OCV manages expenses for many entities. These include OCV (the Management Company), OCV funds, and OCV companies.
As a default practice, we ask our vendors to bill the appropriate entity for which services/goods were rendered.
OCV has a designated expense account for standard pre-launch systems that transfers to the company's credit card upon activation. When founding team members need to purchase equipment or services before their company's bank account is set up, they must expense these items personally and later submit for reimbursement to their entity's accounting department. See also Corporate Credit Card. Occasionally, OCV (Management Company) may need to cover payments on behalf of another entity. In such cases, these payments are recorded as receivables on the Management Company's balance sheet. Once the entity can process invoices, OCV Management Company requests reimbursement at actual cost by submitting receipts to the entity's accounting department.
Table below highlights typical expense categories by entity type.
OCV (Management Company) | OCV Funds | OCV Companies |
Management Company operating costs (i.e. payroll for OCV team, systems, etc.) | Deal-specific expenses (primarily legal, travel, etc.) | Company operating costs (payroll, fixed assets, systems subscriptions, etc.) |
Content production for OCV blog posts including new company launch announcements | Fund admin fees | Company-specific legal fees (including entity formation), accounting & tax services, outsourced HR & recruiting services, content writers, etc. |
OCV-specific legal & accounting needs and non-company specific work that benefit all OCV companies | Tax services for funds | Corporate taxes |
Expenses related to maintaining OCV’s company name reserve | ㅤ | ㅤ |
*Expenses that are typically charged to GP entities | ã…¤ | ã…¤ |
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