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.