MKT1 Capital Limited Partner FAQ

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LIMITED PARTNER FAQ

Common questions from LPS

What is your minimum check size for LPs?

$150K for non-marketers (including operators, founders, VCs, and funds)
$25K for marketers

Let us know if this is prohibitive.

What type of fund is MKT1 Capital?

MKT1 Capital is a traditional venture fund. MKT1 Capital is not a syndicate/SPV or a Rolling Fund. We are also a 506(C) fund, which means we can publicly solicit funds from accredited investors. We use AngelList to manage our fund.

What does it mean that you're raising for "tranche 2"?

MKT1 Capital is a traditional venture fund, not a rolling fund. That said, we've done 2 stints of fundraising we are calling "tranches", 1 year apart from each other due to downturn in spring of 2022 and our desire to increase our initial target fund size to have more portfolio companies and more ability to write follow on checks. We are currently raising our 2nd tranche for our MKT1 Capital Fund I. Investors will get exposure to all portfolio companies, no matter when they invest.

A bit more history...
We were initially targeting a $5M fund size and we raised nearly that amount quickly, in early 2022. We then decided to increase the fund size to have a few more portfolio companies in this fund and a little more capital to invest follow on checks in subsequent rounds raised by our portfolio companies.

In late spring 2022, the private markets landscape changed dramatically. We then decided to pause our raise to focus on investing and supporting companies.

In early 2023, we resumed our fundraising process, still for Fund I, to raise up to $5M more to bring our fund size to up to $10M total. We are calling this raise"tranche 2". Investors in tranche 2 invest 60% at the time they initial invest to catch up to the capital called from existing investors in the fund.

When should I expect returns?

Venture capital funds are typically structured under the assumption that fund managers will invest in new companies over a period of 2-3 years, deploy all (or nearly all) of the capital in a fund within 5 years, and return capital to investors within 10 years.

Source, Angellist

What are the benefits of investing for Marketers?

We want to support marketers as much as we can, and our Marketer LPs are the center of the overall MKT1 community. We not only want to help marketers get on cap tables, but also share angel investing, advising, consulting, full-time, and speaking opportunities with LPs. We're launching a community in early Summer 2023, and you'll be free members for life. We are available to chat with our Marketer LPs anytime about all things marketing and make intros to other marketers, founders, etc.

Do you share angel deals with LPs?

Yes, currently via email, but we are working on ways to share dealflow in a more automated way with LPs who opt-in.

What is an LP? Tell me the basics.

20% of our investors made their first investment in the venture ecosystem, meaning angel investing or fund investing, ,with MKT1 Capital. So we are more than happy to answer any questions you have and would love to be your on-ramp. You can schedule a meeting with us by filling out the form below and you can request a meeting that way.

An LP is a limited partner, or put more simply, an investor in a fund.

What is an accredited investor? Do I have to be accredited to invest?

To be an accredited investor you meet certain income or assets requirements or have passed the Series 7, 65, or 82 financial exams. To requirements:
* Net worth over $1 million, excluding primary residence (individually or with spouse or partner)
* Income over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years, and reasonably expects the same for the current year

We are required to only have investors in our fund that meet these requirements by the SEC. More info here.

There’s no actual accreditation process, but during the MKT1 Capital investing process you'll need to verify through a few quick documents that you meet the requirements.

How do I invest and give you my money? How many capital calls?

Our fund is managed on AngelList. After you fill out our LP interest form or email us, we'll send you that link. You then just follow the flow, you'll add money to AngelList first and then invest it in our fund. Because we are a 506(c) fund, you'll need to prove you are an accredited investor by getting a letter from your financial advisor or uploading a bank statement (we didn't make the rules)--AngelList walks you through this too.

We are doing 3 capital calls. You'll invest ~60% upfront, and invest the remaining amount via 2 more investments aka capital calls.

Interested in investing?

If you'd like to invest in MKT1 Capital Fund I or schedule a meeting with us to learn more about investing, check out our fund page, our deck, or fill out our form.

Fill out our form

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LIMITED PARTNER FAQ

Common questions from LPS

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