# Wischoff Ventures Fund III Financial Model

Early-stage VC fund (Fund III) targeting pre-seed and seed investments at the intersection of money, movement, and manufacturing in North America.

- Canonical: https://finamodel.com/startups/wischoff-ventures-fund-iii
- Excel download: https://finamodel.com/startup-models/wischoff-ventures-fund-iii.xlsx
- Category: Hardware/Deep-tech
- Model type: SaaS ARR / Valuation
- Funding round: Fund III
- Funding: $50M
- Founded: 2024
- Geography: North America focus; HQ Nashville, TN; portfolio companies across US, Canada [DECK, slide 4].
- Customer: B2B

## About the company

Wischoff Ventures Fund III is a $50 million pre-seed and seed fund focused on high-growth North American companies. Its investment themes are money, movement, manufacturing, and marketplaces, and it seeks product and engineering founders with self-sourced ideas.

The fund combines conventional LP/GP economics with an operator-led sourcing and portfolio-support model. Management fees are 2% annually on committed capital, while carried interest is 20% of profits above cost basis, rising to 25% at 5x performance. The target portfolio is about 30 to 35 positions, with 20% reserved for follow-ons.

Model commitments, closes, fees, fund expenses, quarterly deployment, reserves, check sizes, ownership, and exits over a ten-year horizon. Build a portfolio-level MOIC distribution and carry waterfall, then calculate LP DPI, TVPI, net IRR, and GP economics. Fund size, deployment pace, exit timing, breakout outcomes, reserve use, and carry terms should drive 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

- 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.

## Market

- 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.

## Revenue model

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).

2. **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.

## Traction & metrics

**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

## Unit economics

- 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

## Competition / moat

- 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 & funding ask / use of funds

**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

## Recommended financial model

- **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

## Frequently asked questions

### Is the Wischoff Ventures Fund III financial model free?

Yes. The Wischoff Ventures Fund III 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.