# What is Tactyc? Tactyc is a portfolio modeling, portfolio management and reporting platform for venture funds. ## Tactyc enables the following: 1. **Portfolio Construction:** * Create a portfolio construction model and share with potential LPs 2. **Active Portfolio Forecasting:** * Update construction model with actual investments and understand how actual performance deviates from plan (and what to do about it) * Model individual deals, strategize reserves and exit scenarios for each investment 3. **Portfolio Management & Reporting:** * Track and manage company KPIs and deal documents * Enrich internal reviews with data-driven insights on reserve deployment and with over 80 different performance metrics at the fund-level and deal-level. * Enrich external reporting with pre-built reports for LPs Funds modelled on our platform can be shared with others (including LPs) with a variety of publishing, exporting and reporting options. ## What pain points do we solve? While we are known for portfolio construction, Tactyc is more than just a replacement for a spreadsheet model. It's your fund model, portfolio management and reporting solution - all in one. Unlike traditional portfolio management platforms that only focus on historical performance, Tactyc also runs a **forecast model** for your fund. The platform can report on your actual fund performance, but also helps you plan future capital allocation, reserve strategy and scenario-planning for individual deals - all while giving you constant actionable insights on improving fund performance. The quantitative techniques in Tactyc empower funds to: * optimize capital allocation towards reserves and future investments * make data-driven decisions for each deal (how much to reserve, should we partial exit, likely exit scenarios) * get actionable insights on fund performance (who are our best co-investors, which sectors or geographies perform the best in our portfolio?) In our experience most funds find it difficult to do the above in spreadsheets given the time and effort needed to maintain these spreadsheet ecosystems. {% hint style="info" %} The analysis that Tactyc makes possible are often too difficult and resource intensive to be done manually with spreadsheets. We've built Tactyc based on actual best practices of hundreds of real-world fund managers - so every GP can be empowered with these data-driven techniques. {% endhint %} ## Getting the most out of Tactyc. * Tactyc is a "forward-looking" model that requires you to think about future scenarios for each deal and for your fund and build them in Tactyc - so your investment and capital allocation process can be more data-driven. * If you are a seasoned data-driven manager that employs such quantitative analysis already in your fund's workflow - Tactyc will not only improve and automate these processes, but also save you countless hours and resources in putting these techniques to work. * If you an emerging fund manager with limited resources, Tactyc will enable you to benefit from the same quantitative workflows as established funds with large teams - but without the cost structure of having to hire a large team of analysts / associates. * To maximize the full potential of Tactyc we encourage your entire investment team to adopt Tactyc as part of daily or weekly fund operations. Tactyc's calculated metrics will only be as accurate as the underlying data that powers them. ## **What Tactyc is not** * Tactyc is not a back-office or fund administration platform. We are a front-office platform for GPs and investment teams. Your capital calls, accounting statements and other standard LP reporting is still expected to come from your administration platform - although many GPs love to enrich their LP reports with certain reports and charts directly from Tactyc such as company tearsheets, performance summaries etc. * Tactyc is not a CRM or pipeline management platform. Many of our clients setup integrations with their CRM system to automatically add deals into Tactyc once a deal reaches a certain threshold. # Training Videos Learn better by watching videos? Check out our training videos on different section of Tactyc ## **Basics of Portfolio Construction** * [General Section](https://www.loom.com/share/2624f8096c134df39f1b37f722e81d11) * [Sector Profile](https://www.loom.com/share/47f0ceae1ea24906a370a8b2897bc1ff) * [Allocations](https://www.loom.com/share/1e58f01c492647879575fac7f8711a54) * [Fees and Expenses](https://www.loom.com/share/716a9e34e6df442f9c91f624966e6e49) * [Exit Recycling](https://www.loom.com/share/8da64887295b4a0888a0e4205ddac27c) * [Waterfall](https://www.loom.com/share/92331d8cba2e4dd08a8733190fd9fb6e) * [LPs](https://www.loom.com/share/67cc1c9979c5419c8a89208e0b04b7c7) ## **Working with and sharing your fund dashboards** * [Overview of different sections and construction vs. current forecasts](https://www.loom.com/share/60c89db4b5b34182bb5b7f4b31e38040) ## **Portfolio Management** * [Adding investments and building performance cases](https://www.loom.com/share/caa9020cfb984b36a4c7a3530c771876) * [Maintaining investments and performance cases](https://www.loom.com/share/aed5d6603e3442998e207c370d4bda87) * [Extracting insights on portfolio performance](https://www.loom.com/share/1eedecca88ac490781dc1b304b6dcb90) ## **KPI Manager and Advanced Features** * [Tracking KPIs](https://www.loom.com/share/f328b9a8a41140a5abe93346e303a4b2) * [Editing your models for actual fees, expenses and capital calls.](https://www.loom.com/share/f60325d048dc4922ac9f6babc0cb7f17) # Contact Us Our support team is available to help you build and manage your fund on Tactyc, or to address any questions you may have that may not be addressed in this documentation. Please contact us at the email address below to get support. ### Contact details * **Solo Plan**: Please email * **Enterprise Plan:** Please email your account manager or ### Response times * **Enterprise Plan:** 2 to 24 hours depending on severity * **Solo Plan:** 2 to 72 hours depending on severity ### **When contacting us** * Please provide us with the name of your fund on Tactyc * Please provide us with a screenshot and/or description of how we can replicate or see your issue # Getting Started Starting your first fund on Tactyc * Click on **Create a New Fund** from your home page
Visualization of different categorizations for fund modeling projects
* Tactyc will present pre-defined templates based on popular fund strategies * Select the option appropriate for your fund size to open the **Construction Wizard** * Step through each section of the wizard and click **Complete** once done to finish constructing your first fund. # Construction Wizard There are 7 sections in the *Construction Wizard:* * [General Section](/portfolio-construction/construction-wizard/general) is where managers define their fund start date, currencies, expected commitments * [Sector Profiles](/portfolio-construction/construction-wizard/sector-profiles) section where you can define the round sizes and valuations for sectors you’re investing in * [Allocations](/portfolio-construction/construction-wizard/allocations) section is where you define the types of investments (Pre-Seed, Seed, Series A) the fund will make, estimated check sizes and follow-on strategies * [Fees and Expenses](/portfolio-construction/construction-wizard/fees-and-expenses) for management fees and fund expenses * [Exit Recycling](/portfolio-construction/construction-wizard/exit-recycling) (optional) for optional exit proceeds recycling * [Waterfall](/portfolio-construction/construction-wizard/waterfall) for hurdle rates, carried interest (%) * [Limited Partners](/portfolio-construction/construction-wizard/limited-partners) (optional) is where you define the LP contributions for each individual LP # General Basic information on your fund. {% embed url="" %} ## Fund Name, Currency and Life ![Visualization of input page for VC fund modeling ](/files/bpCzQTVuQFGGSIV8aP9r) * **Fund Name:** Name of your fund * **Fund Currency:** Currency of your fund. All future investments will automatically be assumed in the same currency too. * **Start Date:** Typically when your fund is launched * **End Date:** If you are modelling an evergreen fund, leave this option turned off and the platform will automatically create an evergreen fund. * **How often you expect to call capital?** The options are Upfront, Quarterly, Semi-Annually and Annually ## Committed Capital ![Visualization of how to set committed capital over time](/files/wuozTFBJ9vIxJqFkbjn4) * **Total Committed Capital:** total capital from LP’s and GP’s * **GP Commitment %:** Percentage of total committed capital coming from GP’s (typically 1-2.5%) * You may also define timing of commitment closes. The default assumes all capital is committed from Month 1. You can use this section to set multiple closes over time. The closes are defined as **% of LP Commitment.**
Visualization of LP commitment schedule
## Cashless GP Commits and Management Fee Waivers There may be situations where a portion or all of your fund's GP commits are cashless. This is common in Management Fee waiver structures where the GPs charge a lower management fee to certain LP's in lieu of a cashless commit. The enter a cashless GP Commit, simply enter the % of GP Commitment that is cashless in the **Cashless GP Contribution (%)**. For e.g. if the GP is receiving a 2% ownership in the fund, but is only contributing 60% of the 2% commitment in cash, you would enter 40% in this field.
## Line of Credit If your fund will be using a line of credit, you can set up the terms of the credit facility for Tactyc to automatically project draws and repayments on the line and associated interest expenses. [Learn more here.](#line-of-credit)
Line of text visualization
{% hint style="info" %} **Line of Credit** is currently a Beta feature and subject to change prior to a wide release. {% endhint %} ## ## Fund Logo In the **Fund Logo** section you can upload your fund's logo in PNG or JPEG. The logo will be prominently shown on the fund's dashboard. ## **Vehicle Structure (Advanced)** The Vehicle Structure field enables you to select a traditional fund or an SPV structure. * **Traditional Fund (recommended)**: The construction wizard will present sections that enable you to model a full projection with future investments. The model will also automatically project future investments, associated cash flows and generally operate the vehicle as if it will be building a future portfolio of investments. * **SPV** **(no construction):** The model will not automatically forecast future investments, instead you will need to manually add investments to build a portfolio of deals.
SPV settings visualization
# Sector Profiles Define macro views on the round sizes, valuations and performance By default a **Tactyc Default** profile is already created for you. This is based on proprietary research and publicly available datasets from Carta, Crunchbase and NVCA and is updated every quarter. You can override the assumptions set directly.
## What goes in a sector profile? Each sector profile is made up of multiple stages (or rounds). These stages define the valuations, round sizes and likelihood of graduations, exits etc. All of these values can be edited and overwritten. * **Round:** The name of the stage * **Round Size:** The size of the round * **Valuation:** Pre or Post Money Valuation * **Valuation ($):** Valuation in amount * **ESOP(%):** Minimum amount of total employee stock options as a percentage of fully diluted shares outstanding at the end of this round. * **Graduation Rate:** Likelihood of graduation *from* this stage to the next stage * **Exit Rate:** Likelihood of exiting *at this stage* * **Failure Rate:** Calculated automatically as 100% - graduation rate - exit rate * **Exit Valuation:** Average value of a company that is exiting at this stage * **Months to Graduate:** How many months will it take from a company to graduate from this stage? * **Months to Exit:** *If a company is exiting at this stage,* how many months will it take from a company to exit after it enters this stage? ## **Adding / Deleting / Re-ordering Stages** Any stage can be added or deleted from a sector profile. * To add a stage, click on **Add Round** * To delete a stage, click on the **x** icon next to stage * To move a stage up or down, use the arrow icons to re-order the stages ## Common Mistakes * Do not delete later stage rounds, even if the fund has no plans on participating in later stages. Tactyc needs to build a future for each of your deals, and the FMV step-ups in the future depend on the valuation of the later stage rounds. * Time to exit is the number of months you expect a company to exit **after it has entered that stage**. This does not mean time it takes for an investment to exit since the fund made an investment in it. * For e.g if Pre-Seed graduation timing is 18 months and if Seed exit timing is 18 months, the total time it would take for a Pre-Seed investment **to exit after the Seed round** is 36 months. Only the fraction of the Pre-Seed investments will exit during this timeframe though - and the actual number of exits depends on the **Exit Rate (%)** applied to the Seed round. ## Constraints * Graduation Rate + Exit Rate cannot exceed 100% for any stage * The last stage must have a 0% graduation rate as there is nothing to graduate to. ## Using Tactyc Pre-Defined Datasets You can also apply an industry profile from Tactyc’s research team by clicking the **Tactyc Datasets.** Selecting one of these profiles will overwrite the current profile with data from our research profiles.
## Customize with Market Intelligence from Crunchbase
You can also use Tactyc’s **Market Intelligence** module to gather data on round sizes and valuations by sectors or countries to help you build a custom profile. Tactyc plugs directly into the the [Crunchbase ](https://www.crunchbase.com/)API to access this data To use this feature, scroll down to the **Market Intelligence** section of the **Sector Profile** to run a query on transactions in specific sectors and geographies. Tactyc will automatically find transactions - and summarize round sizes and valuations by percentiles.
# Allocations Allocations are where you define the types of investments your fund will be making. Think of these as “investment profiles”. {% embed url="" %} The **Current Allocations** shows your currently defined allocations. Click on **+ New Allocation** to create a new allocation or click on any of the allocations to edit their parameters. In the first section for each allocation, define the following: * **Allocation Name:** a friendly name for this allocation for e.g. “Seed Investments” * **Sector Profile:** select the sector profile to be used for this allocation. Tactyc will use the round sizes and valuations from that sector profile to determine future calculations * **Entry Round:** select the entry round from the sector profile * **Capital Allocation (%):** the percentage of investable capital that will be used to make initial and follow-on investments in this allocation ### **Initial Check Strategy**
* Initial check size can be entered either as an Amount or as a Entry Ownership (%). For e.g. a 10% Entry Ownership means, the model will invest the amount needed to get a 10% ownership in the portfolio company * Tactyc will automatically show some helpful calculations such as: * Implied Entry Ownership (if you’re entering check size amount) * Number of initial investments expected in this allocation * Total Capital Allocated towards initial investments in this allocation ### **Follow-On Strategy**
* Similar to the initial check section, you may enter a follow-on check size amount for future rounds or ask Tactyc to maintain ownership (%). * Follow-on Participation (%): This is where you set how often you expect to follow-on. Setting this to 100%, means the fund will follow-on into every single graduation. Setting this to 50%, means the fund will follow-on 1 in 2 graduations. * The helper calculations show the implied follow-on check sizes, graduations, number of follow-ons and capital allocated ### Initial Investment Horizon and Pacing
Finally, set your **Initial Investment Horizon** i.e. the time period over which you expect the fund to make initial investments in this allocation. ### **What’s happening under the hood?** Let’s say your fund’s investable capital is $100mm, and you’ve defined a Seed allocation with capital allocation of 40%. This means $40mm of capital will be used to make initial Seed investments and any follow-on investments for those Seed companies. * **Based on your initial check size**, Tactyc estimates how many initial investments your fund can make * **Based on the graduation rates** from your sector profile, Tactyc estimates how many companies will end up graduating * **Based on your follow-on participation %,** Tactyc estimates how many companies the fund will follow-on into This $40mm will then be further allocated towards initial and follow-on investments based on the *relative proportions* of initial and follow-on investments. What this means is if you lower your follow-on investments, your initial investments will increase - as there is more capital left over to make initial investments. Conversely, if you increase follow-ons, your initial investments will decrease. To summarize, Tactyc will always end up fully deploying the entire $40mm of capital - the relative shifts between initial and follow-ons is determined by the check sizes in each category. ### # Fees & Expenses Define the management fees and expected fund expenses. {% embed url="" %} ## Management Fees By default, Tactyc will start off with as management fee of 2.0% on committed capital for 10 years. You can edit the following: * **Value:** Fee Percentage (%) * **Fee Basis Methods:** We support multiple fee-basis methods (see below) * **Start Month**: the starting month for a fee tier * **End Month:** the ending month for a free tier. ### Supported Fee Basis Methods | Fee Basis | Description | | ------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | | Committed Capital | In each period, fee is charged based on the total committed capital to date by LPs only | | Called Capital Each Period | Fee is charged based on the called capital in that period. | | Gross Cumulative Called Capital | Fee is charged on cumulative called capital to date. | | Net Cumulative Called Capital | Fee is charged each period based on the total called capital to date from LP’s *less* capital returned to LP’s to date | | Cumulative Invested Capital | Fee is charged based on cumulative invested capital (initial and follow-on investments) to date | | Fair Market Value | Fee is charged based on the fair market value of *active investments* each period | | Unrealized Investments | Fee is charged based on the total cost basis of unrealized active investments | ### **Examples** #### **Committed Capital**
DefinitionExample
In each period, fee is charged based on the total committed capital to date by LPs only

2.0% Fee

Total Committed Capital in Period 1: $50mm Total Committed Capital in Period 2: $100mm

Fee in Period 1: $50mm x 2.0%

Fee in Period 2: $100mm x 2.0%

#### **Called Capital**
DefinitionExample
Fee is charged based on the called capital in that period.

2.0% Fee

Called Capital in Period 1: $1mm

Called Capital in Period 2: $0mm

Called Capital in Period 3: $2mm

Fee in Period 1: $1mm x 2.0%

Fee in Period 2: $0mm x 2.0%

Fee in Period 3: $2mm x 2.0%

#### **Net Cumulative Called Capital**
DefinitionExample
Fee is charged each period based on the total called capital to date from LP’s less capital returned to LP’s to date

2.0% Fee

Cume Called Capital in Period 1: $10mm

Cume Capital Returned to LP’s in Period 1: $0mm

Cume Capital in Period 2: $20mm

Cume Capital Returned to LP’s in Period 2: $2mm

Fee in Period 1: ($10mm - $0mm) x 2.0%

Fee in Period 2: ($20mm - $2mm) x 2.0%

#### Cumulative Invested Capital
DefinitionExample
Fee is charged based on cumulative invested capital (initial and follow-on investments) to date

2.0% Fee

Cume Invested Capital in Period 1: $10mm Cume Invested Capital in Period 2: $20mm

Fee in Period 1: $10mm x 2.0%

Fee in Period 2: $20mm x 2.0%

#### Fair Market Value
DefinitionExample
Fee is charged based on the fair market value of active investments each period

2.0% Fee

Unrealized FMV in Period 1: $10mm

Unrealized FMV in Period 2: $20mm

Fee in Period 1: $10mm x 2.0% Fee in Period 2: $20mm x 2.0%

#### Unrealized Investments
DefinitionExample
Fee is charged based on the total cost basis of unrealized active investments

2.0% Fee

Cost basis of unrealized Investments in Period 1: $10mm

Cost basis of unrealized Investments in Period 2: $20mm

Fee in Period 1: $10mm x 2.0%

Fee in Period 2: $20mm x 2.0%

### **How to model step-downs in fees?** Let’s say your fund’s fee structure is: * 2.0% for first 5 years * 1.5% thereafter To model this structure, you will create **2 different fee tiers** as follows. To add a fee tier, click on **Add Fee Tier** at the bottom of the Management Fees section.
### **How to model different fees for different LP’s?** You can create multiple fee profiles for each LP and in a later Limited Partners section, point LP’s to their specific fee. To create multiple fee profiles, * Click on **“+”** icon next to **Default Fee Profile** to create a new fee definition * Enter a name for this fee profile for e.g. Class B LP Fees and click on **Add Fee Tier**. This will create a new fee profile from scratch. * Later in the wizard, in the Limited Partners section, you can point your Class B LP’s to this fee profile.
### **How to model management fee recycling?** Management fee recycling means the fund can recycle exit proceeds up to the level of management fees earned to date. To turn this on, fore each fee tier, open the **Optional: Management Fee Recycling** section and enter the % of fees that can be recycled from that tier.
## **Fund Expenses** Similar to management fees, fund expenses can be defined on a line-item basis. * Click on **Add Expense** * Enter the **Expense Category** * Enter the expected **Monthly Amount** * Enter the **Start Month** and **End Month** i.e. the term of the expected expense
# Exit Recycling Optional section if your fund supports future exit proceeds to be re-invested back into new investments. {% embed url="" %} ## Turning on the Exit Recycling provision. Enter the following information: * **What percentage of exit proceeds can be recycled each period? (%):** This is typically 100% * **What is the most the fund can recycle in total? (as a % of committed capital):** The max amount of exit proceeds that can be recycled. Expressed as a multiple of committed capital. For example: a 50% cap implies the fund can recycle up to half its committed capital from exit proceeds. * **The term of the recycling:** i.e. over what timeframe can the fund recycle exit proceeds? * **Allow fund to recycle future exit proceeds ahead of time:** If this is checked, the fund will aggressively make new investments in initial years in anticipation of future exits. If this is unchecked, the fund will wait for exits to occur before recycling can begin. ## What is the difference between Exit Recycling and Management Fee Recycling? Both Management Fee and Exit Recycling will recycle exit proceeds into new or follow-on investments. The only difference between both these methods is the cap up to which the exits can be recycled. * Management fee recycling means the fund can recycle exit proceeds up to the **level of management fees earned to date.** * Exit proceeds recycling means, the fund can recycle exit proceeds **until a certain cap of committed capital is reached.** This cap is typically expressed as a % of committed capital * A fund could exercise both these provisions in their LPA, if they choose to. # Waterfall Define the profit splits between LP’s and GP’s. Tactyc supports both the American (deal by deal carry) and European (fund level carry) provisions. {% embed url="" %} ## European Waterfall (standard and more common) The European Waterfall follows this naming terminology: * **Distributable Proceeds** is the amount of proceeds that distributable to all Limited Partners * **Tier 1: Initial Investment Return** to all Limited Partners until they have been returned their initial investment. This is fixed to 100%. * **Tier 2 (optional): Preferred Return** to Limited Partners from remaining proceeds to achieve a specified IRR or multiple hurdle rate * **Tier 3 (optional): GP Catch-up** to General Partners from remaining proceeds to achieve a level commensurate with their profit interest (typically 20%) * **Tier 4: GP Carried Interest** to General Partners from remaining proceeds based on a carried interest (%) * **Remaining proceeds** all flow to Limited Partners ## American Waterfall The American Waterfall follows this naming terminology: * **Distributable Proceeds** is the amount of proceeds that distributable to all Limited Partners * **Tier 1: Initial Investment Return** to Limited Partners from LP attributable proceeds. This is fixed to 100%. * **Tier 2: GP Carried Interest** to General Partners from remaining proceeds based on a carried interest (%) * **Remaining proceeds** all flow to Limited Partners * **Optional Clawback:** If the fund has a clawback provision that lets GP claw into past distributions to LP’s check this option and set the hurdle rate at which GP’s can start clawing back. ## GP Commit Treatment * If the fund has a GP Commit, these GPs are treated as LPs for the purpose of the waterfall i.e. the GPs will recoup their committed capital along with the LPs and also participate in any preferred returns and LP profits commensurate with the GP Commitment %. These profits to GP (as an LP) are referred to as **GP Proceeds** in the fund's waterfall in Tactyc. # Limited Partners This is an optional section. If left unfilled, the forecasted model will summarize LP returns as a single LP entity. If you’ve defined LP’s in this section, the model can forecast returns for each LP {% embed url="" %} ## Adding LPs To add a Limited Partner, click on **Add a Limited Partner** * Enter the **LP Investment Amount** * Enter the expected **Capital Schedule** for each LP * Under **Fee Profile** drop-down select the appropriate fee profile for each LP * Set either a custom profit split or let Tactyc assign returns on a pro-rata basis (pro-rata is calculated based on each LP’s contribution) You may also use the **Bulk Upload** option to fill an Excel template and upload your LP data ## Customizing Profit Splits by LP * Be default, Tactyc will always distribute profits to all LP’s based on their **pro-rata** share of committed capital * However this method can be overridden, by selecting **Toggle Profit Splits** from the top toolbar and then selecting **Custom** option from the *Profit Split (%)* for each LP. You can then adjust the percentage of profits each LP can earn from the different tiers * **Tier 1 profit split** (this is the initial investment return) * **Tier 2 profit split** (this is the preferred hurdle return profit split. Only activated if the waterfall actually has a hurdle rate provision) * **Tier 4 profit split** (this is the profit split after GP carried interest)
# FAQs Answers to common questions around portfolio construction # How are Tactyc metrics calculated? #### Tactyc uses the ILPA guidelines for calculation of main performance metrics such as multiples and IRR. In certain advanced cases, where the ILPA guidelines are unclear or open to interpretation (for e.g. the treatment of recycling or dividends), we use the following methodologies. ### **Basic Calculations** * **Realized Proceeds = Realized Exits + Realized Dividends** * **Unrealized Fair Market Value = Sum of unrealized FMV of all active investments** * **Total Fund Value = Realized Proceeds + Unrealized Fair Market Value + Remaining Cash** * **Gross MOIC = Total Fund Value / (Total Invested Capital incl. recycled investments)** * **Gross IRR is computed based on the following cashflows** * **Cash outflow = Cash into investments (incl. any recycled investments)** * **Cash inflow = Realized exits + Realized Dividends + Unrealized FMV** * **Net LP IRR is computed based on the following cashflows** * **Cash outflow = LP Capital Calls** * **Cash inflow = Distributions to LPs** * **DPI = Distributions to LP / Called Capital from LPs** * **RVPI = Unrealized Fair Market Value *****attributable to LPs /***** Called Capital from LPs** * **TVPI = DPI + RVPI** ### Line of Credit Impacts I cases where is a capital credit facility in place, the DPI, RVPI and TVPI calculations also include the outstanding balance on the credit facility in the denominator. # Construction vs. Current Forecasts {% embed url="" %} **Construction Forecast** is a world without any investments. The model’s time is reset to Month 0 and no actual investments are taken into account when computing fund performance. This is your “original” plan. **Current Forecast** is the model taking into account actual investments + projecting future investments based on your remaining capital. To flip between either views, toggle the view from the **Fund Header.** ### **Why is my number of investments different between Construction and Current Forecasts?** Your number of projected investments may actually change in the **Current Forecast** vs. **Construction Forecast**, as in the Current Forecast the system will take into account capital deployed into actual investments to determine remaining capital. The remaining capital is then deployed based on the check sizes defined in construction - and if there is not enough remaining capital, then your projected investments may end up being lower than your construction forecast. **An example:** Let's say your original construction projection estimates 20 initial investments. You've since closed on 5 actual deals. The *Current Projection is* developed as follows: * Determine how much capital is left over after the 5 investments * For the remaining capital, assume you'll continue to make investments as per your construction plan * Develop a new projection for how many deals you'll end up with + expected performance at the end of the fund's life. **Note:** If the current projection deviates meaningfully from the original construction plan, this implies your actual deals may not be in line with construction parameters such as check sizes, valuation etc. ### **When I go back to my construction wizard why does the number of investment differ from construction?** If your fund has deployed capital towards actual investments, the wizard will only show what the fund is capable of doing on the *remaining capital.* For e.g. if your current projected number of deals is 50 and the fund has done 10 deals to date, the remaining 40 deals are projected based on your remaining capital. By changing the allocations in the construction wizard, you can influence these remaining capital that is undeployed but the original 10 deals are untouched. # Downloading Charts Any chart on Tactyc can be downloaded for offline use. Supported formats are usually PDF, images and Excel. To download a dashboard chart into a PDF, Image or Excel data, hover onto the chart to open the Chart Menu. Select the appropriate option to download the chart. ![](/files/4eNmbVSmEUpebhr2p9ES) ## **Excel Warning** Please note that when using the XLS option, Microsoft Excel may show a warning asking if you can trust the source. Please click **Yes** to open an Excel table containing the chart data. # Reserve sizing Tactyc calculates your fund‘s expected reserve ratios instead of having you enter it. This ensures there is no “left-over” capital and enables you to “build up” to the ideal reserve ratio from more granular assumptions. Follow-on reserves are calculated based on: * Number of graduations (this comes from the Sector Profile) * Follow-on strategy defined in each allocation. This includes: * Follow-on check sizes amounts * How many rounds will your fund be follow-on for an allocation? * How often will you be following-on for this allocation? ### **How to define follow-on strategies?** Follow-on strategies are defined at each **Allocation.** In the **Follow-on Strategy** section of the allocation, you can set the follow-on amounts, or choose to maintain your pro-rata ownership.
### **My calculated follow-on reserve % is too low (or too high), how do I adjust this?** If the fund’s reserve ratio doesn’t line up with your expectations, here are some strategies to use: * If your reserves are too low, increase the follow-on check sizes or follow-on participation % * If the above method still doesn’t give you your expected reserve ratio, revisit the **Sector Profiles** and adjust the **Graduation Rate** and **Exit Rates***.* Tactyc will only follow-on into graduated companies. So if you adjust your model’s graduation rates, you can increase or decrease the number of follow-ons demanded in your portfolio. Please keep in mind this is a “macro” change and implies your view on the sector may have now changed as well. # Fractional investments Why are the number of investments fractions? Tactyc’s calculation logic attempts to deploy **all** of your available capital. This can commonly lead to investments being fractions. For e.g. if your model is deploying $10mm capital and but the check sizes are $1.5mm, the result will be 6.67 investments. By hiding the decimals into integers we don't want you get tripped up by rounding. Our calculation engine computes out decimals, so rounding figures up (or down), loses some accuracy - and can end up implying some "unused capital" for your fund. So we've decided to be as transparent as possible to show you exactly the number of investments implied so the totals can all match up over the dashboard. In our experience, LPs completely understand the uncertain and probablistic nature of fund level forecasts and fractional investments should not be confusing to the audience. # Enter number of investments directly Why can I not construct my fund model from number of investments instead of capital allocation percentages? GPs that are used to deterministic Excel based models may want to just set a fixed number of initial investments, and construction their plan based on this number. There’s a few reasons why we don’t support this methodology. {% hint style="info" %} We want to emphasize there is no ***right*** or ***wrong*** way to do portfolio construction. There are only approaches that are flexible and in-flexible. A flexible approach has the advantage of giving the GP multiple levers to pull to run varied construction strategies. {% endhint %} ## **The problem with setting a fixed number of initial investments** The main problem with this approach are: * If you pick a number of deals that is too low, you might have too much unused capital * If you pick a number of deals that is too high, you will not have enough capital to do the deals This usually then results in the GP having to iterate multiple times to land at a number of deals that leaves the least amount of under/over-allocated capital. If the GP then changes their assumption on follow-on checks, fees, expenses - the entire model breaks down again and they would need to iterate all over again to land at the optimal number of investments. In fact, if any of the below variables change, the GP needs to go back and change the number of deals: * Fund commitment * Management fee assumptions * Initial and Follow-On Check size assumptions * Fund expenses * Recycling assumptions In short, this is a fragile approach - that can very easily “break” the model by creating pools of capital that are unused or over-allocated. ## **The benefits of capital allocation** By setting capital allocations first, * Tactyc will ensure there is no unused/over-allocated capital. It will always fully use up all the available investable capital and give you the answer on number of forecasted deals. * It also takes far fewer number of iterations to land at the optimal number of deals and follow-on reserves. Simply set your ideal check sizes - and then it’s a matter of playing with capital allocation (%) to arrive at your construction strategy. You should be able to optimize your fund model in a couple of iterations. * If you change your mind on check sizes, reserve strategies, fees and expenses, recycling % - the model will automatically accommodate these changes without needing to change other parameters. We believe this approach is more stable, flexible - and gives the GP’s multiple levers to pull to run varied construction strategies. ## **Closing Thoughts** If you are set on using number of deals as your starting point, we understand. And perhaps an Excel based approach might be more suitable in your use case. We would be happy to hop on a call and show you how to configure your model appropriately in Tactyc. Please reach out to us at [support@tactyc.io](https://www.notion.so/Tactyc-57c878ab2cf34b229ac7d732b5a2b031) if you would like our advice on how to setup your model. # Setting exit multiples directly GPs that are used to deterministic Excel based models where may want to just set a fixed Exit multiple, and forecast fund performance based on this number. There’s a few reasons why we don’t support this methodology. {% hint style="info" %} We want to emphasize there is no ***right*** or ***wrong*** way to do portfolio construction. There are only approaches that are flexible and inflexible. A flexible approach has the advantage of giving the GP multiple levers to pull to run varied construction strategies. {% endhint %} ## **The problem with setting an exit multiple is:** * It hides away a market dynamics i.e. what are the actual valuation step-ups in the market? By sector or by geography? * It hides away probability of early exits at lower multiples. * It hides away impact of follow-ons, which frequently end up reducing the exit multiple. * The final power law curve for the fund is an input, not an output. In Tactyc we **build up to the exit multiple** from more granular assumptions such as graduation rates, exit rates, valuations. At each round, we want you to consider what the average valuations look like (based on market data), how many companies make it to that round and how many companies exit. This is frequently informed by the performance of your past funds + market benchmarks.
We also take into account your follow-on investments to determine what the expected MOIC looks like. Tactyc puts it all together to calculate the expected exit MOIC in for each of your allocation.
While this approach requires a bit more thought than plugging an exit multiple, it results in a model that: * is more defensible to LPs as its supported by actual market data and your investment strategy * later in your fund’s life, it enables you to see ***where you are going wrong*** i.e. did you assume the wrong graduation rates, investment levels or market valuations? It enables you to better course correct your fund strategy. # Backsolving to find an ideal portfolio Can Tactyc solve for ideal construction parameters? Some GPs would like to set a target performance benchmark (such as TVPI or IRR) - and perhaps have Tactyc generate an “ideal” portfolio for them. If this sounds good to be true - it is! The reality is that there could be an infinite number of “solutions” to this multi-variate problem. Check sizes, graduation rates, exit assumptions, fees, expenses, recycling assumptions - they all play a part in arriving at the final portfolio. Even if we iterate over millions of possible solutions there is no way for a system to make a decision on which is the optimal parameter set from millions of solutions. Secondly, we believe the ***process*** of portfolio construction is at times more important than the end result. By taking the time to play with different assumptions, GP’s can develop an intuition of which levers really move the needs and where their model is most sensitive. We believe this is important for not just the theoretical process of fund construction - but also for actual portfolio management once the fund is launched. # Adjusting Pacing Pacing of capital deployment can be adjusted at the allocation level. For each allocation, change the pacing assumptions by editing the *Initial Investment Horizon.*
The pacing of follow-on investments is then controlled by the **Time to Graduate** field defined in the **Sector Profiles** # Liquidation at the end of fund's life If your fund has a fixed term defined in the **General** section of the **Construction Wizard**, it is likely that you will see the model “liquidate” all the active investments on the last month. The liquidation is done: * based on the **Fair Market Value** of the active investment in the last month. * the investment is reported as exited as of its latest round {% hint style="info" %} If your fund's return seem low, extending the term of the fund may help as it gives all your investments enough runway to fully reach their exit potential instead of being sold off too early. {% endhint %} ## **How is the Fair Market Value determined?** The FMV is determined based on the *Post-Money Valuation* of each investment x *Ownership (%)* in each investment. So if you have an active investment with a Post-Money Valuation of $100mm and a 10% ownership, the FMV would be $10mm. ## **What if I have an investment that is supposed to exit after the fund’s end date?** If you’ve defined an investment that has future rounds or exits beyond the fund’s end date, you will see warning messages for these rounds that denote the round occurs after the fund’s end date. ![](/files/H1BWj1tlH9O7V6kC1BTc) These exits will **not be** included in the cash flows of the model - and instead the investment will be liquidated based on the prevailing FMV on the last month. ## **I don’t want Tactyc to liquidate. Instead I want the investments to run to their full expected Exit value.** Please remove the fund end date from the **General** section of the **Construction Wizard** so the investments can run to their expected exits in the future.
# No or very little recycled proceeds I have turned on recycling assumptions but my fund shows no or very little recycled proceeds If you have turned on recycling provisions for your fund but still see zero recycling (or not enough recycling), there may be a few reasons why this is occurring. ## In order for exit proceeds to be recycled a few conditions need to be met: * **Condition 1:** There should be enough exits within the **investment** window (for initial and following investments). If exits are coming in far too late, then there is nowhere for those exits proceeds to be recycled ***into.*** * **Condition 2:** There should be enough exits **within** the recycling window. Finally, if the amount needed for investments within a given period is far lower than the exit proceeds - then the model will only recycle the minimum amount needed to pay for investments. For e.g., if you have $1mm of exit proceeds in a given month but only have $100k of investment within the same month - only $100k will be recycled. ## **A note about exit proceeds from actual investments:** * If an actual investment that you have defined has been sold, and you have recycled the exit proceeds from that deal, Tactyc will try to recycle those exit proceeds **if there is another investment occurring within the same month.** \*\*If there is no investment occurring within the same month, then those exit proceeds will not be recycled. * Note that you can always manually update the actual amount recycled, by [updating the model for actuals](/advanced/updating-model-for-actuals) and updating the *Exit Proceeds Recycled* row. # Creating a Fund of Funds Allocation While the Sector Profile and Allocations sections of the Construction Wizard are primarily meant for Direct Investments, they can be easily customized into a Fund of Funds investment profile. Tactyc provides a pre-built **Fund of Funds Sector Profile** that can be quickly customized to create a **Fund of Funds Allocation.** ### **Setting up the Fund of Funds Sector Profile** * Under **Sector Profiles**, create a new profile using the **Add Another Profile** option * Select the **Fund of Funds Investment** from **Tactyc Datasets**


* The Fund of Funds profile creates a standard **$100m fund**, with a **2% GP commit** and a **3x return**. You can change the Round Size, Valuation and Exit Valuation parameters to customize this profile for a different return. For e.g. to create a 4x return profile, you would increase the exit valuation to $400mm (4 x $100mm valuation)
### Setting up the Fund of Funds Allocation * Under **Allocations** create a new allocation (for e.g. a "Fund of Funds" allocation) * Under **Linked Sector Profile** connect this new allocation to the **Fund of Funds** sector profile defined above * Under **Initial Check Size** enter the expected investment in each fund
* Tactyc should then automatically calculate the number of fund investments based on the amount of capital allocated to this allocation.
## Adding an Actual Investment with the Fund of Funds profile * Once a Fund of Funds sector profile has been defined, you can then add a new investment using this profile, just like you would for a Direct Investment
* This investment will be created with a round called **Capital Call** and you can specify the amount invested as part of the capital call
* When defining the capital call round: 1. **Investment Amount:** Amount invested by your fund into the portfolio fund 2. **Round Size:** Amount called from all LPs in this capital call round 3. **Pre-Money Valuation:** Cumulative amount raised from all partners prior to this round. Please set this to $0.01 for the first round, or the value of the GP commit if you know that. * Future Capital Calls then also be added by added a new **Capital Call** round # Adding Investments {% embed url="" %} ## Adding an investment * Click on the **Add Investment** button from your **Investments** Page. * The dropdown button will present a list of your sector profiles and ask you to select the entry round at which the fund is entering this investment. For example if you are adding a Series A investment in the FinTech profile you would go to **FinTech Profile > Series A**. Once clicked, you’ll see an **Investment Editor** open up.
adding investments in portfolio management software
* Enter data on this investment's name, sector, geography etc. The only required field is **Investment Name**. * Under the **Performance Case** section you can now define the terms of the rounds the company has had, as well as future rounds you expect the company to have. * Click on **Edit** for the first round and set the investment date and investment terms. ## Editing Round Terms * Click on **Edit** for the round to open the **Event Editor** ![editing investments in portfolio management software for VCs](/files/kmpU1qFwOiXt3CSZfY2b) * The **Event Editor** enables you to set the parameters of the round.
initial investment management software for venture capitalist
## **Planned Investments** * Simply set the investment date of the first round to the future and Tactyc will automatically capture this investment as a planned deal ## **Constraints** * Each investment must at least have **one Investment Round** and **one Exit Round (which could be in the future)** * Note the investment date cannot be prior to the fund’s start date (if you find yourself unable to “go back in the past”, this is the reason). Please change your fund start date in that case to match your earliest investment. For warehoused deals, they need to be entered as of the fund’s start date and they can then be “tagged” as Warehouse deals to identify them for reporting purposes. ## Bulk Upload You can also bulk import multiple investments at one with an Excel option. * Click on **Bulk Imports & Updates > Import New Rounds** from your main investments page
* Download the Excel template and follow the instructions ## Developing Forecasts for Uploaded Investments If you’ve bulk uploaded your current investment rounds, there’s two other recommended steps. These steps will let Tactyc develop forecasts and expected exit returns from your current investments from your pre-defined Sector Profiles ## Build Future Rounds for Each Deal * After the import is finished open each investment and use the **Future** option under the **Performance Case** section to have Tactyc forecast future rounds.
* **On the next dialog you can select the** Sector Profile and staring round
* Once future rounds are built, update the exit valuation to reflect your thesis for the company ## Build Future Rounds in Bulk To make building future rounds from Sector Profiles, you can use the **Build Future Rounds** from under the **Bulk Imports & Updates** selection This will open a view where you can build future rounds quickly for each company.
# Managing Rounds ## Types of events When you click on **+ Add** under an investment round**,** there are multiple options available ![](/files/dpxuXaVVX0C7YvNIhOSK) * **New Round:** Add another financing round by the company * **Ownership Update:** Override Tactyc's internally calculated ownership * **Valuation Update / Change:** Override Tactyc's internally calculated FMV * **Secondary Acquisition:** Acquire secondary shares in the company * **Partial Sale**: Realize a partial sale * **Dividend, Interest or Distribution:** Capture cashflow form the company i.e. dividend, interest or distributions ## **Adding a new round** To add a new historical round to an investment, open the investment and go to the last round. 1. Click on **Add** > **New Round** on the prior round. This will create a new round called *New Round.* 2. Click on **Edit** for this new round and enter the parameters for this round. 3. Click on **Close** when complete and **Save Changes** ## **Projecting Future Rounds** * Click on **Future** from the **Actions** menu
* Select the following attributed to project future rounds * **Sector Profile:** Which sector profile to pick future rounds from? * **Starting Round:** What should be the first future round? * **Graduation Rate:** Should future rounds have graduation rates from the sector profile or should the graduation rates be 100%? * **Starting Date:** What should be the date of the first future round? You can either select a custom date or use the **Last Round** option which will create a future round based on the time to graduate since the last round.
Tactyc will automatically add new rounds to your investment from your selected starting round. ## **Reserve Management**
* Reserves for future rounds can be set by entering them as **Investment Amounts** in future rounds * Alternatively ,clicking on the **Reserve Pro-Rata** option for the future rounds will automatically calculate and the set the amount needed to maintain ownership. * Total amount of follow-on reserved for a Performance Case are shown under **Results** * Note that the actual amount of reserves allocated for a deal are **probability-weighted.** For e.g. if you have reserved $1mm in a future round, but the graduation rate into the future round is only 40%, the amount reserved will be $400k ($1mm x 40%) ## **Managing Graduation Rates**
Graduation rates represent the likelihood of the company reaching that round (and not failing prior). * The MOIC, IRR, FMVs and Exit Proceeds are all weighted by the cumulative graduation. Increasing graduation rates will improve performance (IRRs, multiples, future FMVs and exit proceeds) and vice versa. * To change the graduation rate of a round, click on **Edit** to open the **Event Editor** and then change the **Graduation Rate** field * To remove all graduation rates (i.e. set them to 100%), click on the **100%** button from the **Actions** toolbar
## Entering Share Level Data (Optional) If a round is priced and you have the cap table details, you can directly enter share prices and share counts by turning on the **Enter Share Data** toggle from the **Event Editor**. Tactyc will automatically calculate the round valuation, round size and your investment amounts based on the entered share data. *Note: Share Mode is disabled for unpriced rounds such as SAFEs and Convertible Notes.*
## Tranched Rounds There may be instances where your fund has invested in the same round at the same terms but in multiple tranches. There are 2 recommended approaches to tackling this and the decision depends on your reporting preferences. **Approach 1: Combining tranches into a single round** * In this approach, you combine the 2 tranches into a single round. You can use the **Notes** field to denote that the investment was executed in multiple tranches.
**Approach 2: Defining two tranches as new rounds** * Create multiple rounds reflecting separate investments into the company. The pre-money valuation and round sizes will need to be adjusted accordingly. For e.g. the post-money from the first tranche should become the pre-money for the next tranche.
# Updating valuations Mark-up, mark-down or change the valuation of an investment ## **Valuation Update** By default, Tactyc calculates the FMV of an investment based on the last post-money valuation from a financing round x the fund’s ownership % in the investment. However, frequently you may need to update “mark up or mark down” a deal even if that company did not have a financing round. To update an investment ‘s fair market value: 1. Open the investment 2. Under **Performance Cases,** add a new round and select **Valuation Update** 3. A Valuation Update event will now be created. Click on **Edit** on the Valuation Update event 4. Enter the latest valuation for the company and click on **Close**
## **Bulk FMV Update** Periodically, you may want to mark-up or mark-down the valuation of multiple portfolio companies at once. Tactyc provides a Bulk Update option to make this process easier. * Click on **FMV Update** from your investments page * Enter the date when you want to apply the updates and whether you want to enter the **Aggregate Valuation** or the **FMV** on the deal * Enter your latest valuation data in the next dialog and click on **Save** * Tactyc wil automatically apply **Valuation Update** events for all your changed investments
## Updating FMV independently of Aggregate Valuation By default, Tactyc calculated FMV as : ``` FMV = Post-Money Valuation x Fully Diluted Ownership (%) ``` If a round has been entered with share-level data, then the FMV is determined as ``` FMV = Price per share x Shares Owned ``` However, there may be situations where you want to "disconnect" the FMV from the company's valuation and ownership. For e.g, * You want to reflect the impact of liquidation preferences in the FMV * You want to not mark-up or mark-down FMVs based on changing valuation caps of SAFEs and Convertibles Notes To do this, you can **manually override the FMV independently of the company valuation** 1. Click on the **FMV figure** for the round you want to change the FMV for
2. Check the **Enable Manual FMV Override?** 3. Enter the desired FMV
The FMV should now be updated for the entered FMV figure, and highlighted in green to show that it has been manually overridden.
Tactyc will now respect the entered FMV figure for all reporting purposes. # Updating ownerships Override Tactyc's calculated ownership ## **Ownership Update** By default, Tactyc calculates the ownership at the end of each round automatically. However your actual ownership may be slightly different if there are competing SAFEs, warrants, ESOP pool or other complications involved. To update an investment's ownership% after a specific round 1. Open the investment 2. Under **Performance Cases,** click on **+ Add** for the round you want to update and select **Ownership Update** 3. An Ownership Update event will be created. Click on **Edit** for the Ownership Update event 4. Enter the latest ownership for the company and click on **Close**
# SAFEs and Notes Best practices on working with SAFEs and Notes. ## Entering a SAFE or Convertible Round * Define the **Security Type** as SAFE or Note when defining the round. * Enter the amount invested under the **Investment Amount** field. Total capital raised by the company in the SAFE/Note is entered as the **Round Size.** Specify the **Valuation Cap** ([see here](#uncapped-safes-or-notes) for uncapped notes)
That's it. The round now reflects a SAFE or convertible note. ## **If the note has not converted yet.** {% hint style="info" %} #### How to determine ownership post-conversion after a priced round? Your conversion depends on the valuation of the priced round and whether other competing notes or SAFEs exist. We recommend using the [Cap Table Calculator](/portfolio-management/cap-table-calculator) to determine the projected conversion after a priced round. {% endhint %} * Use the **New Round** option to add a new priced round in the future. Specify the terms of this new priced round (i.e. investment amount, round sizes and valuations)
* Use the provided [Cap Table Calculator](/portfolio-management/cap-table-calculator) to configure a cap table simulation where you can configure existing SAFEs and Notes along with parameters of the future priced round. The results of the conversion will be shown in the **Pro-Forma Cap Table**. You can apply the results of this simulation by clicking on the **+ Ownership Update** button next to your fund's ownership.
* This will create an **Ownership Update** event after the round selected. This ownership update represented the conversion of the SAFE/Note and the ownership in the company post-conversion.
## ## If the note has already converted. {% hint style="info" %} If the note has converted, we need to tell Tactyc what the fund's ownership is in the company post-conversion. There are two ways of doing this. {% endhint %} ### Method 1: Apply an Ownership Update * [Apply an ownership update](/portfolio-management/managing-rounds/updating-ownerships) after the priced round and enter the fund's ownership in the company post-conversion in the **Ownership Update**
### Method 2: Edit Shares in the Priced Round If you have the cap table details post-conversion, you can also define a conversion by directly entering the number of shares to the fund post-conversion in the priced round. * Edit the priced round and enable **Enter Share Data**
* Enter the following: * **Share Price**: The price of the round * **New Shares Purchased:** New shares purchased by the fund in this round * **Total Shares Owned:** Total shares owned by the fund after this round * **New Shares Issued:** Total new shares issued by the company in this round to all investors * **Fully Diluted Shares Outstanding:** Total shares outstanding after this round * Tactyc will now automatically calculate your correct ownership to reflect the SAFE / Note conversion ## Uncapped SAFEs or Notes Tactyc requires a valuation at each round, so the system can calculate the latest FMV based on the last valuation. If a SAFE or Note were uncapped we recommend one of these 2 approaches: * Enter a valuation cap you *expect to convert at*. This is typically the valuation of the next round. You may want to enter a note for this round to say "This is an uncapped SAFE. We currently expect to convert at \[$x]mm". This is for reporting purposes.
* Enter a valuation cap of **prior round's valuation cap + new round size**. This would hold the investment's FMV constant ## Valuation Policy Some funds (most) hold their portfolio companies at the latest valuation caps, while others wait for a priced round to assign a valuation to the company. By default Tactyc will move up or down the valuation of the company based on the last cap of the SAFE or Convertible Note. To override this default behavior, you can simply add a [Valuation Update](/portfolio-management/managing-rounds/updating-valuations) after the SAFE round to hold the company's value at your desired valuation. For example in the below, a Valuation Update is applied to hold the company's value at $35mm instead of being increased to the cap of the SAFE in the Series A round.
# Warrants Best practices on working with warrants ## **Method 1: Adding a new round for Warrants** Add an **New Round** to account for the warrants. * **Security Type:** Other * **Investment Amount:** Price paid for warrants * **Round Size:** Same as investment amount * **Valuation:** The implied valuation of the company at the exercise price
You may also choose to enter data in the Share Mode where you can specify * **Share Price**: Exercise Price * **Shares Purchased:** Shares purchased via warrants * **Total Shares Owned:** Total shares owned post-warrants exercise * **Total Shares Issue:** Shares purchased via warrants * **Fully Diluted Shares Outstanding:** Shares outstanding at the company after warrant exercise
The aggregate valuation of the company will reset to the exercise price, so the next step is to add a **Valuation Update** event to recalibrate the aggregate valuation to the current aggregate valuation.
## Method 2: Ownership Update Alternatively, you can also simply add [an Ownership Update event](/portfolio-management/managing-rounds/updating-ownerships) to reflect the new ownership in the company post-warrants. In this approach the price paid for the warrants is not captured in the invested amount into the company. # Liquidation preferences If your fund has investments where there are active Liquidation Preferences (”liq prefs”), you can run Exit scenarios to incorporate the impact of liq prefs.
## Adding an liquidation preference waterfall to an investment
1. Click on **Liq Prefs** from the Actions toolbar within an investment's **Performance Case** 2. Turn on **Enable Liquidation Preferences** 3. Specify the following: * **Total Liq Pref Owned:** This is the total amount of liquidation preference owned by your fund. For e.g. if you have a 2x Liq Pref on a $2mm investment, you would enter $4mm in this field * **Liq Pref Type**: Specify whether your liq pref is participating or non-participating * **Liq Pref Cap** (for participating liq prefs only)**:** Specify if there is a liq pref cap * **Liq Pref Cap Amount**: If there is a cap, enter the cap amount. For e.g. if you have a 3x cap on a $2mm investment, you would enter $6mm as the cap. * **Total Liq Prefs in Front**: The total amount of liq prefs expected senior to our position. * **Total Other Liq Prefs Pari Passu:** Amount of liq prefs pari passu to us (not including our own) * **Total Liq Prefs Senior:** Total amount of liq prefs that are below or junior to us in the exit waterfall. 4. Once a liquidation pref waterfall has been created, the Exit Event will show a “Liq Prefs Active” sign to signify that there are active Liquidation Prefs in effect. ## Working with multiple cases If you are working with multiple performance cases, you may want to copy liq prefs from one case to another. From the **Actions** toolbar, click on ***Liq Prefs*** to import a liquidation preference waterfall from another case. # Multiple currencies If your fund has investments where the round currency is different than the fund’s currency, Tactyc can help you manage and track currency conversions. {% hint style="info" %} Please note that multiple currencies is available as part of our Enterprise Plan only. Contact us at if you'd like access to this feature. {% endhint %} ## Defining an investment round in a different currency than the fund's currency 1. Open the round you want to edit and select the **Round Currency** 2. Enter an exchange rate directly in the **Exchange Rate** field, or have Tactyc pull the latest exchange rate for you, by entering a **Date** under the Exchange Rate field. 3. Enter the investment amount, round size and pre-money valuation in the round currency. Tactyc will automatically perform currency conversion and show you the corresponding values in the fund’s currency 4. **Close** the round and **Save** the investment.
## **A note on reporting** While the investment’s round is saved under the round’s currency, any reports, charts or calculations that require aggregation or comparison, the fund’s currency is used so Tactyc can accurately compare or aggregate figures on an apples to apples basis. ## Updating FMV for Exchange Rate Changes To update the FMV of an investment and reflect the exchange rate changes: * Add a **Valuation Update** event after the last round
* Ensure the **Round Currency** is set to the currency you want to update * Enter the new **Exchange Rate**, or have Tactyc pull for you the latest exchange rate
* **Close** the round and **Save** the investment # Performance Cases {% embed url="" %} ## What are Performance Cases?
When underwriting an investment, managers typically build multiple *cases* for each investment for e.g., Low Case, Base Case, Upside Case - and each case might have different funding and exit profiles. These cases are assigned a *probability* and a weighted average probability across all the cases is computed to determine expected returns and follow-on reserves for each deal. **Why is this important?** Managers usually model multiple risks simultaneously in their underwriting process: * *Funding Risk:* risk of a company not able to raise subsequent funding rounds * *Market Risk:* risk that exit valuations or future round valuations may not be as expected * *Timing Risk:* risk that a company takes far longer to reach desired performance levels than expected By evaluating a weighted probability profile for the investment - managers can better determine reserves needed and expected returns for each deal. And as the investment matures, these case probabilities can be adjusted or tweaked to continuously monitor the investment risk. ## **Adding New Performance Cases** * Click on **+ Add Case** * Define the case i.e. change the rounds for this case (graduations, exit values) to match your expectations * Enter the probability for case ## **How many cases can an investment have?** Each investment must have at-least 1 case defined. You can have up to 10 cases each investment. ## **How are Case Probabilities different than Graduation Rates?** *Case Probabilities* are simply the likelihood of the entire case occurring. *Graduations Rates* are the probability of an event occurring *within* a case. For e.g., you may want to put a 40% probability for an investment graduating from the Seed to Series A case for the Base Case, and a 70% probability of the same event occurring in the Upside Case. With cases, managers can now fully model all expected investment performance profiles for each investment - and see return results on their fund's dashboard. ## **Common actions** When working with multiple performance cases you might come across situations where you want to quickly clone, copy or make changes to one performance case based on others. Each performance case has a **Actions** section that provides access to common scenarios.
* **Description:** Enter a text-based description for this case * **MarketIntel:** Access comps on round sizes and valuations from market data * **Future**: Add future rounds from an existing *Sector Profile.* Tactyc will add future rounds after the last historical actual round * **Clone**: Clone **all the rounds** from another performance case to the current performance case * **Sync:** Replace the **current historical rounds** (i.e. any rounds that occur in the past) with the historical rounds from another case. This is useful if the portfolio company raised a new round and you want to update this across all your performance cases. Simply add this new round to one case, and then sync the other cases with this case. * **100%:** This will set all the round graduation rates to 100% * **Results:** Shows a summary of all performance related metrics related to this case (MOICS, investment levels, status etc.) * **Notes:** Lets you add a note specific to this performance case. # Best Practices on Performance Cases Performance cases offer flexibility in how you want to model an investment’s forecast. We recommend picking one of the following 3 approaches to manage performance cases for an investment. ## Approach 1: Single case with graduation rates **Level of Effort: Low** Build only one case and the performance risk is captured in the *graduation rates* of the forecasted rounds.
## Approach 2: Multiple cases with 100% graduation rates **Level of Effort: Low** Build multiple cases and the performance risk of the investment is captured in the *case probabilities* of each case.
## Approach 3: Multiple cases with custom graduation rates **Level of Effort: High** Build multiple performance cases and the performance risk is captured in *both the case* *probabilities and the graduation rates* within each case. This gives you the greatest control - for e.g., you may model an Upside case that has a higher likelihood of graduations than the Base case.
# KPI Manager KPIs are operating metrics typically tracked to monitor a portfolio company’s performance. These could be items such as Revenue, Cash Balances, Customers etc. {% embed url="" %} ## **How to add a KPI to an investment?** 1. Go **KPI Manager** from the sidebar 2. Select the portfolio company, you’d like to track KPIs for and click on **Add KPI**. Select from a list of pre-defined KPIs or create your own KPI metric using the **New Metric** option 3. For each KPI, you can specify: * whether the KPI is quantitative or qualitative * the tracking frequency (how often you expect to track this KPI) * tracking period (range over which you expect to track the KPI) * KPI data format (currency, percentage etc.) * Description (a quick description of this KPI) * Company Comments (qualitative comments or MD\&A) * whether you would like the company to upload documents related to this KPI
### **Adding KPI Data**
You can add KPI data yourself, or if you are on an Enterprise Plan, you can also request portfolio companies to enter their KPI data themselves. To add a KPI data yourself: * Go to **KPI Manager > Manage KPIs > Select Company > Add KPI** * Enter data directly in the grid * Click **Save** ## **Request KPIs from portfolio companies** {% hint style="info" %} The ability to request KPIs from portfolio companies is available on our Enterprise Plans only. Contact us at to get access to this feature. {% endhint %} Tactyc lets you create web forms that can be sent to portfolio companies requesting them to directly update their KPI data. These one-time web forms are unique to each portfolio company and can be password protected. The portfolio company does not need a Tactyc account or a Tactyc login. #### Assigning a company contact 1. Go to **KPI Manager** > **KPI Requests** > **Contacts** 2. Enter an email address for the company. You can also use the **Import** function to import contacts from an Excel spreadsheet.
#### #### **Create a KPI Request Form** 1. Go to **KPI Manager > KPI Requests** 2. Click on **Create KPI Request(s)** button 1. Select a **Reporting Periods** for the KPI request. All periods after this reporting period will be treated as "projected", and all periods prior to the reporting period will be treated as "historicals". 2. Click on “All Companies” if you’d like to create request forms for all portfolio companies where you are tracking KPIs 3. Click on a single company if you’d like to create a request form for just that one company for now. Note: Only companies where you are tracking KPIs are eligible for these forms. 3. In the next dialog,
* Specify which KPI metrics would you like to be visible in these KPI requests. By default all KPI metrics are visible. (this option is only available if you clicking on **All Companies**). * Specify whether you’d like to use a passcode to protect the web form data. If no password is specified, anyone with access to the web form URL link will be able to see the KPI data within that web form. Click on **Create Request** when done. 4. A new request form will be generated. The status of this form is currently **Pending Update** **Automatically sending the KPI request form** 1. If a contact has been assigned to the portfolio company, you can have Tactyc automatically send an email to the company notifying them to update their data using the **Request Form.** 2. Click **Send** for an automated email to be send to the company. To send request forms to multiple companies, click the check boxes next to the appropriate request form and click on **Send Selected.** **Manually sending the KPI request form** To manually send this form to the portfolio company, copy the web form link using the **Copy** option and send it your contact at the portfolio company. #### **What the portfolio company sees when they click the link:**
1. When the portfolio company opens the KPI request, they will see a single editable view of all their current KPI data and commentary. 2. They can then enter new data and commentary to update these metrics 3. Once completed, they will click on **Submit** at the bottom of the page to finish the update #### **Once a request has been submitted** 1. Once a portfolio company completes a KPI request, you will receive an automated email notification specifying your KPI request is now completed and ask you to log in to Tactyc to approve the request 2. Once logged in, you will see the request status has now changed from **Pending Status** *to* **Pending Review** 3. To review the KPI update, open the request by clicking on the company name. A review panel will open up showing the original KPI data and updated KPI data for comparison. 4. If you’re happy with the changes, click on **Save** to accept all the new KPI updates. The new KPI data will now automatically be saved and available for reporting. If you’d like to disregard this request, click on Reject to reject the request Note: If you would like to skip the approval process for all KPI requests, go to your **Settings** (from your sidebar) and turn on the **Auto-Approve KPI Requests** option. # Valuation Analysis Automated valuation multiple analysis ### Tactyc will automatically compute valuation multiples on collected KPIs by matching up the KPI provided at each date with the valuation of the company as of that date. This can be useful if your fund runs analysis on "average entry valuation multiple" by round or by sector or by geography. * Go to **KPI Manager > Valuation Analysis** * Select a KPI metric to compute valuation on and set up any additional filters such as entry round, sector, geography etc.)
Tactyc will now automatically summarize the revenue multiple over each company's financing history.
# KPI Request Form FAQs ## What is Tactyc? Tactyc is a portfolio modeling, portfolio management, and reporting platform for venture funds.
## Why am I receiving this request for data? One of your investors is a Tactyc customer and uses Tactyc to collect KPI data.
## Who do I contact if I have questions? Your contact at the fund requesting this data.
## Can I reuse this link multiple times to submit data? No, once this data is submitted the link will no longer work. You’ll receive a new link for the next KPI Request.
## What if I think this is spam or someone posing as my investor? Contact your VC Fund to confirm they sent the request.
## What kind of documents can be attached in this form? Tactyc accepts PDF, XLS, DOCX
## I noticed a bug. How should I report? Please email .
## I like using this form, should I tell my investors about Tactyc? Yes we would love a referral! Tactyc works with funds of all sizes globally.
# Document Center Tactyc's Document Center enables you to manage and track deal or fund related documents in one place. ## **How to add document?** 1. Go **Documents** from the sidebar 2. Click on **Add Document** 3. Give the document a name, tag it to an investment and categorize it (you can create a new category too). This step is optional. ## **How to add multiple document?** 1. Go **Documents** from the sidebar 2. Click on **Bulk Upload** 3. Tag the document to an investment (optional) ### # Investments Table A consolidated view of all portfolio companies and their metrics The investments table is a singular view of your entire portfolio of actual investments.
## Features of the investments table * [See here](/portfolio-management/investments-table/investment-reporting-metrics) for a summary of all available fields in the investment reporting metrics * [See for ](/portfolio-management/investments-table/investment-moics)the various MOIC calculations available for each company * [See here](/portfolio-management/investments-table/time-machine) for how to use the time machine to rollback the fund's clock * [See here](/portfolio-management/investments-table/custom-views) for how to create custom column configurations * [See here](/portfolio-management/investments-table/using-deal-tags) for how to use Deal Tags * [See here](/portfolio-management/investments-table/using-custom-fields) for how to create Custom Fields # Investment Reporting Metrics There are more than 65 reporting metrics available for each investment. These metrics can be accessed in 3 different areas on your fund dashboard: 1. **Investments Table** * Open the **Columns** on top of your **Investments Table** to select the appropriate metrics
2. **Portfolio Summary Report** * Click on **Customize Report** to select the appropriate metrics 3. **Portfolio Insights** * Select the appropriate metrics from the **Metric** dropdown
## **Available Metrics** ### **Company** * **Name**: The name of the portfolio company * **Fund Name:** The name of the fund vehicle that invested in this company * **Status:** Active, Write-Offs, Realized or Planned * **Investment Date:** The date of the first round * **Geography:** The country or region associated with the investment * **Sector:** The sector associated with this company ### **Qualitative** * **Commentary:** Latest partner commentary * **Case Description**: The description of the case that is defined for this company * **Deal Tags:** Any tags associated with this investment * **Partners:** Sourcing or managing partners associated with the investment * **Board Members**: Any board member seats granted to the fund by the company * **Co-Investors**: Any co-investors tracked for this investment ### **Rounds** * **Entry Stage:** The name of the round that the fund made its initial investment into the company (for e.g., Seed) * **Current Stage**: The last financing round of the company for e.g., Series A * **Last Round Date:** The date of the last financing round * **Exit Stage:** The stage of the last financing round prior to exit ### **Capital** * **Invested to Date**: The total capital invested to date by the fund * **Initial Investment**: The amount invested in the first round by the fund * **Reserves Deployed:** The amount invested in subsequent rounds (follow-on investments) * **Reserves Remaining:** The amount reserved for future follow-on investments * **Total Expected Investment:** The total capital expected to be invested in the company by the fund * **Entry Round Size**: The amount raised by the company in the first round the fund participated in * **Cume Capital Raised:** The total amount raised by the company to date * **Cume Capital Raised Since Initial**: The total amount raised by the company excluding the size of the initial round ### **Valuation** * **Entry Pre-Money Valuation** * **Entry Post-Money Valuation** * **Current Post-Money Valuation** * **Entry Ownership** * **Current Ownership** * **Current Share Price:** Applicable only if data has been entered in share mode * **Current Shares Owned:** Applicable only if data has been entered in share mode * **Unrealized FMV**: Value of unrealized stake in the company * **Current Return the Fund**: The current RTF based on the current ownership in the company ### **Exit:** * **Exit Date**: Actual or expected exit date * **Exit Ownership:** Ownership % at Exit * **Realized Proceeds**: Realized proceeds to date. Includes any dividends, interest or distributions * **% Realized:** Percentage of investment that has been realized to date * **Total Exit Proceeds:** Total exit proceeds to be realized inclusive of any dividends, interests or distributions * **Exit Aggregate Valuation:** The expected or actual aggregate valuation of the company at exit * **Exit Return the Fund:** The RTF based on the ownership at exit * **Current Loss Ratio**: The loss ratio on invested capital today * **Loss Ratio at Exit:** The loss ratio on invested capital by exit ### **Multiple** * **Current MOIC:** Current return on $1 of invested capital to date * **Current MOIC on Initial:** Current return on $1 of initial investment only * **Current MOIC on Deployed Reserves:** Current return on $1 of deployed reserves only * **Exit MOIC:** Expected return on $1 of total invested capital * **Exit MOIC on Follow-Ons:** Expected return at exit for every $1 of follow-on investment only * **Exit MOIC on Planned Reserves:** Expected return on $1 of future planned reserves * **Current or Realized IRR:** Represents the IRR return on the investment. ### **Composition** * **Initial to Committed Capital Ratio:** The initial investment divided by the total fund committed capital * **Total to Committed Capital Ratio**: The total investment in the company divided by the total fund committed capital * **Deployed to Total Invested Ratio:** The total invested to date amount int the company divided by the total invested capital by the fund * **Total Investment to Total Expected Investment Ratio:** The total expected investment amount in the company divided by the total expected investment by the fund * **FMV Ratio:** The FMV of an investment divided by the total FMV across all active investments. ### **Other** * **Case Probability:** The probability of the performance case * **Failure Rate:** The probability of a write-off * **Deal Reserve Ratio:** The reserve ratio for this investment calculated as Total Follow-Ons / Total Expected Invested Capital # Investment MOICs Manage MOICs more thoroughly with Tacytc’s Portfolio Management Tools allowing you to track seven different MOIC calculations for each investment. MOICs are a common indicator for evaluating investment performance - however there isn’t one MOIC that is the industry standard. Instead we’ve seen MOICs come in all flavors and depending on your fund profile you may want to track each of these MOIC calculations. There are seven different MOIC calculations in Tactyc for each investment and each represents a different and nuanced performance view of the investment: * **Current MOIC =** *(Unrealized FMV today + Realized Proceeds ) / (Total Invested Capital to Date)* This represents the MOIC today on total invested capital to date. i.e. the return for every $1 of investment * **Current MOIC on Initial** = *Current Share Price / Purchase Price at Entry Round* Represents the MOIC on only the initial investment i.e. excluding any follow-on investments i.e. the return for every $1 of initial investment * **Current MOIC on Deployed Reserves** *= Current Share Price / Weighted Average Purchase Price Per Share in Follow-Ons Rounds* Represents the performance of the deployed reserves to date i.e. the return for every $1 of follow-on investments to date * **Exit MOIC** *= Expected Exit Proceeds / Expected Total Invested Capital By Exit* Represents the expected MOIC at exit on the total invested capital i.e. the expected return at exit for every $1 of investment * **Exit MOIC on Initial** *= Expected Exit Share Price / Purchase Price at Entry Round* Represents the expected MOIC at exit on the initial investment only i.e. the expected return at exit for every $1 of initial investment only * **Exit MOIC on Follow-Ons** *= Expected Exit Share Price / Weighted Average Purchase Price Per Share in Follow-Ons Rounds* Represents the expected MOIC at exit on the follow-on investments only i.e. the expected return at exit for every $1 of follow-on investment only * **Exit MOIC on Planned Reserves** *= Expected Exit Share Price / Weighted Average Purchase Price Per Share of Future Follow-Ons* Represents the performance we expect on the *future* reserves i.e. the expected return for every $1 of future follow-on investments. # Time Machine The Time Machine feature enables you to rollback the clock to a specific point in the fund's life and evaluate portfolio company metrics (IRRs, MOICs) as of that point.
### How to work with the time machine * Go to **Investments** * Click on **Time Machine** on the top right header * Set the clock date to a historical month
* All values in the investment table will automatically re-calculate and show data as of the selected month. ### **How to to know when time machine is active?** When the time machine is in effect, you will see **red button** on the investments table signifying that the time machine is active.
### How to turn off the time machine? * Click the red **Time Machine Active** button * Click on **Reset to today** The time machine will now be turned off. # Custom Views Custom Views enable you to create different column configurations for the investments table Given the more than 200 reporting fields available for your portfolio companies, you may want to create column configurations that highlight different facets of reporting (for e.g. a "qualitative" view, or a "valuation" view")
## To create a custom view: * Click on **Columns** * Check the desired fields you want in the custom view * Click on **Save** * Saving as Default means the next time you load the investments table, this is the view that will be loaded * Saving as **New Custom View** enables you save the current column configuration under a custom name * Saving as **Existing Custom View** enables you to overwrite a prior column configuration ## **Downloading a Report** The portfolio summary report enables you to download an Excel report of the investment table. You can configure the portfolio summary report to load the column configurations from a custom view\.. * Go to **Reports > Portfolio Summary** * Click on **Customize** * Click **Load Investments View >** and select the desired custom view
# Using Deal Tags Deal tags enable you to evaluate performance metrics for sub-sections of your entire fund's portfolio. Deal tags are a quick and easy way to label deals with custom tags relevant for your fund. Your fund's entire portfolio can then be filtered for specific tags. ## **Adding a Deal Tag** * Open an existing investment and click on **Edit Information** * Under **Deal Tags,** you can either select a tag from the pre-defined list or create your own by typing a new tag name
* You can add multiple tags to each deal ## **Filtering on Tags** On the main **Investments Table,** * Expose the **Tags** column using the **Columns** button (if Tags are not already shown on your investments table) * Filter on specific tags to only show matching companies within each tag
## **Tag Performance** Performance by Tags are also available under **Portfolio Insights.**
# Using Custom Fields Custom fields enable you to create your own tracking fields such as tags, dates, numbers or text to categorize portfolio companies While Tactyc already provides deal tags, sector, geographies and other tracking fields, periodically you may want to create your own custom fields that are internal and specific to your fund. These could be internal status color codes (i.e. "traffic lights"), or any additional information you want to track for investments. ## Creating a Custom Field From your investments page, click on **Custom Fields**
* Define your custom fields by specifying the name and type. Support field types are: * Number * Tags * Text * Color Codes * Dates
* Click **Save** when complete ## **Adding Data to Custom Fields** After defining custom fields, when you open an investment, a new sector for **Custom Fields** appear in the **Investment Information** section
* Click on **Custom Fields** to open a panel to enter data for the defined fields
* Click **Submit** to enter the data and **Save** the investment * The investment information section will now show a custom fields section
## **Accessing Custom Fields on the Investments Table** Custom Fields can also be exposed on the investments table from the **Columns** configuration. These custom field columns can be filtered or sorted to evaluate performance for specific sub-sections of the portfolio.
## Adding Custom Fields to Tearsheets Custom Fields created can also be added to the tearsheet from the **Customize** dialog. Select desired custom fields and they will be shown on the left sidebar of each tearsheet.
# Cap Table Calculator The [Cap Table Calculator](http://vc.tactyc.io/cap-table) can help investors quickly determine their expected ownership after the conversion of a SAFE or a Convertible Note. This can be useful if a SAFE or Note hasn’t converted yet but you want to model a future conversion for this security. This calculator can also be accessed from within your fund, or within your investment so you can save various conversion scenarios for your deal. To access this calculator, * Go to **Cap Tables** from your sidebar * Click on **+ Add Cap Table** and select an investment that you are modeling a cap table scenario for * Follow the steps on the next page to import a current cap table, define SAFEs or Notes, model a next round for Tactyc to generate a pro-forma cap table automatically
# Bulk Update Options Periodically, you may want to “bulk update” multiple investments quickly. For e.g. changing assumptions for future funding rounds, future exit scenarios and probabilities or updating sector, commentary etc. Tactyc offers a range of “bulk update” options that are available from the **Bulk Imports & Updates** dropdown from your investments page.
## Update Rounds
The Planning View enables you to change assumptions for rounds within an investment. * Click on **Planning View** from our investments page * Select whether you’d like to edit Historical or Future Rounds * Select the parameters you’d like to edit (for e.g. Investment Amount, Round Size, Valuations, Graduation Rates etc.) * Enter your updates and click **Save** ## Update Qualitative
The **Bulk Update Qualitative Data** option enables you to mass update all metadata associated with your investments (for e.g. Sector, Geography, Commentary, Tags etc.). * Click on **Bulk Import > Qualitative Data** from your investments page * Download the Excel template * Fill out the Excel template offline with updated date * Upload the completed Excel template ## **Update FMV** Periodically, you may also want to update the FMV and ownership % for each deal. Typically this requires a **Valuation Update** or an to be added for each investment. The FMV Update option enables you to mass update ownerships and valuations for multiple investments at once. * Click **FMV Update** from your investments page * Select the date of update and where you are entering FMV (value of the fund’s holdings) or Aggregate Valuation (total equity value of the company)
* Enter the latest data and click **Save.** Tactyc will automatically apply the **Valuation Update** and **Ownership Update** events into each investment accordingly. # FAQs ### **I have made changes to a Sector Profile. How do I "sync" these changes into individual investments?** Use the **Future** option available within each investment to rebuild rounds from a **Sector Profile**
### When adding an investment, I want all the Graduation Rates to be 100% by default. From your fund dashboard's sidebar go to **Settings** > **Investments Configuration** to turn on the **100% Graduation Rates** option. ### **How to adjust for ESOP when adding a new round?** There are 2 ways to adjust a round for dilution from ESOP pool. 1. Use the [**Share Mode Toggle**](https://docs.tactyc.io/portfolio-management/managing-rounds#entering-share-level-data-optional) * If you have the complete cap table, enter the share level data so Tactyc can calculate your ownership accurately. The ESOP pool should be captured in the **Fully Diluted Shares Outstanding** field.
2. Add an [**Ownership Update**](/portfolio-management/managing-rounds/updating-ownerships) * Add an **Ownership Update** event after the financing round to enter your new ownership after ESOP pool. You can also directly enter the **Dilution Factor** from the ESOP pool if you prefer.
### **How to determine reserves for a round?** Determining follow-on investments can by tricky as it requires triangulating multiple deal-level and fund-level metrics. For e.g. increasing follow-on investment in a deal, increases ownership, but also reduces exit MOIC. It lowers the Return the Fund for a deal, but also reduces capital available for investments in other deals. Finding the optimal reserve level requires running multiple scenarios to find the answer that best fits within the parameters of the fund. Tactyc automatically summarizes impact to these key metrics at various potential reserve levels - so managers can quickly compare impacts at various follow-on investment levels. It will also automatically calculate: * follow-on investment needed to maintain ownership from the last round (pro-rata) * follow-on investment needed to keep this deal's reserve ratio in line with the fund's overall reserve ratio Open any future round and click on **What is the optimal reserve level?** helper calculator. to view this analysis.
## **Our portfolio company was acquired (for shares) by another company. How do I reflect this acquisition in Tactyc?** **If a company was acquired by another company, this is not an exit yet. An exit in Tactyc is only when cash is realized from the sale of shares in the company. In this instance, shares are being exchanged for another company.** **To reflect this,** * Change the name of the company to the acquirer (for e.g. Company B prev. Company A) * Apply a **Valuation Update** to set the equity value of the company to the acquirer's company valuation * Apply an **Ownership Update** to set the fully diluted owneship of the fund in the acquiring company
# Construction Methodology The following summary illustrates the Tactyc forecasting logic. Please reach out to us at support\@tactyc.io if you would like further detail. ## **Portfolio Construction** The Tactyc modeling methodology is a step-based process based on the parameters set forth in the **Construction Wizard.** Its important to understand that Tactyc does not forecast an investment line by line (that only happens for actual investments you’ve added to the portfolio). Instead, the model calculates the "average" cash flows for each your **Allocations** **1. Determine Investable Capital** Investable Capital is determined by netting fees and expenses from the committed capital. Any forecasted proceeds from exit recycling is also included in this calculation and increases investable capital. \ **2. Create Allocations** Investable Capital is then segmented into different allocations (such as Seed Investments or Series A Investments). These allocations are further categorized by *Initial* and *Follow On* capital available in each allocation \ **3. Projecting Initial Investments** All initial investments are projected on a monthly straight-line basis by the cadence defined for each allocation. \ **4. Projecting Follow-On Investments** The follow-on check sizes defined for each allocation are *weighted* by the current round's graduation rates to develop a probabilistic level of follow-on investments. \ **5. Projecting Exits and Failures** The exit values defined for each round are *weighted* by exit rates rates at each round to develop a probabilistic level of realized exit proceeds. All investments that do not graduate or exit are assumed to fail at a 0.0x multiple of their initial investment. \ **6. Computing Return Metrics** Exit proceeds are then computed against the fund's waterfall to determine proceeds to LPs and GP's. These cash flows are then used to determine IRR, return multiples, TVPI and other return metrics.
# Updating Model for Actuals {% embed url="" %} ## **Tactyc automatically generates two forecasts for your model:** * **Construction Forecast:** The fund’s original plan before any investments * **Current Forecast:** The fund’s latest forecast after taking into account actual investments By default the Current Forecast is already updated with actual investments you have defined. However, you can also update other forecasted metrics from your model such as: * Committed Capital * Capital Calls * Management Fee * Expenses * Management Fee recycled * Exit Proceeds recycled * Distributions to LP’s and GP’s {% hint style="info" %} It’s important to note that updating actuals **does not change future projections or your investable capital**. If your fund is expected to do 50 deals, that figure will not change after updating actuals. This is simply a way for you to keep your model in sync with actuals that have occurred. {% endhint %} ## **How to update the Tactyc model for actuals?** * Go to **Model View** from the left sidebar * Click on **In-Period Projections** * Ensure you are viewing the **Current Forecast** and that you are on the **Monthly View** * Click on **Edit Actuals** * All cells shown in blue can now be updated for actuals. Enter the new actual figure in the editable text field. * Click on **Save Edits** when complete * All resulting charts and reports throughout the app that refer to actuals will not automatically be updated. # Scenario Builder Change model parameters to run new fund scenarios quickly. ## To run new scenarios for your fund model: * Go to **Scenario Builder** from the sidebar * Click on **Create Scenario** and give this scenario a name * Change the model parameters from the **Scenario Parameters** section. You can revisit multiple parameter sections (such as sectors, allocations, fees, investments, etc.)
* After entering new model parameters, Tactyc will recalculate the model and show the results under **This Scenario** column * Click on **Save Scenario** when complete
## **Running fund scenarios based on individual investment scenarios** If you have built multiple performance cases for your investments, you can easily turn cases "on" or "off" for multiple investments and evaluate impact on fund performance. * Go to **Scenario Builder > Create Scenario** * Go to **Scenario Parameters > Investments** * You should now see a list of all your investment cases. You can "turn a case on" and \ "off" by with the **100%** and **0%** buttons under **Action** * Click on **Recalculate** * Evaluate the **Scenario Results** and then **Save Scenario**
# Custom Formulas Calculate custom metrics from KPI values or default Tactyc reporting fields
## What is a Custom Formula? Custom Formulas are a powerful way to create custom calculations for each portfolio company using variables from: * KPI metrics (such as Revenue, Cash Balance) * Default [Tactyc Reporting Fields](/portfolio-management/investments-table/investment-reporting-metrics) (such as Current MOIC, Invested to Date, Current Post-Money Valuation) These variables can be combined into a custom formula (or "equation") to generate a new calculated variable. Some potential use case are calculating: * Burn rates from collected cash balances * Calculating revenue growth rates over the past X months or years * Calculating revenue multiples such as **Current Post-Money Valuation / Latest Revenue** ## Creating Formula ### Step 1: Create Variables * Go to **Formulas** from the sidebar * Select a **Variable Type** (this could be either a KPI or a [Tactyc Reporting Field](/portfolio-management/investments-table/investment-reporting-metrics)) * Specify a **Timeframe:** * If the variable is a KPI, you can set a timeframe for this KPI value: * **Reporting Type:** Whether to use Actual or Projected KPI value * **As Of**: The relative period in months from today for the KPI value. For e.g. if you want to use the Revenue from 12 months ago, this should be entered as 12 * **Timeframe**: Whether the relative period is in the past or the future * If the variable is a Tactyc Reporting Field, by default the default timefrae value will be as of today * **Variable Name**: The name of the variable to be used in the formula * Click **Add Variable** * Repeat the process for any other variables you intend to use in the formula
### Step 2: Create Formula Next, we need to create a formula using the available variables. Let's say we want to calculate the Revenue Growth Rate using the following formula: ``` Revenue Growth = Revenue Today / Revenue 12 Months Ago - 1 ``` We've defined 2 different variables: * Revenue Today * Revenue 12 Months Ago In the Formula Editor, we can then define the formula using curly braces for variables as follows:
* We've also specified the result format to be a percentage for the calculated growth rate * Clicl **Calculate** to have Tactyc calculate the formula results ### Step 3: Calculation Results If the formula and variables are valid, Tactyc will produce a downloadable table of the formula calculation for each portfolio company
## Saving Formulas To save this formula for easy reference in the future, click on **Save Formula** on the top right. You can either save the formula as a new formula with a custom name (such as "Revenue Growth")
## Loading Formulas To load a saved formula from a prior session, click on **Saved Formulas** and **Load Formula** for the selected formula
{% hint style="info" %} **Important: How Time Frames Work for Loaded Formulas?**
If your formulas uses KPIs, these variables are *relative* in period. For example if you have defined a variable called *Revenue 12 Months Ago* that references the revenue from 12 months in the past, every time you run this formula, the value for this variable will reference the revenue figure from 12 months in the past. **Why are KPI variables relative?** The reason that KPI variables are relative instead of tying to a specific point in time is so that you don't have to constantly change your formula variables to update them. For example if you created a Revenue Growth Rate formula (such as the example above), every time you run this formula, it will always show the latest growth rate as of that point in time.
{% endhint %} ## Coming Soon We are working on exposing the results of this calculation process into other Tactyc reports (such as Tearsheets and Portfolio Summary). More to come here soon! # Disable Automatic Projection How to reflect only actual investments in the Tactyc model By default Tactyc's methodology is as follows: * Actual deployed or planned capital is assumed to perform as per the actual investments you have defined in the **Investments** section * Un-deployed capital is assumed to perform as per the original construction plan i.e. the performance of your **Allocations** in the **Construction Wizard** These two pools of capital are blended together to come up with the **Current Forecast** ## Disabling automatic projection in the Current Forecast only
* Go to **Construction Wizard > Allocations** * Click on **Disable Automatic Projections** on the right corner of the window * Click **OK** Tactyc will now no longer project any future investments on its own, only actual investments will be included in the **Current Forecast**. The original **Construction Forecast** will remain unchanged. ## **Disabling automatic projection for both the Current and Construction Forecasts.** * Go to **Construction Wizard > Allocations** * Delete all your **Allocations** * Click **Complete** Please note in this configuration the **Construction Forecast** is meaningless. The **Current Forecast** will be populated on the fund's dashboard and only reflect the performance of actual investments. # Fund of Funds {% hint style="info" %} Fund of Funds is available on Enterprise Plans only. {% endhint %} Fund of Funds investments are when a fund (”FOF”) invests in another fund (“portfolio fund”) as an LP. The FOF’s cash outflows service the capital calls in the portfolio fund, and the FOF’s cash inflows are the LP returns from the portfolio fund. Tactyc supports Fund of Funds by enabling your fund to make an investment in another fund in your Tactyc account. ## **Requirements** * Both the “parent” fund and “child fund” / “portfolio fund” must be present in your Tactyc Venture Manager account and modelled separately i.e. you will go through the construction wizard for the “parent” fund once and then separately for the “child” fund. You should have 2 distinct funds in your Tactyc account after this process. * You must be on the Enterprise plan to access this feature ## **Adding a Fund of Funds Investment** * From your sidebar, go to **Investments** and click on the **Fund Investments** tab * Click on **Add a Portfolio Fund** * Select a portfolio fund from your Tactyc account to invest into and specify the investment amount * Select whether you want to connect into the Construction or Current forecast of the portfolio fund * Click **Save** Once completed, the main fund will automatically become an investor in the portfolio fund. The cash flows related to this investment can be viewed from the **Fund Investments** section of your dashboard. ## **Limitations** * Both the currencies must be the same for the investing fund and the portfolio fund. * FOF investing in another FOF is not currently supported. FOF must be investing in a fund that is doing direct investments. * If the portfolio fund start date was before the FOF start date, the FOF is assumed to also invest in all of the capital calls prior the FOF start date * If the portfolio fund end date is later than the FOF end date, the portfolio fund is assumed to be liquidated at FMV at the FOF end date # Multi-Fund Views Multi-Fund View enable you to pool together multiple vehicles into a single dashboard for analytics. {% hint style="info" %} Multi-Fund Views are part of Enteprise Plans only. Please contact us at if you would like access to this feature. {% endhint %} ## **Requirements** * All pooled vehicles must be in the **same fund currency** ## Quick Start * From your home screen go to the **Multi-Fund View > Create a Multi-Fund View** tab * Give the view a name and select vehicles to combine. Click on **Save**
# Capital Call Line of Credit Tactyc enables you to model a capital call line of credit and evaluate the impact of the line on cash flows and expected interest expenses. {% hint style="info" %} This feature is currently in Beta {% endhint %} A capital call line of credit is a short-term loan from a third party that you can use to invest in a company without waiting for the LP Capital Call to be executed. This enhances the manager’s flexibility to execute deals and shortens the J-curve, enhancing the fund’s IRR, particularly early in a fund’s life, and therefore its competitiveness on a quartile basis. From an LP perspective, the use of these lines helps smooth cash flows and eases the administrative burden of responding to capital calls. ## Setting up the Line of Credit To set up a capital call line of credit for your fund: * Go to **Construction Wizard > General > Committed Capital** * Open the **Optional: Line of Credit** section * Define the line of credit by setting up the following variables: * **Size of Credit Facility Commitment**: This is the total limit of credit available on the line * **Interest Rate**: Annual rate of interest charged on borrowings * **Unused Fee:** Any unused fee charged on unused capacity on the line. This is a monthly interest rate
## **Impact on Fund Performance** The **Line of Credit** module is presented for you to: * evaluate the appropriate size and terms of the facility for your fund * plan capital calls, draws and repayments based on expected deployment If you have not budgeted an expense for the Line of Credit expenses the line will not have any impact on your fund's performance metrics (such as multiples, exit proceeds or Gross and Net LP IRRs). Overall metrics such as **Investable Capital**, **Number of Investments, Gross MOIC and TVPI** should will not be impacted at all. The only change to your model will be a "smoother" cash flow profile where instead of waiting for a capital call, the model will borrow capital from the line in order to fund the projected investments and expenses. We recommend you create a budget in your model's **Fees and Expense** section to reduce your investable capital by the Line of Credit expenses using the [process detailed here](#creating-a-budget-for-line-of-credit-expenses). Creating a budget will explicitly reduce the **Investable Capital** by the associated interest expense load. ## Creating a budget for Line of Credit Expenses Line of credits will have associated interest or unused fee costs. If you want your fund's investable capital to be impacted by the line of credit costs, these costs will need to be budgeted in your fund model from the [Fees and Expenses section.](/portfolio-construction/construction-wizard/fees-and-expenses) * Go to **Fees and Expense > Expenses** * Tactyc will show an estimated budget based on your line of credit setup. Click on **Add to Budget** to create a budgeted line item for line of credit expenses.
## Evaluating the Line of Credit Once you have setup a line of credit, the Tactyc dashboards and Model Views will show the impact of borrowings and repayments #### **Dashboard** On your dashboard go to **Fund > Credit Facility Analysis** to view metrics on balances, interest expenses and credit efficiency
## **Updating Line of Credit in Model View** The model view will enable you to update the line of credit for any actuals. * Go to **Model View** * Select the **Period** view and scroll down to the **Line of Credit** section
### **Updating for Actuals** Just like other line items in the **Model View**, the line items related to the **Line of Credit** can also be updated for historical actuals with the [process described here](/advanced/updating-model-for-actuals). {% hint style="info" %} Similar to other updates in the **Model View**, any updates to the **Line of Credit** line items will not impact your **Investable Capital** or forecasted investments. {% endhint %} ### **Variable Commitments over time** For funds that have a variable commitment size over time (for e.g., a $100mm facility for first 3 years, scaling down to a $50mm facility for future years), you can edit the **Commitment** line item in the Model View to reflect a custom commitment schedule.
## **How the Line of Credit works** The line of credit works as follows: * Each period if there is unused capacity available on the line, the model will draw the amount needed to fund the investments, fees and expenses from the facility * Unused Capacity is defined as **Total Commitment - Beginning Balance on Line of Credit** * If there is no availability on the line, the model will call capital in order to free up availability * **Interest Expense** is calculated as **Annual Interest Rate / 12 x Beginning Balance on Line of Credit** * **Unused Fee** is calculated as **Unused Rate x (Total Credit Commitment - Ending Line of Credit Balance)** # Optimizing Secondary Market Sales Should we sell a partial stake of our active companies in the secondary marker? Tactyc can help you plan for these situations. ## The Theory Many fund managers that participate in the secondary market, run analyses on what is the lowest price they could sell a company in the secondary market today, without impacting their fund's IRR. If this sale price is lower than the current post-money valuation of the company, this creates an actionably opportunity for the fund to generate DPI today while also being accretive to the fund's IRR. Tactyc automatically "backsolves" for each company's optimal sale price today and the results are summarized under **Insights > Minimum Partial Sale Valuation** section. [Learn more here](https://blog.tactyc.io/optimizing-partial-sales) for the underlying math behind this analysis. ## Minimum Partial Sale Valuation This chart will show the results of the mimum sale valuation calculation. For each portfolio company, Tactyc will summarize: * Current Holding Period * Minimum Sale Valuation: This is the price a company could be sold at in the secondary market without impacting the fund's IRR * Current Valuation * Indicator whether the Minimum Sale Valuation is a discount or premium to the current valuation
## # Performance across reporting dimensions Tactyc can summarize portfolio performance across multiple reporting dimensions - such as sector, geography, partner or any custom field. Under **Insights > Portfolio Insights,** Tactyc will present automatic insights across various dimenions such as: * By Entry Round * By Geography * By Sector * By Partner * By Board Member * By Tags
## Reporting Metrics Furthermore, Tacty can also summarize across many reporting metrics - such as MOICs, IRRs, Capital Deployed, Reserved etc. This enables you to quickly answer questions such as: * What is the total capital deployed by sector, geography etc? * What is the best performing sector, geography? * Who is our best co-investor? i.e. what is the average MOIC by co-investor?
# Optimal Reserves Ranking Tactyc helps fund managers optimize follow-on reserves by ranking each portfolio company based on the opportunity cost of investment. ## Expected MOIC on Planned Reserves By default Tactyc automatically calculates **Exit MOIC on Planned Reserves** - this is the expected return on the next $1 into each company. Tactyc determines this multiple based on the deal-level forecasts for exits, future financing rounds and performance cases. [Learn more here](https://blog.tactyc.io/leveling-up-on-moic-analysis) for the various MOIC analysis in Tactyc. ## Optimal Reserves Under **Insights > Optimal Reserves Ranking,** Tactyc will then automatically rank each portfolio company based on this **"follow-on multiple".** This chart will also show the current planned and deployed reserves for each portfolio company.
## # Publishing Publishing a model creates a shareable URL link for your model’s dashboards that can be sent to anyone. Anyone who clicks on the link will see the fund’s dashboard in a read-only mode. * Click on **Publish** from the left sidebar * Toggle **Start Publishing** * Some optional configurations for publishing are: * You can choose to hide the GP partner return metrics if you so require * **Security Options:** You can set a passkey for your model so your audience will have to enter the passkey in order to access the published link * **LP Specific Links:** If you have defined multiple LP’s, you can create an LP-specific link that will hide the LP returns for all other LP’s. (Enterprise Plan only) * **Custom Link:** You can override the Tactyc generated link identified with a more friendly name (for e.g. your fund’s name). (Enterprise Plan only) ## **Standard Disclaimer** If you are sharing a forward-looking model with potential investors, please consider using any of the following disclaimers. **Introduction to Tactyc** This model was prepared using the [Tactyc](https://docs.tactyc.io/) software - a best-in-class fund modeling and performance forecasting platform built specifically for venture funds. Please refer to Tactyc's [Documentation Center](https://docs.tactyc.io/general/what-is-tactyc) for further guidance on the model logic, particularly the [Construction Methodology](https://docs.tactyc.io/advanced/construction-methodology) for more information on the logical flow of the model. #### Disclaimers * Projections are not prepared with a view toward public disclosure or compliance with the guidelines of the SEC or the American Institute of Certified Public Accountants. * Independent public accountants have not examined nor compiled any Projections, and have not expressed an opinion or assurance with respect to the figures. * Tactyc or \[FUND] has not warranted the accuracy or reliability of the Projections to anyone. * Tactyc or \[FUND] makes no representation that the financial forecasts will be achieved. * Tactyc or \[FUND] undertakes no obligation to assess the veracity of the Projections. * Investors are cautioned not to rely on the information in making a decision regarding the Offerings. * Projections are inherently forward-looking statements subject to standard risks and uncertainties. * Investors should verify any issuer information they consider important before making an investment. * Investments in venture funds are particularly risky and may result in a total loss of invested capital. * Tactyc or \[FUND] does not verify information provided by companies on the Site and makes no assurance as to the completeness or accuracy of any such information.
# Collaborators Collaborators are team members who have access to your fund's model. You can control access levels for collaborators to only grant them read or edit access. ## Adding a Collaborator from Home * From your home screen and click on the **Manage Collaborator** under **Collaborators** for your fund * On the next dialog, enter the email address of the person you want to collaborate with
* Collaborators will get an email saying you’ve sent a model to them. Once they login to their Tactyc account they’ll see your model on their home screen. ## **Adding a Collaborator from with the fund's dashboard** * Open the fund's dashboard * From the left side-bar click on **Collaborators** ## **Set Access Levels for Collaborators** * By default all collaborators have full-write access to all parts of your fund. You can control the access levels for different sections of the fund by collaborator.
**Note:** Collaborators must have an active Tactyc account. This may be a valid trial account as well. # API Overview {% hint style="info" %} Please note this a beta feature and subject to changes before a wide release. {% endhint %} {% hint style="info" %} If you want to pull data into Tactyc, we recommend using the **Bulk Import** options. If you want to pull data out of Tactyc, we recommend using the Excel or PDF reports and export options. Use the API if you want to programmatically add a new investment into your Tactyc fund model {% endhint %} ## **Requirements** * Please contact us at to receive an **API Key** * Take a note of the fund ID that you want to programmatically add investments into. This is available under the **Fund ID** column from your Tactyc home screen.
## Formulating the Request Header Header must have the following key pair: * **Key:** Authorization * **Value**: Your API Key {% code overflow="wrap" %} ``` #FORMULATING THE HEADER WITH FUND ID AND API KEY. REPLACE THE VALUE WITHIN {{ }} WITH #YOUR FUND ID AND API KEY curl https://tactycapi.com/api/fund/{{FUND_ID}}/investment -X POST -H 'Authorization:{{API KEY}}' ``` {% endcode %} ## Quick Start Methods: [Adding a Single Investment](/api-and-integrations/api-overview/adding-a-single-investment) [Adding Multiple Investments](/api-and-integrations/api-overview/adding-multiple-investments) [Fund Configuration and Metadata](/api-and-integrations/api-overview/fund-configuration-and-metadata) [Performance Metrics](/api-and-integrations/api-overview/performance-metrics) [Performance Summary](/api-and-integrations/api-overview/performance-summary) [Investment Cashflows](/api-and-integrations/api-overview/investment-cashflows) [KPI Metrics](/api-and-integrations/api-overview/kpi-metrics) [Update KPI Metrics](/api-and-integrations/api-overview/update-kpi-metrics) # Adding a Single Investment ## **Method and URL**
URLhttps://tactycapi.com/api/fund/{{FUND_ID}}/investment
MethodPOST
## Sample Request Header {% code overflow="wrap" %} ``` #FORMULATING THE HEADER WITH FUND ID AND API KEY. REPLACE THE VALUE WITHIN {{ }} WITH #YOUR FUND ID AND API KEY curl https://tactycapi.com/api/fund/{{FUND_ID}}/investment -X POST -H 'Authorization:{{API KEY}}' ``` {% endcode %} ## Sample Request Body The **body** of your API request must be a JSON field contain the following required fields: * **Name:** Name of the portfolio company (**string)** * **Investment Date:** Date of the investment. Must be in "MMM-YYYY" format, for e.g. "Jan-2023" **(string)** * **Investment Month:** Month of the investment between 1 and 12 where 1 = January and 12 = * **Round**: The name of the round for e.g. "Seed" **(string)** * **Amount:** Amount invested (**number)** * **Pre-Money Valuation**: Pre-Money Valuation of the round. For SAFEs or Convertible Notes enter the cap instead (**number)** * **Round Size:** The financing raised by the company in this round **(number)** * **Exit Month (Optional):** Months to exit since the round * **Exit Valuation (Optional):** Company valuation at exit 
#SAMPLE BODY IN REQUEST

{
    "investmentDate": "Mar-2023", 
    "name": "Saturn", 
    "round": "Seed", 
    "amount": 1000000.0, 
    "preMoneyValuation": 10000000.0, 
    "roundSize": 2000000, 
    "sector": ["FinTech", "SaaS"],
    "tags": "FinTech, Saas",
    "exitMonth": 60,
    "exitValuation:: 100000000
}
## **Sample Response** A succesful creation of a new investment will result in the following response with a status code of **200.** The output fields in the response are: * **Investment ID**: Identifier for this investment within Tactyc's fund instance. This is unique across investments but is not unique across performance cases. * **Case ID:** This is a unique ID for each performance case defined for an investment. By default each investment must have atleast 1 performance case. ```json { "status": 200, "body": { "investmentId": "OyZVlx8aD_", "caseId": "EtEEYHW_U", "name": "Saturn" } } ``` # Adding Multiple Investments ## **Method and URL**
URLhttps://tactycapi.com/api/fund/{{FUND_ID}}/investments
MethodPOST
## Sample Request Header {% code overflow="wrap" %} ``` #ADDING AN SINGLE INVESTMENT curl https://tactycapi.com/api/fund/{{FUND_ID}}/investment -X POST -H 'Authorization:{{API KEY}}' ``` {% endcode %} ## Sample Request Body The **body** of your API request must be an **array** of JSON field contain the following required fields: * **Name:** Name of the portfolio company (**string)** * **Investment Date:** Date of the investment. Must be in "MMM-YYYY" format, for e.g. "Jan-2023" **(string)** * **Investment Month:** Month of the investment between 1 and 12 where 1 = January and 12 = * **Round**: The name of the round for e.g. "Seed" **(string)** * **Amount:** Amount invested (**number)** * **Pre-Money Valuation**: Pre-Money Valuation of the round. For SAFEs or Convertible Notes enter the cap instead (**number)** * **Round Size:** The financing raised by the company in this round **(number)** * **Exit Month (Optional):** Months to exit since the round * **Exit Valuation (Optional):** Company valuation at exit 
#SAMPLE BODY IN REQUEST

[
    {
        "investmentDate": "Mar-2023", 
        "name": "Epsilon2", 
        "round": "Seed", 
        "amount": 1000000.0, 
        "preMoneyValuation": 10000000.0, 
        "roundSize": 2000000, 
        "sector": ["FinTech", "SaaS"],
        "tags": "FinTech, Saas",
         "exitMonth": 60,
        "exitValuation:: 100000000
    },
       {
        "investmentDate": "Mar-2023", 
        "name": "Epsilon3", 
        "round": "Seed", 
        "amount": 1000000.0, 
        "preMoneyValuation": 10000000.0, 
        "roundSize": 2000000, 
        "sector": ["FinTech", "SaaS"],
        "tags": "FinTech, Saas",
         "exitMonth": 60,
        "exitValuation:: 100000000
    }
]
```
## **Sample Response** A succesful creation of a new investment will result in the following response with a status code of **200.** The output fields in the response are for each investment: * **Investment ID**: Identifier for this investment within Tactyc's fund instance. This is unique across investments but is not unique across performance cases. * **Case ID:** This is a unique ID for each performance case defined for an investment. By default each investment must have atleast 1 performance case. ```json { "status": 200, "body": [ { "investmentId": "IDUVOJChyH", "caseId": "dckTftcwp", "name": "Epsilon2" }, { "investmentId": "-Z6ec8GrkZ", "caseId": "D1Pxci3aRJ", "name": "Epsilon3" } ] } ``` # Fund Configuration and Metadata Get a fund's configuration and parameters programtically ## **Method and URL**
URLhttps://tactycapi.com/api/v2/fund/{{FUND_ID}}
MethodPOST
ParamsFund ID: The fund's unique ID identifier.
## Sample Request The following is a sample request: ``` // Sample request curl https://tactycapi.com/api/v2/fund/{{FUND_ID}} -X POST -H 'Authorization:{{API KEY}}' ``` ## Sample Response The response will provide the following fields: * **Status Code:** 200 for a succesful response * **Body:** JSON array of KPIs for each investment * **Metrics provided are:** * **id:** Fund ID * **general:** General Configuration parameters for the fund model * **name:** Name of the fund * **startDate:** Start date of the fund * **endDate:** End date of the fund * **committedCapital**: Size of the fund * **investments**: Array of all investment related data in the fund * Each array contains an object for a single portfolio company. The object has the following properties: * **id:** Internal unique ID related to the company and its scenario * **investmentId:** internal unique ID related to the portfolio company * **scenarioName**: The name of the performance case associated with this portfolio company * **probPerc**: The probabiliy of this performance case * **stages:** Funding and Valuation metrics related the stages of the portfolio compay. Each stage has a **preMoneyValuation** and **roundSize** field along with the time it takes to graduate or exit from this stage. ````json ```json { "status": 200, "body": { "id": "uIM6t9co-", "vanity": [ "venturemanager", "3865" ], "createdBy": "admin@tactyc.io", "createdAt": "2021-11-01T17:04:55.000Z", "deletedAt": null, "deletedBy": null, "updatedAt": "2024-04-08T15:43:01.000Z", "publishStatus": "published", "password": null, "general": { "name": "Quantum Ventures II L.P.", "notes": "Master Model.", "endDate": "2120-01-01T00:00:00.000Z", "cashless": 0.2, "currency": "USD", "fundType": "traditional", "startDate": "2022-01-01T00:00:00.000Z", "unusedFee": 0.0002, "facilityTerm": 60, "interestRate": 0.0825, "unusedFeeLoc": 0.0125, "committedCapital": 200000000, "maxRepaymentTerm": 6, "lpCommittmentPerc": 0.98, "creditFacilitySize": 0, "capitalCallSchedule": "quarterly", ``` ``` ```` # Performance Metrics Retrieve performance metrics by period programmatically {% hint style="info" %} As a large number of visual metrics on your Tactyc dashboard are computed "on-the-fly" on your browser. not every metric seen on the dashboard may be available via the API. Please use the provided reports or charts from the fund dashboard to download any metrics not available via the API. {% endhint %} ## **Method and URL**
URLhttps://tactycapi.com/api/metrics/{{FUND_ID}}/{{MODE}}/{{ACCUM}}/{{METRIC}}
MethodGET
Params

Fund ID: Your Fund ID that you wish to pull metrics from

Mode: current or construction

Accum: period or cumulative

Metric: The metric key you wish to pull for e.g. newInvestments

## Sample Request The following is a sample request to query the in-period TVPI for the current model. ``` // Sample request curl https://tactycapi.com/api/metrics/{{FUND_ID}}/current/period/tvpiLp -X GET -H 'Authorization:{{API KEY}}' ``` ## Sample Response The response will provide the following fields: * **Status Code:** 200 for a succesful response * **Start Date:** The start date on file for the fund * **Period:** The current month of the fund starting with 0 as the first month * **Metrics:** An array of objects representing metric performance over time. Each object has the following fields: * **Month:** Current Month * **Date:** Pretty Formatted Date in MMM-YYYY format * **Value:** The value of the metric in this period ```json { "status": 200, "body": { "startDate": "2019-04-01", "period": 48, "metrics": [ { "month": 0, "date": "Apr-2019", "value": 0 }....]} } ``` ## **Available Metrics** The following metrics are available for access programmatically via our API. These are the **metric keys** that need to be added to your request URL. **Committments** * **committedCapitalLp**: Committed capital from LP * **committedCapitalGp**: Committed capital from GP * **committedCapital**: Total committed capital **Investment Cash Flows** * **newInvestments**: Cash flows into initial investments * **followOnInvestments**: Cash flows into follow-on investments * **totalInvestments**: Total cash flows into all investments **Deployed Capital** * **contributedCapital**: Total capital deployed across fees, expenses and investments * **contributedCapitalLp**: Total capital deployed by LPs across fees, expenses and investments * **contributedCapitalGp:** Total capital deployed by GPs across fees, expenses and investments **Called Capital** * **calledCapital**: Total capital called this period * **calledCapitalLp**: Total capital called from LPs this period * **calledCapitalGp**: Total capital called from GPs this period **Exits** * **exits**: Exit proceeds this period to the fund * **exitRecycledActualized**: Exit proceeds recycled this period **Dividends** * **dividends**: Dividends to the fund from investments * **dividendsRecycledActualized**: Dividends recycled this period into investments **Management Fees and Expenses** * **managementFees**: Total management fees in this period * **managementFeesRecycledActualized:** Management fees recycled this period * **expenses:** Fund expenses this period * **totalFeesAndExpenses:** Total fees and expenses **Fund Performance** * **tier0Gp:** GP Proceeds * **tier1:** LP return of Contributed capital * **tier2**: LP return of preferred hurdle * **tier3:** GP Catch-up * **tier4Gp**: GP Carried Interest * **tier4Lp**: LP Profits * **netProceedsLp**: Net Proceeds to LP * **netProceedsGp:** Net Proceeds to GP * **fairMarketValue**: End of period fair market value or NAV for the fund * **grossMoic**: The gross multiple for the fund * **dpiLp:** DPI for the fund * **tvpiLp:** TVPI for the fund * **rvpiLp:** RVPI for the fund # Performance Summary Get a fund performance report programmatically ## **Method and URL**
URLhttps://tactycapi.com/api/fund/{{FUND_ID}}/{{PERIOD}}
MethodGET
Params

Fund ID: Your Fund ID that you wish to pull metrics from

Period: The ending month of the report. For e.g. to a performance report spanning the first 12 months of the fund, enter 12 for this field

## Sample Request The following is a sample request to query the first 12 months performance ``` // Sample request curl https://tactycapi.com/api/fund/{{FUND_ID}}/12 -X GET -H 'Authorization:{{API KEY}}' ``` ## Sample Response The response will provide the following fields: * **Status Code:** 200 for a succesful response * **Body:** Various performance metrics in this report such as. For each metric, the report will provide 3 separate fields: * **period:** The value of this metric since the start of the fund's life and up to the specified period (for e.g. over the first 12 months) * **construction:** The projected value at the end of the fund's life in the construction forecast * **current:** The projected value at the end of the fund's life in the construction forecast * **Metrics provided are:** * **numInvestments:** Total number of initial investments * **investmentsByRoundName:** Total number of initial investments by entry round * **endingFundValue:** Fund valuation or NAV * **unrealizedFundValue:** Unrealized FMV of active investments * **realizedFundValue:** Realized exit proceeds to date * **grossMultiple:** Gross MOIC for the fund * **rvpi:** RVPI for the fund * **tvpi:** TVPI for the fund * **dpi:** DPI for the fund * **netIrr**: Net LP IRR * **grossIrr**: Gross fund IRR * **initial**: Total initial investments in fund currency * **followOn:** Total follow-on investments in fund currency * **followOnRemaining:** Planned reserves in fund currency ```json { "status": 200, "body": { "numInvestments": { "period": 7.999999999999999, "construction": 62.38721165703767, "current": 59.346179605814086 }, "investmentsByRoundName": [ { "roundName": "Pre-Seed", "values": { "period": 0, "construction": 38.095696366358005, "current": 25.24734576744484 } }, { "roundName": "Seed", "values": { "period": 6, "construction": 14.16141892152578, "current": 22.3852659006684 } }, { "roundName": "Series A", "values": { "period": 2, "construction": 10.130096369153915, "current": 11.713567937700816 } } ], "endingFundValue": { "period": 16462973.22167488, "construction": 552380479.3461251, "current": 646581975.2150315 }, "unrealizedFundValue": { "period": 16462973.22167488, "construction": 0, "current": 0 }, "realizedFundValue": { "period": 0, "construction": 552380479.3461251, "current": 646581975.2150315 }, "grossMultiple": { "period": 1.2871190907334396, "construction": 4.957141550024112, "current": 5.802519268293509 }, "rvpi": { "period": 1.1185559687112105, "construction": 0, "current": 0 }, "dpi": { "period": 0, "construction": 3.1369023967306235, "current": 3.6079098760751567 }, "tvpi": { "period": 1.1185559687112105, "construction": 3.1369023967306235, "current": 3.6079098760751567 }, "netIrr": { "period": 0.22488683971248524, "construction": 0.1817330500227663, "current": 0.3111731415112886 }, "grossIrr": { "period": 1.3583146070741572, "construction": 0.2581685489777643, "current": 0.4624163350406383 }, "initial": { "period": 12290559.42857143, "construction": 59035833.84722474, "current": 64339287.00821392 }, "followOn": { "period": 500000.00000000006, "construction": 52395416.15277522, "current": 47091962.991785966 }, "followOnRemaining": { "period": 46591962.991785966, "construction": 52395416.15277522, "current": 47091962.991785966 } } } ``` # Investment Cashflows Get a investment's cashflows programmatically ## **Method and URL**
URLhttps://tactycapi.com/api/investment-cashflows/fund/{{FUND_ID}}
MethodGET
ParamsFund ID: The fund's unique ID identifier.
## Sample Request The following is a sample request to query the first 12 months performance ``` // Sample request curl https://tactycapi.com/api/investment-cashflows/{{FUND_ID}} -X GET -H 'Authorization:{{API KEY}}' ``` ## Sample Response The response will provide the following fields: * **Status Code:** 200 for a succesful response * **Body:** JSON array of cash flow events for each investment * **Metrics provided are:** * **id:** Internal Tactyc ID * **investmentId:** Internal Tactyc ID for the investment * **investmentName:** Company Name * **scenarioName:** Name of the performance case * **probability**: Performance case probability * **value:** Cash flow value in fund currency * **date**: Date of the cash flow event * **period:** Number of months since the fund's start date * **type**: Initial, Follow-On, Dividend or Exit ````json ```json { "status": 200, "body": [ { "id": "ITJlpIeNy", "investmentId": "ksf7HDgwvKv", "investmentName": "AlphaTech", "probability": 0.2, "scenarioName": "Base", "value": 1500000, "date": "Jan-2021", "period": 0, "type": "initial" }, { "id": "A8d2ObVN2Y", "investmentId": "vBGvl4ybp", "investmentName": "EchelonTech", "probability": 1, "scenarioName": "Base", "value": 1000000, "date": "Jan-2021", "period": 0, "type": "initial" ``` ```` # KPI Metrics Get a investment's KPIs programmatically ## **Method and URL**
URLhttps://tactycapi.com/api/v2/kpi-metrics/{{FUND_ID}}
MethodGET
ParamsFund ID: The fund's unique ID identifier.
## Sample Request The following is a sample request: ``` // Sample request curl https://tactycapi.com/api/v2/kpi-metrics/{{FUND_ID}} -X GET -H 'Authorization:{{API KEY}}' ``` ## Sample Response The response will provide the following fields: * **Status Code:** 200 for a succesful response * **Body:** JSON array of KPIs for each investment * **Metrics provided are:** * **investmentId:** Internal Tactyc ID for the investment * **name:** Name of the portfolio company * **label:** KPI name (for e.g. "Revenue") * **actual:** Array of numbers of actual KPI data * **projected**: Array of numbers of projected KPI data * **format:** Format of the KPI data * **startDate**: Start of KPI collection date * **reportingType:** Whether the KPI data is monthly, quarterly or annual ````json ```json ```json { "status": 200, "body": [ { "investmentId": "3cGySo6YP", "metrics": [ { "id": "6s0yw5c8pS", "label": "ARR", "actual": [ 2300000, 2545832.891, 2571291.22, 2597004.132, 2622974.173, 2649203.915, 2675695.954, 2702452.914, 2729477.443, 2756772.217, 2784339.94, 2812183.339, 2840305.172, 2868708.224, 2897395.306, 2926369.259, 2955632.952, 2985189.281, 3015041.174, 2784339.94, 2812183.339, 2840305.172, 2868708.224, 2897395.306, 2926369.259, 2955632.952, 2985189.281, 3015041.174, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null ], "format": { "currency": "USD", "precision": 0 }, "documents": [], "projected": [ 3984901, 4024749.622, 4064997.118, 4105647.089, 4146703.56, 4188170.596, 4230052.302, 4272352.825, 4315076.353, 4358227.116, 4401809.388, 4445827.481, 4490285.756, 4535188.614, 4580540.5, 4626345.905, 4672609.364, 4719335.458, 4766528.812, 4401809.388, 4445827.481, 4490285.756, 4535188.614, 4580540.5, 4626345.905, 4672609.364, 4719335.458, 4766528.812, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null ], "startDate": "2021-11-01T00:00:00.000Z", "qualitative": false, "hideComments": false, "reportingType": "quarterly", "showProjected": false, "enableDocuments": true, "showCurrentPeriodOnly": false }, ``` ```` # Update KPI Metrics Update an investment's KPIs programmatically ## **Method and URL**
URLhttps://tactycapi.com/api/v2/kpi-metrics/{{FUND_ID}}/{{INVESTMENT_ID}}
MethodPUT
ParamsFund ID: The fund's unique ID identifier.
Investment ID: The unique ID for the investment (portfolio company)
## Sample Request The following is a sample request: ``` // Sample request curl https://tactycapi.com/api/v2/kpi-metrics/{{FUND_ID}}/{{INVESTMENT_ID}} -X PUT -H 'Authorization:{{API KEY}}' ``` ## Sample Request Body The response will provide the following fields: * **Status Code:** 200 for a succesful response * **Body:** JSON array of KPIs for each investment ````json ```SAMPLE BODY { "metrics": [ { "id": "6s0yw5c8pS", "label": "ARR", "actual": [ 2300000, 2545832.891, 2571291.22, 2597004.132, 2622974.173, 2649203.915, 2675695.954, 2702452.914, 2729477.443, 2756772.217, 2784339.94, 2812183.339, 2840305.172, 2868708.224, 2897395.306, 2926369.259, 2955632.952, 2985189.281, 3015041.174, 2784339.94, 2812183.339, 2840305.172, 2868708.224, 2897395.306, 2926369.259, 2955632.952, 2985189.281, 3015041.174, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null ], "format": { "currency": "USD", "precision": 0 }, "documents": [], "projected": [ 3984901, 4024749.622, 4064997.118, 4105647.089, 4146703.56, 4188170.596, 4230052.302, 4272352.825, 4315076.353, 4358227.116, 4401809.388, 4445827.481, 4490285.756, 4535188.614, 4580540.5, 4626345.905, 4672609.364, 4719335.458, 4766528.812, 4401809.388, 4445827.481, 4490285.756, 4535188.614, 4580540.5, 4626345.905, 4672609.364, 4719335.458, 4766528.812, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null, null ], "startDate": "2021-11-01T00:00:00.000Z", "qualitative": false, "hideComments": false, "reportingType": "quarterly", "showProjected": false, "enableDocuments": true, "showCurrentPeriodOnly": false } ] } ``` ```` ## **Response** A succesful response will result in all of the KPIs being returned for the fund, # Zapier Integration {% hint style="info" %} T[^1]his a beta feature and subject to changes before a wide release. {% endhint %} [Zapier](https://zapier.com/app/dashboard) is a product that allows end users to integrate the web applications they use and automate workflows. It connects to more than 5,000 apps, with free and paid plans including other tools in the VC tech stack such as AirTable, Affinity etc. ## Tactyc Zapier App Tactyc is available on Zapier as a Zapier **Action**. You can set up **Triggers** from other applications to automatically **add an investment** into your Tactyc fund model.
A visualization of how to integrate Zapier with Tactyc
## **Requirements** To setup a Zapier integration, please have the following: * a Zapier account * your **Tactyc API Key** (you can email us at to obtain one) * your **Fund ID** (this is shown on your home screen)
A visualization of how to identify your Fund ID
## **Quick Start** * Follow the steps on Zapier to **Create a New Zap** * Setup a **Trigger** with the app from where you want to obtain investment related data from * Setup an **Action** and select **Tactyc**
A search bar with the text "Tactyc"
* Under **Event** select **Create a New Investment**
A visualization of how to create a new investment with Tactyc venture capital fund management software
* When asked to authenticate with Tactyc, enter your **Tactyc** **API Key** and **Fund ID**
Visualization of how to allow Zapier access to your account
* To setup the **Action,** follow the instructions to map your incoming data into specific Tactyc fields (such as Company Name, Investment Date etc.)
A full visualization of how to create new investment with Tactyc VC management software
## Keep in mind * The Tactyc Zapier Action will enable you to define an investment, associated metadata (sector, geography etc.) and its **initial round only.** Any follow-on rounds will not be captured with the API or Zapier approach. To create a new investment with multiple rounds, please use provided [Bulk U](https://docs.tactyc.io/portfolio-management/adding-investments#bulk-upload)[pload](https://docs.tactyc.io/portfolio-management/adding-investments#bulk-upload) Excel option. * If your Zap triggers multiple times for the same investment, that investment will be added multiple times into Tactyc. Please ensure you have the approporiate [triggers](https://help.zapier.com/hc/en-us/articles/8496288188429-Set-up-your-Zap-trigger) or [filters](https://blog.tactyc.io/the-evolving-venture-stack-going-vc-podcast) setup in Tactyc to avoid duplication of investments into Tactyc. * Only **1 investment** can be added at at time. To add multiple investments, use the [Bulk Upload](https://docs.tactyc.io/portfolio-management/adding-investments#bulk-upload) option [or the API method. ](https://docs.tactyc.io/api-and-integrations/api-overview/adding-multiple-investments) [^1]: # Recommendations ## Recommended Technical Specifications All of Tactyc computations are done in software code (i.e. JavaScript/TypeScript) and on your browser. The speed and performance of your user experience depends heavily on your browser version. We recommend using the following browsers for Tactyc: * Google Chrome: 55 and higher * Safari: 49 and higher * Firefox: 10 and higher Given Tactyc's quantitative heavy dashboards, mobile devices are not fully supported currently. Please use Tactyc in a desktop environment. ## **Concurrent Users Warning** If multiple users are concurrently are simultaneously changing data for a fund, Tactyc will honor the **last saved** changed for an investment or a fund. This might result in not all the changes being captured if one of the users does not have the latest session data. **Recommendation:** Please avoid having multiple users change data at the same time. The best practice is to have one single user editing at a time, while other users are viewing in read-only mode. # Technical Limitations ## Recommended Technical Specifications We recommend using the following browsers for Tactyc: * Google Chrome: 55 and higher * Safari: 49 and higher * Firefox: 10 and higher Given Tactyc's quantitative heavy dashboards, mobile devices are not fully supported currently. Please use Tactyc in a desktop environment. ## Performance Limits There are certain limits of the Tactyc model that are in place to ensure there are no performance impacts when calculating and processing your fund data.
LimitLimit
Investments per fund vehicle400
KPIs per investment100
Performance cases per investment10
Number of performance cases per fund500
Number of investments importable with Bulk Import wizard400
Number of rows in the Bulk Import wizard1000
Number of Fund of Funds investments per vehicle10
Vehicles in Multi-Funds Views5
Number of Documents per Fund in Document Center200 (Solo Plan)
2000 (Enterprise Plan)
Maximum File Size per file in Document Center10MB (Solo Plan)
50MB (Enterprise Plan)
Please note that in rare instances if you fund is close to or has hit one of the limits above (for e.g. 400 investments per vehicle or 500 performance cases per vehicle), you may see performance lagginess in **Multi-Fund Views** or **Fund of Funds** features as these are computationally intensive processes that calculate performance of multiple funds together. ## **Concurrent Users Warning** If multiple users are concurrently are simultaneously changing data for a fund, Tactyc will honor the **last saved** changed for an investment or a fund. This might result in not all the changes being captured if one of the users does not have the latest session data. **Recommendation:** Please avoid having multiple users change data at the same time. The best practice is to have one single user editing at a time, while other users are viewing in read-only mode. # Technical Information * Tactyc was built using the React Framework and NodeJS. * All fund performance and investment performance computations is done on the front-end in JavaScript/TypeScript. * Tactyc uses a secure **TLS 1.2 API Gateway** to communicate with the Tactyc API backend. * Data in **encrypted in transit and at rest.** * All data is stored on Amazon Web Services provisioned databases that are **encrypted.** * Tactyc uses [Auth0](https://auth0.com/) to provide the most secure authentication layer for our clients. * Finally, we do not use your data for marketing, benchmarking or aggregation. The only time your data is used is to compute performance for your fund. Please refer to our [privacy policy](https://tactyc.io/privacy) or contact us at if you have further questions. # Login Credentials ## **To change your Tactyc password** * Go to [tactyc.io](http://tactyc.io) * Click on **Client Login.** If you’re automatically signed in from a prior session, please logout and try again. * Click on **Don’t remember your password?** and enter your email address
* You will receive an email to reset your password * Once the password has been reset using the link the email, you may login again with the new credentials. {% hint style="info" %} Please note that resetting password is only possible if you are not using your Google auto-login to access Tactyc. {% endhint %} # Invoices For Solo Plan you can download your past invoices and receipts from Tactyc * Go to [tactyc.io](https://tactyc.io) and login to your account * Go to **Accounts** > **Plan Options** > **Billing**
* This will open a Stripe portal where you can view and download invoices and reciepts from your past payments to Tactyc