre-Seed)

Ownership evolution:

• Fund I average ownership: 0.70%
• Fund II average ownership: 4.35%; range 2.0%–6.7% across deals

• Management fee yield: 2% × $50M = $1.0M/year gross
• Carried interest on 5x exit: 25% × ($250M proceeds − $50M cost) = $50M carry
• Average check size Fund III: Core $800K–$1.6M; Collaborative $500K
• Target ownership: 7–10% per investment
• Target portfolio: ~30–35 positions
• Reserve allocation: 20% of fund (~$10M) reserved for follow-ons
• Investable capital (ex-mgmt fees over 10 yrs): ~$40M net of ~$10M management fees
• Deal sourcing cost: not quantified in deck

• Co-investors include Founders Fund (2x), a16z (2x), Bain Capital Ventures (3x), Susa Ventures (6x), DST Global (2x), Accel (2x), Greylock (2x), Lightspeed (1x), Insight Partners (1x).
• LP base includes Cendana Capital, Insight Partners, Bain Capital Ventures, Thrive Capital, Industry Ventures, Crossover, Peter Thiel, Jerry Yang, Lee Fixel, David Tisch.
• Moat claimed via: brand/social media presence, operator network, proprietary outbound sourcing (LinkedIn DM engine), community events.
• Nichole Wischoff (Founder & GP) previously VP Strategy at ONE (acquired by Walmart/Ribbit JV 2022), VP at Built (raised Series D $125M at $1.5B, 2021), Special Projects at Blend (IPO 2021, NYSE:BLND).

Team:

• Nichole Wischoff - Founder & GP (sole named principal)
• Hiring in 2024: TBD Venture Partner (West Coast), TBD Analyst (Remote)

Funding ask:

• Fund III target: $50M
• No minimum LP commitment, close schedule, or current close amount disclosed in deck

Use of funds (derived from portfolio construction slide):

• ~80% investable capital (~$40M after mgmt fees): deployed across ~30–35 positions
• 70% core checks: $800K–$1.6M each
• 30% collaborative: $500K each
• 20% reserves (~$10M) for follow-on

• Archetype: VC fund economics model - management fee P&L + carried interest waterfall + portfolio construction simulator. This is a fund LP pitch, not an operating startup. The correct model type is a fund-level financial model, not a 3-statement operating forecast.

• Forecast horizon & granularity:
• Investment period: Years 1–5 (quarterly deployment)
• Harvest period: Years 6–10
• Total model horizon: 10 years annual, with quarterly detail in deployment phase

• Key drivers & assumptions:
• Fund size: $50M
• Management fee: 2% p.a. on committed capital (investment period), stepping to 2% on invested capital or NAV post-investment period
• Carried interest: 20% base; 25% at 5x gross MOIC
• Preferred return / hurdle rate: 8%
• Number of investments: 30–35 positions
• Core check size: $800K–$1.6M (midpoint ~$1.2M)
• Collaborative check size: $500K
• Portfolio mix: 70% core / 30% collaborative
• Reserve allocation: 20% of fund = $10M
• Target ownership at entry: 7–10%
• Deployment pace: ~5–8 investments/year over 5-year investment period
• Gross MOIC distribution (power law): modelled as loss (0x), write-off (0.5x), flat (1x), moderate (2–3x), breakout (8–10x) cohorts
• Realized exit timing: median 5–7 years from entry
• Follow-on capital ratio: ~10–15x invested capital raised by portfolio

• Scenarios (Base / Bull / Bear):
• Flex variables: gross MOIC distribution across portfolio (power law shape), exit timing, number of positions, reserve deployment rate
• Bear: 1.5x gross MOIC overall (no breakout), exits slow 7–10 yrs
• Base: 2.5–3x gross MOIC overall, 1–2 breakout companies (5–8x), exits at 5–7 yrs - consistent with Fund I trajectory improving
• Bull: 4–5x gross MOIC overall (3+ breakouts at 8–10x), exits at 4–6 yrs - 25% carry ratchet triggered

• Required sheets / outputs:

1. Assumptions - fund terms, portfolio construction inputs, scenario toggle
2. Deployment Schedule - quarterly investment pace, check sizes, stage mix
3. Portfolio Model - company-level MOIC distribution, exit timing, realized proceeds
4. Management Fee P&L - gross fees, fund expenses, net management fee income by year
5. Carried Interest Waterfall - preferred return, catch-up, carry split (base 20% / ratchet 25%)
6. LP Returns - DPI, TVPI, net IRR by scenario
7. GP Economics - total GP economics (mgmt fees net + carry) by scenario
8. Dashboard - summary KPIs: fund size, # investments, MOIC, gross/net IRR, DPI, TVPI