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Venture Capital Fund Accounting and Tax
Capital call and distribution tracking, partnership returns, investor K-1s and management company support for venture capital funds.
Venture funds run on long timelines and lumpy cash: capital calls, follow-on rounds, write-downs and the occasional large exit. NexusWorks keeps the fund’s books, capital accounts and tax reporting accurate through that cycle, and looks after the management company behind it.
Our services for venture capital funds
We provide the same core services we offer every client, tailored to how venture capital funds operate:
- Tax Filing & Compliance: Form 1065 returns, investor K-1s and state filings for the fund, GP and management company.
- Tax Planning & Strategy: carried interest holding period planning and tracking of stock that may qualify as qualified small business stock for investors.
- Bookkeeping & Financial Management: capital calls, management fees, distributions and portfolio records by company and round.
- Fractional CFO Services: management company budgets, fund expense allocation and LP reporting packages.
- Company Formation: entity setup for the fund, GP and management company for emerging managers.
Emerging managers
For a first fund, the early decisions matter most: how management fees are charged, how expenses are split between the fund and the management company, and how the carry is set up in the agreement. We help emerging managers get those right before the first close so the accounting does not need to be rebuilt later.
Founders on the other side of the table
We also work with the startups venture funds invest in. That gives us a practical view of what clean portfolio company reporting looks like, which helps when you are asking your companies for quarterly numbers.
Venture funds sit within our professional services and startup work. Founders and employees can read our guide to RSU, ISO and NSO tax planning. See also our work with private equity funds and hedge funds.