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Rolling Venture Fund

Rolling Venture Fund

Rolling venture funds are a new type of venture capital fund structure released by AngelList in February 2020.

All edits by  Jason D. Rowley 

Edits on 9 Sep, 2020
Jason D. Rowley
Jason D. Rowley edited on 9 Sep, 2020
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On February 5, 2020, AngelList formally announced the launch of a new investment serviceproduct offering: rolling venture funds.

Jason D. Rowley
Jason D. Rowley edited on 9 Sep, 2020
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Rolling Venture Fund

Rolling venture funds isare a new type of venture capital fund structure released by AngelList in February 2020.

Edits on 19 Aug, 2020
Jason D. Rowley
Jason D. Rowley edited on 19 Aug, 2020
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Timeline (+1 events) (+44 characters)
Timeline

February 5, 2020

AngelList launches its Rolling Funds product
Edits on 19 Aug, 2020
Jason D. Rowley
Jason D. Rowley edited on 19 Aug, 2020
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Title
Author
Link
Type
Date

'There's a huge level of innovation happening with Rolling Funds': Gumroad CEO on Launching His First $1M+ per quarter Rolling Fund on AngelList

AngelList

Web

August 5, 2020

Micro, solo and vocal: The new million-dollar lone-wolf VCs

Biz Carson

Web

July 25, 2020

Edits on 18 Aug, 2020
Jason D. Rowley
Jason D. Rowley edited on 18 Aug, 2020
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Title
Date
Link

Rolling Fund - Next big thing in Finance | Venture Capital

Jason D. Rowley
Jason D. Rowley edited on 18 Aug, 2020
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AngelList Launches 'Rolling Venture Fund' In Bid To Make Fundraising Easier For New VCs

Alex Konrad

Web

February 5, 2020

Jason D. Rowley
Jason D. Rowley edited on 18 Aug, 2020
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Jason D. Rowley
Jason D. Rowley edited on 17 Aug, 2020
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What is the Fee Structure?
Fee Structure

Generally, the fund manager sets the fee structure for terms like carried interest and management fees. Generally these tend to follow industry standard "2 and 20" fund model, which means management fees are charged at 2% per year over the life of the fund (calculated and charged quarterly), plus 20% carry. Although different fund arrangements can certainly be made. AngelList also charges a "platform administrative fee" for its services. As of August 2020, here are the costs:

As of August 2020, the fees include:

...
Are Rolling Funds vs. Evergreen Funds?

Rolling funds are often confused with evergreen funds. An evergreen fund is an open-ended fund structure that permits redemptions and liquidity rights for investors to exit the fund. In addition, fund managers are permitted to recycle capital from realized returns, hence the term "evergreen."

Not exactly. Rolling funds are often confused with evergreen funds. An evergreen fund is an open-ended fund structure that permits redemptions and liquidity rights for investors to exit the fund. In addition, fund managers are permitted to recycle capital from realized returns, hence the term "evergreen." However, this structure is unrelated to rolling funds because (i) applicable venture capital law in the United States does not permit redemptions from investors (see Rule 203(l)-1 of the Investment Advisers Act, which prohibits redemption rights other than in extraordinary circumstances); and (ii) each rolling venture fund is actively investing for only one quarter.

Edits on 6 Aug, 2020
Jason D. Rowley
Jason D. Rowley edited on 6 Aug, 2020
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With a Rolling Venture Fund, emerging managers require less capital to start investing, while experienced managers can continuously accept new capital commitments, giving them an increasing stream of capital to invest in great startups. In either case, with a Rolling Venture Fund, a fund manager willmay never need to raise another fund again.

Edits on 12 May, 2020
Jason D. Rowley"Approved suggestion #840971 from source: https://angel.co/blog/rolling-venture-fund-launch"
Jason D. Rowley approved a suggestion from Golden's AI on 12 May, 2020
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Jason D. Rowley"Approved suggestion #840972 from source: https://angel.co/blog/rolling-venture-fund-launch"
Jason D. Rowley approved a suggestion from Golden's AI on 12 May, 2020
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Jason D. Rowley
Jason D. Rowley approved a suggestion from Golden's AI on 12 May, 2020
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Traditionally, venture capital fundventure capital fund managers had to raise capital through a closed-end fund model. This means that, during the fundraising process, a fund manager would have to secure capital commitments from limited partners representing the sum total of the manager's fundraising target for that particular fund. Traditionally, general partners in a venture capital fund negotiate a "subscription agreement" with their limited partners. Instead of LPs disbursing assets in a lump sum, GPs usually receive LP money through scheduled capital calls.

Jason D. Rowley
Jason D. Rowley approved a suggestion from Golden's AI on 12 May, 2020
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On February 5, 2020, AngelListAngelList formally announced the launch of a new investment service offering: rolling venture funds.

Jason D. Rowley
Jason D. Rowley edited on 12 May, 2020
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Rolling Venture Fund

Rolling venture funds is an evergreen venture capital fund product released by AngelList in February 2020.

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Jason D. Rowley
Jason D. Rowley edited on 12 May, 2020
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Rolling Venture Fund

Rolling venture funds are a new type of venture capital fund structure released by AngelList in February 2020.

Article

On February 5, 2020, AngelList formally announced the launch of a new investment service offering: rolling venture funds.

AngelList asserts that its rolling funds offering brings high-resolution fundraising to the general partnership side of the venture landscape.

High-resolution fundraising for General Partners

Through investment vehicles like convertible notes and simple agreements for future equity (SAFEs), startup founders have been able to raise capital in small chunks over time, potentially at different valuations pending progress in their business.

Traditionally, venture capital fund managers had to raise capital through a closed-end fund model. This means that, during the fundraising process, a fund manager would have to secure capital commitments from limited partners representing the sum total of the manager's fundraising target for that particular fund. Traditionally, general partners in a venture capital fund negotiate a "subscription agreement" with their limited partners. Instead of LPs disbursing assets in a lump sum, GPs usually receive LP money through scheduled capital calls.

...

With a Rolling Venture Fund, emerging managers require less capital to start investing, while experienced managers can continuously accept new capital commitments, giving them an increasing stream of capital to invest in great startups. In either case, with a Rolling Venture Fund, a fund manager will never need to raise another fund again.

Infobox
Is a
Launch date
February 5, 2020
Product parent company
AngelList
Edits on 12 May, 2020
Jason D. Rowley"Initial creation data"
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Jason D. Rowley"Created via: Web app"
Jason D. Rowley created this topic on 12 May, 2020
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 Rolling Venture Fund

Rolling venture funds are a new type of venture capital fund structure released by AngelList in February 2020.

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