Launch a VC Fund Instantly

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 structure has been optimized to reduce cost and complexity by over 5 times, allowing fund sizes as small as $500K and LP investments as small as $10K.

Launching a Start Fund and getting a bank account takes less than one business day. Once set up, you can immediately start sending out Limited Partner Agreements and make investments with no fees or expenses to get started.

The minimum recommended size of a Start Fund is $500K USD, although Decile Group recommends targeting $1MM or more for maximum portfolio diversification. A Start Fund can be closed with as little as $250K USD wired in from limited partners.

The Start Fund works on a modified 2/20 model with a 10% Management Fee paid to the Investment Lead over two years and a 10% Operations Fee covering all setup and annual costs. The Investment Lead receives 18% of the carried interest, while 2% covers fund expenses like legal fees and compliance.

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.

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.

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.

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.

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.

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.

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.

A Start Fund cannot accept limited partners from Europe, although it can invest in European companies. Start Funds also cannot have Investment Leads living in Singapore, and all funds are domiciled in Delaware.

Start Fund launches in under a day (vs. weeks/months), has zero upfront costs, requires only $250K to close, and provides comprehensive administrative support tailored for new managers. It offers investment committee guidance that competitors lack, supports smaller fund sizes ($250K-$500K vs. $5M+), and provides earlier cash flow through its condensed fee structure.

The Start Fund is a real venture capital fund with full professional tools and operations. The fund can be moved under a different general partner and management company at any time, allowing you to bring your AUM and successes into your next fund or firm.

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.