The Emerging Manager’s Guide: How to plan your Fund I

Emerging Managers are typically considered those who have launched less than three funds or are launching a fund under $200M, with limited prior experience managing their own VC fund but oftentimes bring fresh perspectives and innovative strategies. In 2024, they make up approximately 14%* of the Venture Capital market.

Historically, becoming a solo General Partner (GP) came with overwhelming hurdles considering the complexity of operating a fund and the associated cost. In 2019, AngelList brought a new software to market and paired with Belltower’s, our native fund admin, services created an end-to-end offering that helped democratize venture capital investing by making it easier for small funds to launch and scale. Today, AngelList and Belltower support hundreds of fund managers with over $16B of GP fund assets under management.

As a member of AngelList's Growth Team, I've spent the last four years speaking with over 1,000 emerging or aspiring venture fund managers, helping them find the best solutions for forming and managing their venture capital funds. From starting their investor journey by launching their first SPVs to oversubscribed funds backed by prominent LPs, AngelList has had the opportunity to partner with them through each stage.

Even if managers have prior experience working at a large venture firm, raising their first fund comes with an array of challenges and anxieties that they may not yet be aware of. A question I hear frequently from aspiring managers is, “I have investors and deal flow, but what do I really need to consider to start my own fund?”

To help more Emerging Managers, we decided to consolidate the best practices we’ve seen over the years and create a comprehensive guide, “How to Plan Your Fund I.”

Moving Venture Forward

While tech platforms have made starting a fund easier than ever, it remains a nuanced process. GPs must consider portfolio construction, capital call schedules, check sizes, and follow-on investing, all without knowing the exact size their fund will close at. AngelList’s end-to-end solution, pairing our software with Belltower’s fund admin services, provides the necessary services for a fund under one roof.

In addition, the challenges for Emerging Managers have evolved significantly over the years. Fundraising has become much more difficult, especially in the face of unprecedented events like the COVID-19 pandemic and the Silicon Valley Bank run. LPs are more risk-averse than ever and, with high interest rates, managers need to make a compelling case for why their fund is uniquely positioned to outperform others.

The creation of this guide was inspired by the many former operators, founders, and fund employees I’ve worked with, each with their unique perspectives and deal flow. Their passion for their industries and their vision for empowering the next wave of startup founders is truly infectious.

Download your copy of 'How to Plan Your Fund I ' for consolidated insights and learnings from other first-time fund managers below to help you confidently start your venture capital journey. Ready to launch your fund? Connect with a member of the AngelList team to learn more.

The Emerging Manager’s Guide: How to plan your Fund I

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*(PitchBook)​ (Venture Capital Journal)​​ (PitchBook). For additional context, across all private market funds, vehicles managed by emerging managers accounted for about 48.6% of total fund closes over the past five years​ (PitchBook)​.