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.
Occasionally, OCV (Management Company) may need to cover payments on behalf of another entity. For example, purchasing laptops for the founding team before the company’s bank account is set up. In these situations, a receivable is booked on the Management Company’s balance sheet. Once the entity is able to process invoices, OCV Management Company will ask for expense reimbursement (at actual cost) by submitting receipts to the entity’s accounting department. It is our goal to minimize expense reimbursement occurrences.
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 | ||
| *Expenses that are typically charged to GP entities |