Your fund is a VC fund in software services sector, where you are a general partner (GP). Your optimal portfolio size^[1] is 10 ventures for this current fund of 11MM raised from your LPs.

Company = {1, 2, 3, 4, 5, 6, 7, 8, 9, 10} ventures

After doing Berkus method based due diligence on 100 potential investments, you write checks according to below configuration for each fund.

Invested capital I = {0.5, 1, 2, 1, 0.5, 2, 1, 0.75, 1.25, 1} MM for F =

To your Fund's Limited Partners and investors, you showcase a projected DPI ratio based on your analyses of likely (projected) exit scenarios for the portfolio and exit multipliers for fund's sector:

E_proj = {GS, L, BH, B, GS, BH, L, B, L, GS}

Exit multiplier per scenario

{L = 0

B = 1.75

BH = 2.55

HR = 18

GS = 50}

Total Amount Invested (paid-in capital) in fund ($MM): _____________

Average investments ($) and percentage of fund, per company: _____________

Projected Amount of Capital Returned ($MM): _____________

Projected Distributed to Paid-In (DPI) Capital Ratio: _____________

Combined exit multiple projection: _____________

However, in Year 3, when your investment timeframe is up, you observe the following actual exits

E_act = {GS, BH, B, L, BH, HR, B, GS, BH, L}

Amount of Capital Returned ($MM) (actual and differential): ______, _______

Distributed to Paid-In (DPI) Capital Ratio (actual and differential): ______, _______

Combined exit multiple (actual and differential): ______, _______

^[1] Please ignore valuation discounts and/or caps for each investment(s), or total equity stake per portfolio venture, during exit.