A Critical Decision for Fund Managers
In the evolving world of venture capital, new fund managers face a crucial decision: Where should they start? While Carta has positioned itself as the dominant player in cap table management and fund administration, VC Lab offers a fundamentally different approach specifically engineered with emerging managers in mind. At Decile Group, emerging managers deserve more than generic solutions. They require guidance, structure, and tools that enable them to achieve long-term success. This is where VC Lab comes in.
VC Lab: Building a Strong Foundation for New Funds
Unlike Carta, VC Lab is not just a software platform. It is a full-service accelerator for new fund managers. The program guides managers step-by-step through fund formation, investor relations, and compliance. Instead of jumping straight into legal documents and formation, VC Lab emphasizes strategy first. Our approach helps managers avoid costly mistakes while building operational excellence from day one.
During recent sales discussions, our team agreed that new fund managers should be directed to VC Lab rather than rushing into formation. This structured approach ensures managers understand LP agreements, regulatory requirements, and fund economics before committing to capital calls or investor obligations.
Our team also noticed broader industry trends. Outbound outreach to accelerators and funds is inherently slower than inbound demand. By combining strategic guidance with inbound marketing, VC Lab ensures managers are connected to the right resources at the right time, creating a smoother onboarding experience.
Why Emerging Managers Should Think Twice About Carta
Carta has positioned itself as the go-to platform for venture capital management. While its software is effective for cap table tracking and fund administration workflows, it lacks the specialized support and back-office services that first-time fund managers need.
Our team sees this daily. During recent client updates and pipeline discussions, we encountered several prospects, including fund managers deciding between Carta and Decile. Many expressed concerns about generic advice, especially regarding offshore entities like Cayman funds. At Decile, we take a more cautious approach, advising against risky structures that could create treasury exposure.
An additional concern is Carta's aggressive push for long-term contracts before fundraising is secured. Our team recommends a simple rule of thumb: Do not sign anything with anybody until you have signed letters of intent from LPs who are going to back your fund. This approach protects new fund managers from committing prematurely and ensures their first fund has a solid foundation.
Why Decile Group’s VC Lab Outshines Competition
- Full-Service Guidance: VC Lab is a program, not just a tool. Managers receive step-by-step support from fund formation to investor communications. Our team provides personalized reviews of legal structures, fundraising decks, and LP communications so that managers avoid costly missteps and get it right the first time. We walk through each decision point with them rather than leaving them to interpret generic templates on their own.
- Risk Mitigation: We proactively advise against high-risk structures like Cayman entities for new managers due to treasury and compliance concerns. In practice, we provide vetted alternatives, explain the downstream risks of tax inefficiencies, and connect managers with expert legal counsel so they understand not only what to avoid but also why.
- Strategic Timing: VC Lab emphasizes securing letters of intent from LPs before signing contracts. This ensures new managers are ready to fundraise before committing to long-term agreements, protecting them from aggressive sales tactics from competitors like Carta. We review outreach strategies, draft LOI language, and role-play investor conversations so managers feel confident securing commitments in advance.
- Global Perspective: With insights from Canadian fund-of-funds prospects and the South African venture community, VC Lab prepares managers for international operations. We share regional best practices, highlight regulatory nuances, and provide introductions to vetted service providers in multiple geographies, helping managers expand thoughtfully into global markets.
- Operational Excellence: Our integrated platform supports fund strategy, tax considerations, and accelerator programs without the complexity of multiple entities or service providers. Managers receive structured workflows for quarterly reporting, treasury management, and compliance, ensuring they build scalable back-office systems correctly from the start.
- Focused on Education: New fund managers gain a deep understanding of fund operations, LP relations, and tax implications, avoiding the pitfalls of generic software advice. Beyond templates, we host working sessions, provide curated readings, and facilitate Q&As with experienced GPs so managers not only “check the box” but also learn why each step matters.
Business Advisory: Guiding Strategic Fund Decisions
- At VC Lab, we recognize that emerging fund managers often face pivotal decisions that can significantly impact their fund's trajectory. One such decision is determining the appropriate amount of capital to call during the first close.
- Strategic Capital Calls: Calling too much capital at the first close can limit future fundraising opportunities. Industry best practices suggest that the first close should typically represent 20% of the fund's target size. For instance, if aiming for a $10 million fund, raising approximately $2 million in the first round is considered optimal. This approach allows for flexibility in subsequent closings and demonstrates prudent capital management to potential LPs.
- Avoiding Overextension: Requesting a substantial portion of committed capital upfront can strain relationships with LPs, especially if the funds are not deployed promptly. This can lead to concerns about fund performance metrics and may deter future investments.
- Tailored Advisory: Our team provides personalized guidance on structuring capital calls, ensuring that managers balance the need for operational liquidity with the expectations and comfort levels of their LPs. We help navigate the complexities of fund formation, from initial commitments to final closes, ensuring that each decision aligns with the fund's long-term strategy and LP relations.
Conclusion: Where to Start Matters
For new fund managers, starting with the right foundation is critical. While Carta offers tools for managing spreadsheets and cap tables, VC Lab provides the knowledge, strategy, and operational guidance required to launch and run a successful venture fund. Emerging managers who choose VC Lab not only gain access to world-class infrastructure but also avoid risky shortcuts that can compromise long-term success.
By prioritizing LP commitments first and focusing on structured guidance, VC Lab ensures new managers build strong, sustainable funds while avoiding the pitfalls of aggressive competitor sales tactics. The choice is clear. Start with VC Lab. Build your fund the right way.