Already an Angel? Become a VC in two working sessions, and we will invest in your fund. Seats close Sept 15.
Save My Free Seat
Cohort 22 launches September 10. Bring a founder, an angel, or an LP who belongs in the room. The VIP Launch Mixer is free and online.
Reserve a Spot
Previous Post
Next Post
0

Asked by

Community Member

on

in

General

Is it realistic for LPs to invest in part-time GPs managing funds under $15M for pre-seed/seed investments?

Looking at the pre-curriculum in the  there is a table which helps to relate team size to fund size (attached). My question is how likely is it that an LP would be willing to put in an investment into a GP who is doing this part time i.e. what is shown for funds under $15M? Is it realistic to raise a pre-seed/seed fund with only a part-time commitment?
1 See in Base
0

Answered by

Community Member

on

For any fund at $15 MM and under, the fees are not large enough for the General Partner or Partners to make a living. As a result, it is expected that the General Partners are either (a) not full time or (b) working on a second fund. In addition, some Limited Partners may not ask the GP to make a capital contribution to the fund in the smaller sizes. Limited Partners make investments into part-time managers all of the time. In such cases, it is very important for value add and secret sauce to be world-class.

Join VC Lab

Raising your first fund? VC Lab has helped launch 950+ venture firms, with no fees and no equity taken. The average Start Fund reaches first close in 58 days.
Apply Now