Dimov Audit
855-622-9009

Venture capital fund audit

Dimov Audit performs the annual audit that limited partners (LPs) require of venture capital funds.

  • Scoped from the limited partnership agreement (LPA). One of our senior auditors reads its audit clause first.
  • Marks traced. We test portfolio marks against financing and market evidence.
  • SPVs included. We audit special purpose vehicles (SPVs) with the main fund.
Get a quote from the LPA

Send the LPA and schedule of investments for a confidential quote.

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  • 500+

    Completed audits

  • AICPA

    Peer-reviewed

  • 50

    States served

Venture capital audit for funds and SPVs

Within our fund audit services, we run a venture capital audit for:

  • Venture capital funds.

    Buying equity directly from private companies.

  • Funds of funds.

    Investing in other venture funds.

  • SPVs.

    Set up for a single deal.

  • First funds.

    We plan the audit from the first close.

Portfolio companies raising a round can use our financial statement audits.

When a venture capital fund audit is required

Look for any audit duty in the fund's agreements and in the rules for the adviser. The Securities and Exchange Commission (SEC) requires no annual audit for registration alone.

Registered adviser or exempt reporting adviser

Exempt reporting advisers rely on the registration exemption in section 203(l) or 203(m) of the Investment Advisers Act and still file reports on Form ADV.

Advisers claiming the venture capital adviser exemption advise only venture capital funds.

Why an exempt adviser still gets an audit

Exempt advisers take on an audit under the LPA or an investor agreement, since the SEC applies its custody rule only to advisers registered or required to register.

How we test portfolio company valuations

The general partner sets the marks; Dimov Audit tests them. For early-stage companies, the general partner relies on unobservable inputs (its own assumptions about what market participants would use).

Where a priced round is still relevant, we test significant adjustments from it:

  • Time since the round.Company progress and market changes after it closed.

  • Milestones.Revenue, product and financing targets hit or missed.

  • Preferences.Rights that differ between share classes.

Audited venture capital fund financial statements

The general partner receives:

  • Auditor's report.

    An opinion on the fund's financial statements for LP distribution.

  • Statements and notes.

    With the schedule of investments at fair value.

  • Management letter.

    Findings and recommendations for the general partner, where applicable.

  • Partnership return and K-1s.

    If you ask, we prepare these for the fund and its LPs.

The general partner sees a draft first.

Audit fees for a venture fund

Dimov Audit prices each venture capital fund audit from these factors:

  1. 1Portfolio companies held, and marks moved since the last priced round
  2. 2SPVs audited alongside the main fund
  3. 3Whether the manager's team has reconciled the capital accounts at year-end
  4. 4The report deadline in the LPA or investor agreements

Light end: a single fund with a handful of portfolio companies, no SPVs and reconciled capital accounts.

These are the factors, not a quote.

Related audit services

If you also manage a liquid fund, see our hedge fund audit services.

Fund and SPV audits under one quote

If you formed SPVs deal by deal, request coordinated fund and SPV audits, or talk to one of our auditors about timing first.

Send the LPA and a list of SPVs for one confidential quote.

Quote the fund and its SPVs
George Dimov, CPA

Reviewed by George Dimov, CPA. Dimov Audit audits venture capital funds for fund managers across all 50 states.

Connect with Dimov Audit

Our dedicated team is ready to assist you on your path to financial success.

Email
hello@dimovaudit.com
Phone
855-622-9009
New York Office

24 Mercer St, 2nd Floor, Suite 214
New York, NY 10013
United States