Case 2: Building a Venture Fund (Raising from LPs) 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 20MM 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 = {2.5, 5, 0.75, 0.25, 0.5, 1, 7.5, 0.5, 0.25, 1.75} MM for F = To your Funds 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 funds sector: E_proj = {B, GS, B, L, BH, L, GS, BH, B, L} Exit multiplier per scenario {L = 0 B = 0.22 BH = 1 HR = 17.75 GS = 44.5}

Amount of Capital Returned ($MM) (actual and differential): ______, _______ Distributed to Paid-In (DPI) Capital Ratio (actual and differential): ______, _______ Combined exit multiple (actual and differential): ______, _______