Announcing our Capital Extension Program
Secure additional allocation of up to $5M with our Capital Extension Program
A streamlined way for Emerging Fund Managers and Syndicate Leads to secure additional capital for the follow-on funding rounds of their fastest growing portfolio companies.
FAQs
Capital Extension Program FAQs
Emerging Managers and Syndicate leads are excellent at identifying and investing in great companies at the very earliest stages (pre-seed/seed), but as those companies grow and complete further financings, far too often those managers and syndicate leads have no reliable way to continue to invest in the company. The Capital Extension Program (CEP) is a way for emerging fund managers or individual syndicate leads to access “Follow-On” capital to invest further into their fast-growing portfolio companies. The program is designed for investment into portfolio companies that are at the “early growth” stage, not the seed stage. The benefit to emerging managers and syndicate leads is they can access readily available capital to take advantage of follow-on investment opportunities in their best portfolio companies that are growing fast.
Emerging Fund Managers or Individual Syndicate Leads can APPLY and confidentially submit information about a specific follow-on investment opportunity they are looking to invest into. MDSV Capital will review the information and either approve or reject the application within 5 business days. If the opportunity is approved, the MDSV Capital team will structure an SPV on the Sydecar platform with the Emerging Manager or Syndicate Lead as a co-manager, the SPV will be structured as a 2|20 SPV, meaning 2% management fee and 20% Carried Interest, the originating Emerging Manager or Syndicate Lead will split the Carried Interest with MDSV Capital 50|50.
Any Emerging Manager or Syndicate Lead who has an appropriate opportunity that fits the program’s parameters can apply, CEP is designed only for opportunities where the Emerging Manager or Syndicate Lead already has a confirmed allocation in a financing.
The basic requirements for opportunities to get approved are below:
o “Early Growth” stage company (not seed, not pre product-market-fit)
o Typically Series-A through Series-D stage
o Typically $10MM or more in annual recurring revenues
o Predictable revenue growth rate of 1.5X or more annually
o Standard financing round structure of either a priced Preferred financing round, SAFE or convertible note
o Large market /sector
o Average size of investment opportunity is $200K-$5MM
o Pre-Seed, Seed deals will not be considered
o Pre-revenue, less than $10MM in annual revenues or revenue levels that are not growing at least 15%-30% per quarter will not be considered
o Non-technology companies will not be considered
o Non-standard financing structures will not be considered
Any Emerging Manager or Syndicate Lead who has an appropriate opportunity that fits the program’s parameters can apply, CEP is designed only for opportunities where the Emerging Manager or Syndicate Lead already has a confirmed allocation in a financing.
If your opportunity is approved, MDSV Capital would provide the capital to make the investment. If the company achieves a liquidity event in the form of an acquisition or IPO (or possible secondary sale) then the Carried Interest will be shared with you 50/50.
MDSV Capital, a venture capital investment fund and emerging manager fund-of-funds based in Palo Alto California.
MDSV Capital is a venture capital fund founded by team long time Silicon Valley operators who started, built and invested in multiple successful technology companies for the last 25 years.
MDSV Capital has a dedicated pool of investment capital to support the Capital Extension Program of over $50MM.
The CEP is powered by Sydecar’s frictionless deal execution platform. Sydecar provides end-to-end formation and management for SPVs and venture funds, with automated banking, compliance, contracts, tax, reporting, and best-in-class customer support.
There is no cost for Emerging Managers or Syndicate Leads to apply and participate in the CEP program.
Limited International opportunities can qualify for the CEP program depending on where the company is domiciled. Please submit your queries by clicking on 'Connect with us' button.
The CEP program is only for high-growth technology companies.
Venture Capital is defined by Power Law distributions of returns, being the pre-seed or seed investor in an “Outlier” portfolio company creates exceptional returns, but based on historical data from the last 15 years of outliers, you miss out on an additional 2x-4x your total possible returns by not taking advantage of your ability to follow-on and invest up to the eventual exit of that portfolio company.