V4 of the Employee's Guide coming soon!
I am building the next version of The Employee’s Guide to Employee Led SPVs.
Employees find it difficult to ask their CEO for allocation.
I will provide the employee with a detailed script to email to the CEO. The script asks if the employee can loop me into the conversation. I will then handle the conversation with the CEO.
Employees don't have the time and/or energy to create deal materials (deal outline, memo, etc.)
I will create these materials with the employee's help. I will also ask the CEO for the most recent fundraising deck.
Employees do not want to form syndicates or SPVs
I will form the SPV as the lead advisor with the employee as a carry recipient.
Employees can often buy shares from existing holders (secondary transactions, "secondaries", etc.)
I have designed a new process for secondaries. The process is like the current process with a few extra steps. I will help the employee
Confirm seller interest
Negotiate pricing with sellers
Get company approval for the transfer
Employees find the fundraising pitches to be a large time burden. The pitches are usually meetings, phone calls, Zooms, etc.
I have designed an asynchronous batch fundraising process. The employee will conduct 5-6 batch operations across most of their network. I estimate reducing the need for meetings/phone calls/Zooms/etc by at least 80%.
The employee sends an email with a blurb and qualification form to their network. Suitable investors get access to a detailed deal outline.
The investor reviews the deal outline and submits an Indicator of Interest (IOI) form. The IOI asks about decision making process, average check size, investing entity, etc.
The investor will receive access to the deal memo and deck after submitting an IOI. The investor can add comments to the memo. The employee and I will respond to comments in-line and merge updates to the memo.
The investor can submit a soft commit via a form in the deal memo.
Once the employee has secured $100k in soft commits, I will form the SPV
I will then send the SPV funding portal link to all the soft committed investors
After the employee's network has finished wiring funds, I will then share the deal to my network of LPs.
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