Venture Capital & Growth Funds are talking to us a lot these days about reserves modeling. What exactly does that mean? When a fund makes an initial investment in a company, they often “reserve” capital for future investments in that same company as it grows.

With the typical fund making 15-20 (or more) investments, things can get complicated fast! That’s where our fund reserves modeling templates and experience comes in to play. Each fund’s investment strategy is a starting point for a specific template – we then customize it to create a thoughtful forecast.

Fund investors (LPs) are asking for this in diligence. Getting this right is an important driver of returns – just ask Fred Wilson @ Union Square Ventures!