What are Lilypads Venture Funds?

Lilypads Venture Funds are a series of sequentially formed investment vehicles that are privately offered and pooled among fund managers who share their deal flow with LPs on a quarterly subscription basis with carried interest over two years.

What are the services and benefits of Lilypads venture funds?

With Lilypads Venture Funds, LPs can enjoy a seamless and streamlined investing experience with a wide range of services including:

 

  • A detailed real-time insight into their Portfolio through their Investor Network Profile (INP)
  • Automated valuation updates
  • Direct deal invitations to exclusive Lilypads LPs and Sponsors.
  • Online distributions and capital calls
  • Tax docs and K-1s

How do LP subscriptions work?

LPs can subscribe to a fund manager’s Venture Funds through the Lilypads platform. 

 

Once they subscribe to the Lilypads Venture Funds, the LP commits to the next quarterly fund as well through auto-renewal, unless the LPs cancel their subscription.

How are subscriptions funded?

Subscriptions can be funded through Wire or ACH transfer using the information that is submitted on the Lilypads platform. 

 

The LPs must ensure that the funding is closed before the deadline that is indicated on the platform. If an LP subscribes through ACH, but the LP’s Lilypads account balance does not cover the LP’s entire subscription, the outstanding balance gets transferred automatically through ACH from the LP’s bank account on the funding deadline date itself.

 

The LPs are generally required to transfer their subscription amount every quarter. However, if the initial closing of the program occurs in the middle of a fiscal quarter, the period between the first and second transfers will be less than a quarter.

Can LPs increase, decrease, or cancel their subscription?

For those venture funds that do not have a minimum quarterly commitment fee, LPs can increase, decrease or cancel the subscription at any given time according to the requirements of that particular program. Unless the subscriptions are canceled, modified, or rejected, the LP subscription will automatically get auto-renewed for successive funds.

 

However, in some cases, the LPs cannot cancel or decrease their subscription before they complete their minimum quarterly commitment. Such scenarios occur in the cases of those funds that have a minimum number of quarters that the LP must commit to. Nevertheless, there are no rules which prohibit increasing their subscription amount.

Can LPs opt-out of deals in the Lilypads Venture Funds?

The LPs cannot opt-out of deals within the Lilypads Venture Funds’ annual subscription.

Can LPs get exposure to the deals at the start of the fund?

The LPs who have subscribed, can only get exposure to the deals in the quarters that they are subscribed to.

This help page and the information contained herein is provided for informational and discussion purposes only and is not intended to be a recommendation for any investment or other advice of any kind, and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.

Investing in venture capital funds is inherently risky and illiquid. It involves a high degree of risk and is suitable only for sophisticated and qualified investors.