Scribd
Upload
462 views

Venture Studio

The document compares the cash flows, returns, and fees for different investment strategies (4X, 5X, 7X, 10X, 100X) over 5 or 10 year lock-in periods. It shows that higher risk strategies (e.g. 100X) have the potential for much larger returns (CAGR over 50%) but also more downside risk, while more conservative strategies (e.g. 4X) have lower returns in the 15-25% range but more stable outcomes. The document also outlines different fee structures for the investment managers including management fees and profit participation rates.

Uploaded by

Anil Kumar Prasanna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
462 views

Venture Studio

The document compares the cash flows, returns, and fees for different investment strategies (4X, 5X, 7X, 10X, 100X) over 5 or 10 year lock-in periods. It shows that higher risk strategies (e.g. 100X) have the potential for much larger returns (CAGR over 50%) but also more downside risk, while more conservative strategies (e.g. 4X) have lower returns in the 15-25% range but more stable outcomes. The document also outlines different fee structures for the investment managers including management fees and profit participation rates.

Uploaded by

Anil Kumar Prasanna
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
You are on page 1/ 6

4X 5X 7X

Amount Raised $10,000,000.00 $10,000,000.00 $10,000,000.00


Target Return $40,000,000.00 $50,000,000.00 $70,000,000.00
Lock in Period 5 Years 5 Years 5 Years

Year Cash Flow 4X 1 Cash Flow 4X 2 Cash Flow 4X 3


2021 -$10,000,000.00 -$10,000,000.00 -$10,000,000.00
2022 $0.00 $0.00 $0.00
2023 $0.00 $0.00 $0.00
2024 $0.00 $0.00 $0.00
2025 $23,000,000.00 $22,000,000.00 $19,500,000.00

Fee Models Management Fee Profit Cutoff (4X) Total


2% M - 20% P $1,000,000.00 $6,000,000.00 $7,000,000.00
1% M - 25% P $500,000.00 $7,500,000.00 $8,000,000.00
0% M - 35% P $0.00 $10,500,000.00 $10,500,000.00
5% MAP - 15% P $0.00 $5,000,000.00 $5,000,000.00
10% MAP - 20% P $0.00 $7,000,000.00 $7,000,000.00
20% MAP - 30% P $0.00 $11,000,000.00 $11,000,000.00

Year Cash Flow 5X 1 Cash Flow 5X 2 Cash Flow 5X 3


2021 -$10,000,000.00 -$10,000,000.00 -$10,000,000.00
2022 $0.00 $0.00 $0.00
2023 $0.00 $0.00 $0.00
2024 $0.00 $0.00 $0.00
2025 $31,000,000.00 $29,500,000.00 $26,000,000.00

Fee Models Management Fee Profit Cutoff (5X) Total


2% M - 20% P $1,000,000.00 $8,000,000.00 $9,000,000.00
1% M - 25% P $500,000.00 $10,000,000.00 $10,500,000.00
0% M - 35% P $0.00 $14,000,000.00 $14,000,000.00
5% MAP - 15% P $0.00 $6,500,000.00 $6,500,000.00
10% MAP - 20% P $0.00 $9,000,000.00 $9,000,000.00
20% MAP - 30% P $0.00 $14,000,000.00 $14,000,000.00

Year Cash Flow 7X 1 Cash Flow 7X 2 Cash Flow 7X 3


2021 -$10,000,000.00 -$10,000,000.00 -$10,000,000.00
2022 $0.00 $0.00 $0.00
2023 $0.00 $0.00 $0.00
2024 $0.00 $0.00 $0.00
2025 $47,000,000.00 $44,500,000.00 $39,000,000.00

Fee Models Management Fee Profit Cutoff (7X) Total


2% M - 20% P $1,000,000.00 $12,000,000.00 $13,000,000.00
1% M - 25% P $500,000.00 $15,000,000.00 $15,500,000.00
0% M - 35% P $0.00 $21,000,000.00 $21,000,000.00
5% MAP - 15% P $0.00 $9,500,000.00 $9,500,000.00
10% MAP - 20% P $0.00 $13,000,000.00 $13,000,000.00
20% MAP - 30% P $0.00 $20,000,000.00 $20,000,000.00

Year Cash Flow 10X 1 Cash Flow 10X 2 Cash Flow 10X 3
2021 -$10,000,000.00 -$10,000,000.00 -$10,000,000.00
2022 $0.00 $0.00 $0.00
2023 $0.00 $0.00 $0.00
2024 $0.00 $0.00 $0.00
2025 $70,600,000.00 $66,800,000.00 $58,500,000.00

Fee Models Management Fee Profit Cutoff (10X) Total


2% M - 20% P $1,400,000.00 $18,000,000.00 $19,400,000.00
1% M - 25% P $700,000.00 $22,500,000.00 $23,200,000.00
0% M - 35% P $0.00 $31,500,000.00 $31,500,000.00
5% MAP - 15% P $0.00 $14,000,000.00 $14,000,000.00
10% MAP - 20% P $0.00 $19,000,000.00 $19,000,000.00
20% MAP - 30% P $0.00 $29,000,000.00 $29,000,000.00

Year Cash Flow 100X 1 Cash Flow 100X 2 Cash Flow 100X 3
2021 -$10,000,000.00 -$10,000,000.00 -$10,000,000.00
2022 $0.00 $0.00 $0.00
2023 $0.00 $0.00 $0.00
2024 $0.00 $0.00 $0.00
2025 $790,000,000.00 $741,500,000.00 $643,500,000.00

Fee Models Management Fee Profit Cutoff (100X) Total


2% M - 20% P $2,000,000.00 $198,000,000.00 $200,000,000.00
1% M - 25% P $1,000,000.00 $247,500,000.00 $248,500,000.00
0% M - 35% P $0.00 $346,500,000.00 $346,500,000.00
5% MAP - 15% P $0.00 $149,000,000.00 $149,000,000.00
10% MAP - 20% P $0.00 $199,000,000.00 $199,000,000.00
20% MAP - 30% P $0.00 $299,000,000.00 $299,000,000.00
10X 100X
$10,000,000.00 $10,000,000.00
$100,000,000.00 $1,000,000,000.00
7 Years 10 Years

Cash Flow 4X 4 Cash Flow 4X 5 Cash Flow 4X 6


-$10,000,000.00 -$10,000,000.00 -$10,000,000.00
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$25,000,000.00 $23,000,000.00 $19,000,000.00

Returns to Investor Group (4X) CAGR (4X) IRR (4X)


$23,000,000.00 18.13% 23.15%
$22,000,000.00 17.08% 21.79%
$19,500,000.00 14.29% 18.17%
$25,000,000.00 20.11% 25.74%
$23,000,000.00 18.13% 23.15%
$19,000,000.00 13.70% 17.41%

Cash Flow 5X 4 Cash Flow 5X 5 Cash Flow 5X 6


-$10,000,000.00 -$10,000,000.00 -$10,000,000.00
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$33,500,000.00 $31,000,000.00 $26,000,000.00

Returns to Investor Group (5X) CAGR (5X) IRR (5X)


$31,000,000.00 25.39% 32.69%
$29,500,000.00 24.16% 31.06%
$26,000,000.00 21.06% 26.98%
$33,500,000.00 27.35% 35.29%
$31,000,000.00 25.39% 32.69%
$26,000,000.00 21.06% 26.98%

Cash Flow 7X 4 Cash Flow 7X 5 Cash Flow 7X 6


-$10,000,000.00 -$10,000,000.00 -$10,000,000.00
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$50,500,000.00 $47,000,000.00 $40,000,000.00

Returns to Investor Group (7X) CAGR (7X) IRR (7X)


$47,000,000.00 36.28% 47.24%
$44,500,000.00 34.79% 45.24%
$39,000,000.00 31.28% 40.53%
$50,500,000.00 38.25% 49.91%
$47,000,000.00 36.28% 47.24%
$40,000,000.00 31.95% 41.42%

Cash Flow 10X 4 Cash Flow 10X 5 Cash Flow 10X 6


-$10,000,000.00 -$10,000,000.00 -$10,000,000.00
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$76,000,000.00 $71,000,000.00 $61,000,000.00

Returns to Investor Group (10X) CAGR (10X) IRR (10X)


$70,600,000.00 32.21% 63.01%
$66,800,000.00 31.17% 60.77%
$58,500,000.00 28.70% 55.52%
$76,000,000.00 33.61% 66.04%
$71,000,000.00 32.31% 63.24%
$61,000,000.00 29.48% 57.16%

Cash Flow 100X 4 Cash Flow 100X 5 Cash Flow 100X 6


-$10,000,000.00 -$10,000,000.00 -$10,000,000.00
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$0.00 $0.00 $0.00
$841,000,000.00 $791,000,000.00 $691,000,000.00

Returns to Investor Group (100X) CAGR (100X) IRR (100X)


$790,000,000.00 54.80% 198.13%
$741,500,000.00 53.82% 193.45%
$643,500,000.00 51.65% 183.23%
$841,000,000.00 55.77% 202.83%
$791,000,000.00 54.82% 198.23%
$691,000,000.00 52.74% 188.32%
TRADITIONAL MODEL

OPEX Annual Cost Profit Sharing % Equity Range UPSIDE


CEO/COO $40,000.00 70% 26-40% Medium
CFO/Controller/Accountant $40,000.00 20%
Associate/Principal $20,000.00 10%
Legal/Compliance/Tax $25,000.00
Total $125,000.00
Buffer 20%
Annual Total Costs $150,000.00 Min Fund Size $7,500,000.00 55 crore

VENTURE STUDIO IDEALLY INVEST IN BUSINESS WITH HIGH UPSIDE & LOW DOWNSID

OPEX Annual Cost Profit Sharing % Equity Range UPSIDE


CEO/COO $40,000.00 55% 76 % - 90 % High
CFO/Controller/Accountant $40,000.00 20%
CTO $40,000.00 10% Need tech subscription to survive.
Enginnering $100,000.00 10% High initial cost operational costs d
Associate/Principal $20,000.00 5% Possibility of generating Intellectua
Legal/Compliance/Tax $25,000.00 Can support other funds running in
Total $265,000.00 Wider moat and stickiness
Buffer 20%
Annual Total Costs $318,000.00 Min Fund Size $15,900,000.00 116 crore

SAFE PLAY
OPEX Annual Cost Profit Sharing % Equity Range UPSIDE
CEO/COO $60,000.00 50% 5-15% High
CFO/Controller/Accountant $60,000.00 25%
Associate/Principal $40,000.00 15%
Legal/Compliance/Tax $40,000.00
Total $200,000.00
Buffer 20%
Annual Total Costs $240,000.00 Min Fund Size $12,000,000.00 90 crore
DOWNSIDE GAP ANALYSIS TRADITIONAL STUDIO MODEL SAFE PLAY
Low 2% M - 20% P $250,000.00 -$590,000.00 -$200,000.00
1% M - 25% P -$250,000.00 -$1,090,000.00 -$700,000.00
0% M - 35% P -$750,000.00 -$1,590,000.00 -$1,200,000.00
5% MAP - 15% P -$750,000.00 -$1,590,000.00 -$1,200,000.00
10% MAP - 20% P -$750,000.00 -$1,590,000.00 -$1,200,000.00
20% MAP - 30% P -$750,000.00 -$1,590,000.00 -$1,200,000.00

UPSIDE & LOW DOWNSIDE

DOWNSIDE
Low

ech subscription to survive.


itial cost operational costs drop down as years roll by
lity of generating Intellectual Property
pport other funds running in traditonal model and safe play giving you insights to a larger market and better deals
moat and stickiness

DOWNSIDE
Medium

You might also like