As part of Venture Institute, I have an exercise this week to ask some questions I had after reading through the Cornerstone LPA. Let me know if you have any insights. Thank you!
- I’d like to better understand why a GP would want to create an SPV alongside the main fund and why the clause in the LPA allowing this is important.
- Legally, how locked in is an LP's money once it's invested in venture? I didn't quite understand the legal limits from the LPA.
- In terms of how carry is distributed, what are the pros and cons of the American vs European (Deal-by-Deal and Whole-of-Fund) distribution? Do certain jurisdictions mandate the use of one over the other?
