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Boost VC closes $40M fund as revamped ‘sci-fi’ accelerator

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Re: Boost VC closes $40M fund as revamped ‘sci-fi’ accelerator

#11

Post by KingFelix »

brayton wrote: post #5
kitotik wrote: post #2

I don’t understand the “revamp” or “sci-fi” terms here. Does “revamp” mean they do demo day via zoom now? Does “sci-fi accelerator” just refer to their pre-pandemic willingness to fund blockchain and AR/VR?

We didn't choose the title :) "Boost VC closes $40M fund to continue the same Sci-Fi accelerator for the last 7 years" doesn't have the same appeal. Revamp: We have been a Sci-Fi accelerator for awhile. But new terms are $500k for 15%. Sci-Fi: What do you imagine the future to be? Current Tribe 13 include crypto, VR, quantum & biotech. Sci-Fi - Whatever you imagine that to be

Well glad this got posted here. We just got rejected from Y comb, our tech is sci fi indeed. Alex Garlands made some sci fi that we've built (are building)

Re: Boost VC closes $40M fund as revamped ‘sci-fi’ accelerator

#12

Post by alex-wallish »

tozeur wrote: post #7

How does a $40mm fund w/ a 2% management fee support ~20 employees ($80,000/head)?

Where are you seeing that they have a 20 person team? I don't doubt it, I'm just curious as well. On their website, it only lists four people: https://www.boost.vc/team

Re: Boost VC closes $40M fund as revamped ‘sci-fi’ accelerator

#13

Post by sethbannon »

tozeur wrote: post #7

How does a $40mm fund w/ a 2% management fee support ~20 employees ($80,000/head)?

I don't know anything about Boost's structure in particular but there are a few ways to make this work:

1) Management fees stack from one fund to the next and can add up. The article says their last fund was $38M and that this is their 4th fund. So assuming their first two funds were $20M each (no idea if this is the case), you'd get stacked fees of $20M * 2% + $20M * 2% + $38M * 2% + $40M * 2% = $2.36M / year

2) Often VCs will taper their management fee over time. For instance, they might charge 3% the first two years, and then reduce over time, so the average is 2%. A 3% management fee on just the $40M fund would be $1.2M / year.

3) Sometimes VCs will sell a stake in the management company to fund operations. So if you expect a $40M fund to 3x, and the carry was 20%, then the management company would expect a windfall of ($40M * 3 - $40M) * 20% = $16M. The VC might sell a 10% stake in the management company that's due to received this carry for $1M now, in order to hire staff and fund operations.

Hope this helps!

[edited for formatting clarity]

Re: Boost VC closes $40M fund as revamped ‘sci-fi’ accelerator

#14

Post by brayton »

sethbannon wrote: post #13
tozeur wrote: post #7

How does a $40mm fund w/ a 2% management fee support ~20 employees ($80,000/head)?

I don't know anything about Boost's structure in particular but there are a few ways to make this work: 1) Management fees stack from one fund to the next and can add up. The article says their last fund was $38M and that this is their 4th fund. So assuming their first two funds were $20M each (no idea if this is the case), you'd get stacked fees of $20M * 2% + $20M * 2% + $38M * 2% + $40M * 2% = $2.36M / year 2) Oft…

Or the easiest way. We are only a team of 5 :)

That picture is our team with Tribe 13!

Re: Boost VC closes $40M fund as revamped ‘sci-fi’ accelerator

#16

Post by lostmsu »

brayton wrote: post #5
kitotik wrote: post #2

I don’t understand the “revamp” or “sci-fi” terms here. Does “revamp” mean they do demo day via zoom now? Does “sci-fi accelerator” just refer to their pre-pandemic willingness to fund blockchain and AR/VR?

We didn't choose the title :) "Boost VC closes $40M fund to continue the same Sci-Fi accelerator for the last 7 years" doesn't have the same appeal. Revamp: We have been a Sci-Fi accelerator for awhile. But new terms are $500k for 15%. Sci-Fi: What do you imagine the future to be? Current Tribe 13 include crypto, VR, quantum & biotech. Sci-Fi - Whatever you imagine that to be

Huh, no AI?

Re: Boost VC closes $40M fund as revamped ‘sci-fi’ accelerator

#17

Post by aj_icracked »

Huge congrats to the Boost Team. Brayton and Adam are two of the most grounded and helpful people I've met in the VC space. I'm personally involved in a few of their companies they've introduced me to and love what they're building + the community aspect. Rooting for you guys!

Re: Boost VC closes $40M fund as revamped ‘sci-fi’ accelerator

#18

Post by mariusz331 »

Wow this is so cool. I went through Boost's first class.

In 2012, my friends and I were throwing around startup ideas because we disliked our full-time jobs out of college. We applied to Boost and it changed our lives. Within a week, we quit our jobs, moved to San Mateo, and lived in the startup hotel they provided. We had no clue what we were doing but Adam and Brayton always had our backs and we learned a lot real fast.

Re: Boost VC closes $40M fund as revamped ‘sci-fi’ accelerator

#19

Post by brayton »

aj_icracked wrote: post #17

Huge congrats to the Boost Team. Brayton and Adam are two of the most grounded and helpful people I've met in the VC space. I'm personally involved in a few of their companies they've introduced me to and love what they're building + the community aspect. Rooting for you guys!

Takes a village. Thanks for being a part of ours!
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