2- Joint VC Fund Structure (Simple Model)

2- Joint VC Fund Structure (Simple Model)

INIF as limited partner (LP) invests a maximum of 99%, with participation of a foreign company as General Partner (GP) providing at least 1% of shares; establishes, and registers a VC Fund in Iran.

In this model, General Partner (GP) is responsible to manage the Fund, it also benefits from following incomes:
1.    Distribution proceeds
2.    Management fee
3.    Carry (as percentage of sum total profit)

Therefore, with establishment of mutual Fund, investment in Iranian firms, startups and projects will begin.

On the other hand, INIF and GP, after five years of investing in each firm, sell and exit the shares of those firms. In fifth year of investment, the difference between initial investment and the stock price, will be titled as "Exit Proceeds" and belongs to the parties (LP and GP).