Reaching a first close is one of the most critical milestones for emerging venture funds. It signals early validation from LPs and creates the momentum needed to move from fundraising into active investing. Yet, many funds struggle to reach this point, even when some appear similar on the surface.
This raises an important question: what actually differentiates funds that successfully close from those that remain stuck in fundraising? While many would assume that factors such as age, team size, or persistent LP outreach may play a decisive role, the data suggests a more nuanced picture.
This article analyzes data from almost 700 emerging venture funds that successfully completed Decile Group’s VC Lab accelerator program and focuses on two key areas:
- What does not matter: Factors that show no meaningful differences between funds that close and those that do not.
- What matters: Factors that consistently distinguish funds that successfully reach a first close.