How common is it for a VC instead of charging their LPs a management fee to charge a

[Albert]

How common is it for a VC instead of charging their LPs a management fee to charge a

Hi everyone,

We're currently raising a pre-seed round and a VC offered us a term sheet.

In the call, they've mentioned that besides the term sheet, we would need to sign a letter for accepting a "mentoring fee" as a certain % of the funding. They've explained that this fee is there as they can't charge a management fee to their LPs for certain legal reasons.

Has anyone come across something similar, and what are your thoughts?

TIA

submitted by /u/kalabunga_1
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