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 $500K, and limited partner investments can be as small as $10K.
The Start Fund is exclusively available for members of the VC Lab network and designed for investors who want to move quickly and break into venture capital.
Learn more: https://DecileGroup.com/start-fund
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 $500K 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 $250K USD wired in from limited partners.
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 has one Investment Lead, but that Investment Lead can be an entity. So, it is possible to have an Investment Lead as an entity with multiple partners. Decile Group recommends no more than three partners in the entity for a Start Fund, and it is recommended that all partners have extensive experience working together, as well as vesting and other legal protections against partner disputes.
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 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
What are the key differences between a Start Fund and a normal fund?
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 Sart 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
What is the active investment period of a Start Fund?
The active investment period and the fundraising period of a Start Fund is three years from the date of the First Close. The Investment Lead can continue to make investments and raise new capital from limited partners during this period.
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 general partner (GP) and management company (ManCo) at any time, allowing you to bring your AUM and successes into your next fund or firm.
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.
When did the Start Fund launch?
The Start Fund launched on February 24th, 2025, with six initial funds created. Decile Group then released a limited number of Start Funds each subsequent week, with demand for hundreds of funds.