What this models

You pledge a slice of founder equity into the EFLF at seed. Over ~10 years the diversified pool returns real cash — even if your own company fails. You then roll some or all of those proceeds into the FFOF and let them compound for another 10–25 years.

Everything below is shown net of fees and carry — the EFLF's flat fee and 10% carry, and the FFOF's 1.5% management fee and 15% carry.1

The two assumptions you set

EFLF performance is fixed at the average outcome of the EFLF Monte Carlo — a 1.57× pool MOIC over 10 years.2 What you control is how much you pledge, how much you roll forward, how the FFOF performs against real venture benchmarks, and how long you let it compound.

$1,000,000
The dollar value of founder shares you pledge into the pool at seed.
100%
How much of your net EFLF proceeds you reinvest into the follow-on fund versus take as cash. Rolled capital compounds; cash does not compound and is taxed on distribution.
Top Quartile 75th pct · 4.0× gross / 10yr
Where the FFOF lands on the real venture-return distribution, from median to top decile.3
15 yrs +10 EFLF = 25yr total
How long rolled capital stays invested across successive FFOF vintages after the 10-year EFLF phase.
Projected Outcome
Pledge of Equity into the EFLF at seed, roll of the proceeds into the FFOF at performance, and after your founder equity is projected to be worth — a return on what you pledged, even if your own startup failed.
EFLF Net Proceeds
After the EFLF flat fee and 10% carry, at year 10.
Rolled Into FFOF
The portion reinvested to compound in the follow-on fund.
FFOF Ending Value
Rolled capital after FFOF fees and carry, at the end of the horizon.
Cash Taken En Route
EFLF proceeds not rolled forward, taken as distributions.
Total Wealth
FFOF stake plus cash taken — your projected total.

Projected wealth over the full horizon

The shared early climb is the 10-year EFLF phase. At year 10 your proceeds split — a portion rolls into the FFOF and compounds, the rest is taken as cash. The three lines show how the same pledge fares at median, top-quartile, and top-decile venture performance; your selected tier is highlighted.

Your scenario, line by line

Every figure that produced the result above, net of fees and carry.

Line itemValue

The ladder starts at seed.

The earlier you pledge, the cheaper your equity and the longer it compounds. The entry point is the EFLF.

How the math works
EFLF phase (Years 0–10): Your pledge earns the EFLF's average pool MOIC of 1.57× over 10 years.2 From the gross proceeds we deduct a 10% carried interest on profit and a flat fee of $5,000/year for 10 years ($50,000 total), to give net proceeds.

The roll: You reinvest a chosen share of net proceeds into the FFOF; the remainder is taken as cash (held flat, nominal).

FFOF phase (Years 10 to 10+N): The performance slider sets a gross fund multiple — Median 2.5×, Top Quartile 4.0×, Top Decile 6.0× over a standard 10-year cycle — interpolated and converted to a gross annual return.3 We compound that gross rate over your chosen horizon (assuming capital is redeployed across successive FFOF vintages), then deduct a 1.5% annual management fee charged on the capital you rolled in — 1.5% × your roll × years, not on the growing NAV — and a 15% carried interest on the profit above that committed capital.

Total wealth = FFOF ending value + cash taken. All figures are pre-tax. The §351 conversion into the All Hands ETF is what later makes these holdings liquid and tax-efficient, but is not separately modeled here.

Important disclosures

Hypothetical and illustrative. Every figure shown is a deterministic projection, not the actual return of any account, fund, or investor. No representation is made that any investor has achieved or will achieve results similar to those shown. Projections are prepared with the benefit of hindsight, involve no capital at risk, and ignore the sequencing, timing, and volatility of real returns.

Simplifying assumptions. The model applies a single point estimate for EFLF performance and a single smooth annual rate for FFOF performance; in reality both are highly variable and path-dependent. It assumes capital can be redeployed across successive FFOF vintages at a constant rate, that the EFLF pool achieves its modeled average, and that rolled proceeds are reinvested without frictional cost or idle periods. Actual venture funds experience J-curves, illiquidity, capital calls, and vintage dispersion that this model does not capture.

Benchmarks are not promises. FFOF performance tiers are anchored to third-party venture benchmarks (Cambridge Associates, Carta, Preqin) and are used only to bracket a plausible range. Selecting "Top Decile" does not mean the FFOF will perform at that level; most funds do not. Past performance of the venture asset class is not indicative of future results.

Fees, carry, and taxes. Results are net of the modeled EFLF and FFOF fees and carry only. They are pre-tax. Your actual tax treatment — including any §351 conversion — depends on your circumstances and applicable law, and could materially change your net outcome.

New products; no operating history. The EFLF and FFOF are new products with no operating history. Structure, terms, fees, and the availability of any roll-over or conversion remain subject to change.

Not an offer; not advice. This calculator is for informational and illustrative purposes only. It is not an offer to sell, or a solicitation of an offer to buy, any security or interest in any fund, and is not investment, legal, accounting, or tax advice. Consult your own advisors.

1 Modeled fee terms: EFLF — $5,000 flat fee per year for 10 years plus 10% carried interest on profit. FFOF — a 1.5% annual management fee charged on the capital rolled in (flat: 1.5% × capital × years, not on the fund's growing NAV) plus 15% carried interest on profit above invested capital. No preferred-return hurdle, clawback, or fee offsets are modeled. Final terms are set in each fund's offering documents and may differ.

2 EFLF expected performance is fixed at the mean (average) pool MOIC of the EFLF Monte Carlo simulator at its default calibration (≈1.57× over 10 years; pool of ~200 companies, 65% failure rate, power-law tail α = 2.42, calibrated to AngelList data per Othman, 2019). The mean is pulled upward by rare power-law winners; the median pool outcome is lower. A single point estimate cannot capture the full distribution — see the simulator for the range.

3 FFOF performance tiers are calibrated to third-party venture-fund benchmarks: median net TVPI ≈ 1.5–1.8× and ~12–15% net IRR; top-quartile ≈ 3.0×+ TVPI and 25%+ net IRR; top-decile ≈ 5× net TVPI (Cambridge Associates, Carta State of Private Markets, and Preqin, as summarized in 2026). The slider's gross fund multiples (2.5× / 4.0× / 6.0× over a 10-year cycle) are set so that, after the modeled FFOF fees, net outcomes approximate these published net figures. Benchmarks vary materially by vintage and strategy and are not a forecast.

Section 351 tax-deferred ETF conversions are an evolving financial and regulatory product and are not modeled in the figures above. All 351 conversions must comply with applicable IRS and SEC regulations in effect at the time of conversion, which is subject to change. Rising Tide Management makes no guarantee that a 351 conversion will be available or will achieve any particular tax outcome. Consult your tax advisor.