Raising a VC fund in 100 days

hunterwalk.com

8 points·hunterwalk··7 comments

Nice read, thanks for reflecting on the process!

Did you try anything creative with the fund terms or was it pretty standard VC fund structuring? I've heard that there's often LP pushback against changing standard terms, even if the changed terms might better align LP and VC incentives. I'm also curious if LPs view investment in a micro-fund the same as they would a larger, traditional VC fund.

we ended up with pretty standard terms. our lawyers had lots of info on data from other funds they helped raise and our LPs gave us their feedback as well. the reality is that if you're looking to make money being a smaller VC, it's really about raising multiple funds over time, so the opportunity to work with the best backers trumped any small concessions we could have gotten from less sophisticated investors.

Thanks for the response, Hunter! Looking forward to seeing where y'all invest.

Congratulations on raising your fund!

How open to investments outside of California and New York are you? I noticed that vertical marketplaces are one of your example of Bottom Up Economy startups, and Boston has a large number of these: http://startupsinboston.com/type/marketplace/

Jay - i think Boston has some strong entrepreneurial talent but as a startup ourselves, we're trying to focus on critical mass in a few geo areas to start.

I enjoyed reading this piece a lot. I felt like there were several pieces of advice in here that apply to Startups and it's a nice window into what raising a fund looks like.

Thanks for sharing.

appreciate it. the world of institutional LPs was completely new to me when i started this process so was actually perversely fun figuring it out

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