Q&A Development

Q&A (Development of Questions about Nuclear)

“Advanced Nuclear” is a way to describe a range of modern  designs for generating heat that feature fission, fusion and low energy nuclear reactions (LENR) that are being developed. Fission—the only technology which has operated commercially for more than sixty years—is in its third generation, so we distinguished traditional nuclear from advanced nuclear by now calling the next generation “Gen IV” or “advanced fission.”

After the war effort and successful completion of the Manhattan Project, President Eisenhower re-dedicated the National Labs to the development of civilian energy.  He directed the Labs to develop and test ways to generated electricity and some 52 designs were developed, each with a varying approach to fuel, coolants, moderators and maintaining criticality. One such design had been specifically crafted to optimize the use of nuclear energy for the Navy, and this design used ocean water (i.e. regular water) and high pressure, both of which are readily available when operating a submarine deep under the surface of the ocean.  Not surprisingly, when the Navy ordered production of these LWRs for its submarines, an industry grew up to make those reactors and the early regulatory process evolved around that design. Thus, when utilities grew interested, the fastest route to deplying nuclear power came from ordering production of a LWR, siting the plant near a source of water and then wrapping the reactor in a system that effectively replicated the under-water environment on land. 

What is remarkable about many of the advanced reactor designs that are moving towards NRC certifications is that they are based upon reactor designs and even prototypes first conceived, built and tested at the National Labs more than 50 years ago.  Today’s developers are typically basing their designs on concepts for which there is exsting test data that points to both the strengths and weaknesses, and they are able to hasten the development process because of that data.
Subscriptions are funded directly through the AngelList platform and may be made either through wire transfors or via ACH transfers. The GP does not directly handle the funds. LPs may pre-fund their AngelList must fund their subscriptions by the funding deadline indicated on the Platform. If an LP authorizes payment of its subscription by ACH and the LP’s AngelList account balance doesn’t cover the LP’s full subscription, the remaining balance will be transferred automatically via ACH from the LP’s bank account on the funding deadline date.
LPs will generally transfer their subscription amount once per quarter. If the initial close of the Fund takes place after a fiscal quarter has already begun, the period between the first and second transfers may be less than a quarter.
LPs must subscribe to a Rolling Venture Fund through the AngelList platform. Subscriptions commit an LP to the next quarterly fund and are auto-renewing, unless canceled. Non-payment of the subscription constitutes a cancellation.
For Rolling Funds without a minimum quarterly commitment, subscription amounts may be increased, decreased, or canceled at any time in accordance with program requirements. Unless canceled, modified, or rejected, an LP’s subscription will automatically apply to subsequent funds. (Note: Nucleation has opted to remove its minimum number of quarters requirement.  This means that our LPs may cancel, increase or decrease their subscription at any time.)

You will receive annual tax documents for any investments that receive income in a given tax year. Tax returns and K-1’s are only required to be filed with the IRS if there is taxable income or loss to report.  If none of the investments made during the quarter you subscribed to generated taxable income or loss, no K-1 will be required.

 

AngelList provides LPs a streamlined investing experience. Below is a list of features offered to LPs on AngelList:

  • Detailed portfolio and insights dashboards with real-time reporting
  • Online quarter capital reminders, secure payment portal and distributions
  • K-1s and tax docs
  • Automatic and professional valuation updates
  • Angel investment community which provides you with a selection of investment opportunities
  • Invitations to AngelList LP and GP events

It’s free for investors (the Limited Partners or “LPs”) to gain access to the AngelList platform, however, every type of deal, whether a direct investment, a syndicate or a rolling fund, bears fees for use of the AngelList platform and its services as well as to compensate the fund managers or syndicators, and these are born ultimately by the LPs.

When investors make an investment, some portion of their capital is retained to cover setup, management or administrative fees. The amount of fees are specific to each Fund or Syndicate (SPV) and are explained during the closing process.

Additionally, venture investing traditionally also bears a “success” fee called “carried interest.”  So, if the investment returns a profit, a portion of that profit (=”carry”) is retained by the fund lead, general partner or the investment advisor.

  •  
  • Now, each investor receives back their full investment first ($10k each, so $100k total). Of the remaining $400k, $80k are retained as carry (20%), and $320k are distributed to investors.
  • In total, each investor receives back $42k ($10k + 10% of $320k).

Traditional Funds

When investing in a syndicate, investors generally pay a management fee and carry to the fund lead.

  • Management fees are usually 2% annually of the fund’s total amount.
  • Carried Interest is generally 20%, applied to proceeds from an investment only after all of the LPs have had all of their original principal returned, inclusive of any amounts that were reserved to pay fees. Once 100% of principal has been repaid, then the LP receives 80% of the net proceeds and the GP receives 20% of the remaining proceeds. 

For Example:

  • Imagine a $1M fund that an investor invests $100,000 into.
  • Imagine the fund has a positive return, and the investor is due a distribution of $1M. The investor receives the amount they invested ($100,000), and then 80% of the remainder (80% of $900,000 = $720,000).

To sign up for the Nucleation Capital rolling fund, you will need the fund link invitation, which will enable you to access the platform, register for an account, submit your proof of accreditation, select your subscription terms, approve your agreement to the fund documents and choose a funding method. Nucleation Capital will provide you with subscription support, should you need it.

If it’s your first time making an investment with a given investing entity, you’ll also need to go through AngelList’s fraud prevention process. If you’re a U.S. investor, you can simply enter a few pieces of information (Legal Name, Address, Social Security Number), and AngelList will verify your identity. If you’re a non-US investor, you’ll also need to upload a valid identity document from your country of residence.

Q&A (Development)

STAGE NEW Q&A HERE

 

There are only two ways to address climate change: 1) reduce emissions from human activity and 2) reduce the accumulated emissions from historic activities.  CCUS addresses both these areas in that the technologies can be used to try to capture new emissions from dirty sources of energy or they can be used to capture historic emissions. There is a clear need for the latter activity but there is also concerns by many that using CCUS to justify the continued use of fossil energy will allow such such groups social license to continue to emit carbon. Right now, we need to make sure that we can develop these technologies, since they are not yet available at any scale, and then we need to ensure that we can use them to solve the carbon problem, rather than prolong it.  The way to use carbon capture safely is to prevent it from being used in the context of predatory delay/ greenwashing campaigns by fossil fuel companies or utilities, which may seek to use the hypothetical existence of carbon capture to increase investments in near-term carbon intensive infrastructure. Hypothetical carbon capture is behind several major oil company greenwashing efforts to justify delaying near-term emissions reductions.

Another possibility is that some GPs simply chose to avoid doing a serious technical analysis themselves, possibly if they harbor an antinuclear bias or they are fearful of pushback from LPs. Due to the extended conversation that needs to happen when one breaks the nuclear “taboo,” some GPs may simply wish to avoid raising the subject. As we know from experience, it takes a long period of review and learning to be really able to understand nuclear’s true performance as a technology. Thus, though there are a number of venture firms which have made an “out-of-the-ordinary” investment in nuclear here or there (Venrock, Founders Funds, Vulcan Ventures, DCVC, etc.), most venture firms’ focus is elsewhere, primarily in software ventures, where there are far fewer risks to overcome before liquidity.

Subscribing LPs get exposure to all deals in the quarters they’re subscribed to. For example, if an LP joins the fund in Q5 and remains subscribed for the next three quarters, then they would only get exposure to the investments made in Q5, Q6, Q7, and Q8.

Subscriptions are funded directly through the AngelList platform and may be made either through wire transfors or via ACH transfers. The GP does not directly handle the funds. LPs may pre-fund their AngelList must fund their subscriptions by the funding deadline indicated on the Platform. If an LP authorizes payment of its subscription by ACH and the LP’s AngelList account balance doesn’t cover the LP’s full subscription, the remaining balance will be transferred automatically via ACH from the LP’s bank account on the funding deadline date.
LPs will generally transfer their subscription amount once per quarter. If the initial close of the Fund takes place after a fiscal quarter has already begun, the period between the first and second transfers may be less than a quarter.
LPs must subscribe to a Rolling Venture Fund through the AngelList platform. Subscriptions commit an LP to the next quarterly fund and are auto-renewing, unless canceled. Non-payment of the subscription constitutes a cancellation.
For Rolling Funds without a minimum quarterly commitment, subscription amounts may be increased, decreased, or canceled at any time in accordance with program requirements. Unless canceled, modified, or rejected, an LP’s subscription will automatically apply to subsequent funds. (Note: Nucleation has opted to remove its minimum number of quarters requirement.  This means that our LPs may cancel, increase or decrease their subscription at any time.)

You will receive annual tax documents for any investments that receive income in a given tax year. Tax returns and K-1’s are only required to be filed with the IRS if there is taxable income or loss to report.  If none of the investments made during the quarter you subscribed to generated taxable income or loss, no K-1 will be required.

 

AngelList provides LPs a streamlined investing experience. Below is a list of features offered to LPs on AngelList:

  • Detailed portfolio and insights dashboards with real-time reporting
  • Online quarter capital reminders, secure payment portal and distributions
  • K-1s and tax docs
  • Automatic and professional valuation updates
  • Angel investment community which provides you with a selection of investment opportunities
  • Invitations to AngelList LP and GP events

It’s free for investors (the Limited Partners or “LPs”) to gain access to the AngelList platform, however, every type of deal, whether a direct investment, a syndicate or a rolling fund, bears fees for use of the AngelList platform and its services as well as to compensate the fund managers or syndicators, and these are born ultimately by the LPs.

When investors make an investment, some portion of their capital is retained to cover setup, management or administrative fees. The amount of fees are specific to each Fund or Syndicate (SPV) and are explained during the closing process.

Additionally, venture investing traditionally also bears a “success” fee called “carried interest.”  So, if the investment returns a profit, a portion of that profit (=”carry”) is retained by the fund lead, general partner or the investment advisor.

  •  
  • Now, each investor receives back their full investment first ($10k each, so $100k total). Of the remaining $400k, $80k are retained as carry (20%), and $320k are distributed to investors.
  • In total, each investor receives back $42k ($10k + 10% of $320k).

Traditional Funds

When investing in a syndicate, investors generally pay a management fee and carry to the fund lead.

  • Management fees are usually 2% annually of the fund’s total amount.
  • Carried Interest is generally 20%, applied to proceeds from an investment only after all of the LPs have had all of their original principal returned, inclusive of any amounts that were reserved to pay fees. Once 100% of principal has been repaid, then the LP receives 80% of the net proceeds and the GP receives 20% of the remaining proceeds. 

For Example:

  • Imagine a $1M fund that an investor invests $100,000 into.
  • Imagine the fund has a positive return, and the investor is due a distribution of $1M. The investor receives the amount they invested ($100,000), and then 80% of the remainder (80% of $900,000 = $720,000).

To sign up for the Nucleation Capital rolling fund, you will need the fund link invitation, which will enable you to access the platform, register for an account, submit your proof of accreditation, select your subscription terms, approve your agreement to the fund documents and choose a funding method. Nucleation Capital will provide you with subscription support, should you need it.

If it’s your first time making an investment with a given investing entity, you’ll also need to go through AngelList’s fraud prevention process. If you’re a U.S. investor, you can simply enter a few pieces of information (Legal Name, Address, Social Security Number), and AngelList will verify your identity. If you’re a non-US investor, you’ll also need to upload a valid identity document from your country of residence.