Start Fund FAQ
Fund Structure and Basics
What is the Start Fund? Start Fund is a new fund structure by Decile Group that allows Investment Leads to launch a fully functional, institutional-grade VC fund in less than one business day with no upfront expenses. The Start Fund structure has been optimized to reduce cost and complexity by over 5 times. As a result of these cost savings, the fund size can be as small as $150K, and limited partner investments can be as small as $10K.
The Start Fund is now publicly available through a Waiting List after being exclusively available for members of the VC Lab network and designed for investors who want to move quickly and break into venture capital.
How quickly can I launch a Start Fund? Launching a Start Fund and getting a bank account takes less than one business day. Once set up, you can then start sending out Limited Partner Agreements (LPAs) and even make investments. There are no fees and expenses to get started. The process is:
- Apply at https://DecileGroup.com/start-fund (2 minutes)
- Complete and pass the mandatory KYC/ AML process (10 minutes)
- Sign the Investment Lead Agreement and Cornerstone Start LPA (5 minutes)
- Get the bank account and Decile Hub set up (less than 1 business day)
- Start sending out LPAs and collecting wires to make investments
What is the minimum fund size and closing amount of a Start Fund? The minimum size of a Start Fund is recommended to be $150K USD, allowing the Investment Lead to complete multiple investments. Decile Group recommends that Investment Leads target $1 MM USD or more for Start Funds to secure maximum portfolio diversification. A Start Fund can be closed with as little as $150K USD wired in from limited partners.
What is the structure of the Start Fund? The Start Fund has a three-entity structure with a management company (ManCo), general partner (GP), and limited partner (LP). Decile Group and its subsidiaries or delegates fill the ManCo and GP, reducing the overall structural complexity. The Investment Lead oversees the LP, which can be moved at any time to their own ManCo and GP structure. The LP is portable, and the Investment Lead has the option to switch the ManCo and GP.
What is the difference between Start Fund and a traditional fund structure? In order to achieve cost and operational efficiencies, the Start Fund differs from a traditional venture capital fund in a few different ways:
- The manager in a Start Fund is called an Investment Lead with different control
- The Start Fund has one entity, the LP, versus three entities of a traditional structure
- There is only one capital call in a Start Fund, versus multiple calls in a traditional structure
- The Start Fund has a mandatory investment committee handled by Decile Group
- The Start Fund does not support venture partners directly
- Traditional funds require minimum $5M to justify costs ($50-100K legal, $25-50K/year maintenance for 10+ years)
What are the key benefits of Start Fund? The Start Fund is considerably faster, cheaper, and better than any fund formation alternative on the market today. Here are a few of the many benefits:
- Start a venture capital fund for $0
- Launch the fund in less than one business day
- Build a real venture capital track record
- Start closing LPs and investing immediately
- Low fixed fee structure with no hidden expenses
- Get the leading software to run the fund for free
- Access the top-rated fund admin of Decile Partners
- Have the compliance and tax managed and handled
- Leverage an experienced investment committee to help
- Raise capital from smaller LPs and close on a smaller fund size
- Count the Start Fund as part of your firm AUM
When did the Start Fund launch? The Start Fund launched privately on February 24th, 2025, in a limited trial for the VC Lab network with six initial funds created. The product was leaked on social media in early June, 2025, and became a hit.
Roles and Responsibilities
What is the role of the Investment Lead? The Investment Lead sources and closes limited partners, identifies investments, tracks portfolio progress, approves reports, and manages LP communications. The main difference from a traditional manager is that an investment committee makes the final investment decision with help from the Investment Lead.
Can I call myself Managing Partner or General Partner of a Start Fund? No, you cannot use the titles Managing Partner or General Partner as there are legal and fiduciary implications. You can refer to yourself as Managing Director. In the Start Fund structure, Decile Group is the General Partner and you are the Investment Lead.
How many partners or general partners can be involved in a Start Fund? Partners or general partners in a Start Fund are called Investment Leads. The Start Fund may have one to four Investment Leads. When there is more than one Investment Lead, the split of the Start Fund economics is set in the Investment Lead Agreement. The Investment Lead can also be an entity, which supports maximum flexibility to involve multiple parties. It is recommended that all parties working together on a Start Fund have extensive experience working together, as well as vesting and other legal protections against partner disputes.
Can I add additional Investment Leads after launch? Yes, we can add additional Investment Leads later if needed. There is no requirement to have all partners identified at the beginning of the fund.
Is there a time commitment requirement for Investment Leads? No, there is no specific requirement on time spent on the fund. The Investment Lead Agreement does not preclude full-time employment elsewhere.
What happens if the Investment Lead fails to fulfill responsibilities? If the Investment Lead fails to fulfill core responsibilities, they will be notified and given 45 days to resolve the situation. If unresolved, Decile Group may terminate the agreement and either return unused capital to LPs or manage the portfolio until exit, which includes paying carried interest.
Investment Process and Decision Making
How does the investment decision process work? The Investment Lead prepares information for the investment committee, submits it through Decile Hub, and the IC reviews within a couple of business days. The IC is expected to approve most investments unless there are extreme terms, unusual legal/compliance risks, or conflicts of interest.
How does the Investment Committee approval process work? The IC process is: 1) You submit a Deal Memo via Decile Hub with supporting documents 2) The IC reviews and may ask follow-up questions 3) They approve the investment in 3 days or less. There are no thresholds where IC involvement is waived.
Who are the members of the Investment Committee? Decile Group serves as the Investment Committee in the Start Fund structure. The IC's role is to ensure investments are legitimate and prevent major problems like fraud, structural, fiduciary, compliance and legal issues for the fund.
Who signs the investment documentation and wires the capital? Decile Group signs the investment documentation on behalf of the Start Fund. Each Start Fund has an FBO (For Benefit Of) bank account managed by Decile Group that sends wires to companies upon the completion of the documentation.
Who signs the investment documentation and wires the capital? Decile Group signs the investment documentation on behalf of the Start Fund. Each Start Fund has an FBO (For Benefit Of) bank account managed by Decile Group that sends wires to companies upon the completion of the documentation.
Can Investment Leads invest in companies where they already have stakes? This may be a conflict of interest. The Decile Group investment committee (IC) would go through an approval process to determine if the fund can make the investment.
Economics and Fees
What are the fees in a Start Fund? The Start Fund charges a 1% Management Fee and a 1% Operations Fee covering all setup and annual costs. The Investment Lead still receives 18% of the carried interest, while the remaining 2% covers fund expenses like legal and compliance fees.
How are management fees distributed? The Investment Lead receives 10% (1%/year for 10 years) of the LP's capital commitment, and 10% goes to Decile Group for managing the fund. Upon closing, Start Funds receive ½ the management fee in year 1 and ½ in year 2.
Can the carry structure be modified over time? No, the 18% carry to Investment Lead and 2% to Decile operations cannot be modified. Start Fund is a product with no customization to keep costs low.
Fund Timeline and Operations
What is the fund timeline? Start Fund is a 10-year fund with a 3-year fundraising period. There are no capital calls in the Start Fund structure.
How does capital calling work with a Start Fund? Each limited partner admitted to the Start Fund has one capital call of 100%, with fees automatically allocated at the time of wire. Investment Leads can create a virtual capital call structure by having LPs close on additional capital over the three-year fundraising period.
Can the fund be shut down without payments? Yes, Decile Group and Investment Lead are compensated only from money invested in the fund. If the fund doesn't raise money and make investments, it will be shut down.
What operational support does Decile Group provide? Decile Group provides comprehensive support including a SaaS platform, fund formation, bank account setup, fund administration, basic legal, and tax preparation. All regulatory matters, financial reporting, and compliance aspects are handled by Decile Group.
Geographic and Regulatory Restrictions
What geographies are supported by a Start Fund? A Start Fund cannot accept limited partners from Europe, India, Singapore, Japan, or UK. Start Funds also cannot have Investment Leads living in Singapore and all funds are domiciled in Delaware.
Which countries can Start Fund invest in? Start Fund is restricted from investing in sanctioned countries and those with ultra-difficult regulatory environments such as India. You can invest in Delaware and Singapore entities.
Which countries can provide Limited Partners? Start Fund cannot receive capital from Limited Partners in India, Singapore, Japan, EU, or UK. Family members can invest as long as they meet accreditation standards.
Fund Transition and Portability
Will a Start Fund count towards my VC track record? Yes. Start Fund is a real venture capital fund with full professional tools and operations. The fund can be moved under a different management company (ManCo) at any time, allowing you to bring your AUM and successes into your next fund or firm.
How do I transition from Start Fund to a traditional structure? When you're ready to launch a traditional fund structure, you set up your own Management Company and GP entity (which Decile Group can assist with). Once established, Decile Group creates a transfer agreement to move your Start Fund at a mutually agreed date.
Can I take over the GP function of my Start Fund? When the Investment Lead wants to become the official GP, they need to set up a general partner and management company, which Decile Group can assist with. Once these are established, Decile Group will create a transfer agreement for the LP to be moved at a mutually agreed date.
Can I launch additional funds while running a Start Fund? At any time while running a Start Fund, the Investment Lead can launch a new fund, including an additional Start Fund or a traditional Fund II. The process begins by notifying Decile Group, who ensures there are no conflicts before providing next steps.
Can I launch Fund II while still operating my Start Fund? Yes, if you've closed on capital in your Start Fund and are getting interest from institutional LPs, you can launch Fund II with new LPs and stop fundraising for your Start Fund. Start Fund is designed specifically for this scenario.
Limited Partner Management
Do I have direct visibility into LP commitments? Yes, you have direct visibility into LP commitments and the bank account for your fund through Decile Hub. You manage those relationships personally through Decile Hub and Decile Pro.
Are Start Funds suitable for institutional LPs? Start Fund may be sub-optimal for certain institutional LPs and larger family offices because these limited partners may require negotiations, capital calls, audits, and substantial reporting requirements. These LPs typically cannot invest in new managers (Fund 1s) due to restrictions.
Compliance and Legal
Who handles compliance and legal matters? The Decile Group manages all compliance and legal matters for Start Funds, including KYC/AML checks, regulatory filings, and conflict resolution. If compliance issues arise, Decile Group works directly with the affected parties to resolve them.
What compliance documentation is required? We need a passport for compliance checks (driver's license and REAL ID are not permitted). Decile Group handles all KYC/AML checks and regulatory filings.
Can I make changes to the Start Fund legal agreements? We can not accept edits or changes to the legal agreements because Start Fund is a product rather than a service. The standardization of the legal structure efficiently keeps the costs low for all parties.
Can I make changes to the Start Fund legal agreements? We can not accept edits or changes to the legal agreements because Start Fund is a product rather than a service. The standardization of the legal structure efficiently keeps the costs low for all parties.
Sidecars and SPVs
Can I create sidecars under the Start Fund structure? You can use Decile SPV or a provider of your choice to manage deal-by-deal breakout investments separately from the Start Fund structure.
Can my Start Fund invest in other Start Funds? No, Start Funds must deploy capital in startups, not other funds.
Marketing and Positioning
Should I mention the Start Fund in my Thesis or other fund materials? This is up to you. Decile Group recommends that you focus the Fund thesis on the fund and your track record. In larger materials, like the fund presentation, mentioning the Decile Group has proven to be a positive signal to limited partners.
Comparison and Competitive Advantage
How does the Start Fund compare to competitors like AngelList and Carta? Start Fund launches in under a day (vs. weeks/months), has zero upfront costs, requires only $150K to close, and provides comprehensive administrative support tailored for new managers. It offers investment committee guidance that competitors lack, supports smaller fund sizes ($150K-$500K vs. $5M+), and provides earlier cash flow through its condensed fee structure.