Founders: Fundraising is a game. Those who play it better, win. Think like a VC. Don't overcomplicate fundraising. Instead, try to get inside a VC's mind. Memos are the blueprint to VC investment decisions. Inside the memos are the benefits and risks of investing in a startup. If you know what's inside the memos, you can: - Highlight the positives - Mitigate the risks - Tell a better story Check out the Shopify investment memo from October 2010 crafted by Bessemer Venture Partners to see a great example memo. Curious to know what the components are of an early stage VC memo? Everything you need to know here: nicdetommaso.beehiiv.com/p/w… --- If you're looking to write memos and invest in startups with your peers, consider using Verivend as your platform to collect and invest funds. Think of it as your "venmo" for startup investing with peers. DM me or sign up for a demo here: verivend.com/vcdemystified?… ♻️ Repost to help someone in your network.

99% of ppl in VC interviews can’t explain how money actually flows thru a fund. Here’s the 3-min version that will put you in the top 1%. Most people think it’s simple: VCs raise money → invest in startups → make returns. But here’s how it actually works 👇 1. Limited Partners (LPs) - pension funds, endowments, family offices commit capital. 2. The General Partners (GPs) also commit their own money (usually ~1–2% of the fund). 3. Capital isn’t wired upfront - the fund makes capital calls over time as investments are made. 4. The fund (not the firm) owns equity in startups. 5. When there’s an exit, proceeds flow back into the fund. 6. First, LPs get their capital back + preferred return. 7. After that, GPs earn carry (their share of profits). And that’s the simplified version. In practice, you also have: - Multiple funds running in parallel, each with unique terms - Recycling of capital for follow-on investments - Complicated waterfall models for distributions - Ownership tracked across dozens of companies That’s why most firms lean on tools to keep it all clean. Without them, it’s spreadsheets on spreadsheets. I partnered with Verivend to help folks thinking about starting a fund do all these tasks more seamlessly. If I were to start a fund, this would be my go-to resource: verivend.com/?utm_source=VCD… Image source: DealRoom