Prelude Trust has failed to back the winners and cannot raise further funds. You think it is tough being an entrepreneur, try being a VC. So Prelude follows Gateway, TTP Ventures and Avlar leaving Amadeus as the sole survivor in Cambridge now that 3i has closed down their local office. The new technology business is the toughest of the tough and even some angels are cutting back.
You have to admire the style of the VCs who are taking over the management contract. Important things first – let’s get the carry percent worked out:
"certain members of the New Manager will indirectly make capital commitments equal to 1 per cent. of the total capital committed to the Purchaser, and, in addition to their pro rata share of the proceeds received by the Purchaser on realisation of the Portfolio, will receive a carried interest" calculated by reference to the Purchaser's total profit.
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