An interesting thread on VCs as startups: (There’s a significant difference between Tyler’s firm and a traditional VC but the observations here are, I believe, relevant to someone raising a traditional VC fund for first time outside of an existing structure.)https://twitter.com/tylertringas/status/1164563999805104128 …
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Why can't you have a $5m fund?
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My understanding is that the constraints are a) having enough management fee to cover expenses and a salary for GPs in early years and b) 50% for investments 50% or so for follow-ons over so at $5M you’re looking at maybe 4X $100k checks a year, which seems pretty rough.
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I think those two are the rough consensus of opinions but not necessarily true. Depends on interpretation of "minimum viable" and how many GPs, but $10m is a solid Fund 1 for a solo GP and well above minimum. We were 6 months from first deck to first check into a startup. YMMV.
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You can have multiple closes and start investing after first close, those early investments can then help you get investor into later closes as investors will have a better sense of what you'll do.
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