What's the process for launching a subsequent fund when 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 Fund II with a classic general partner (GP) and management company (ManCo). The first step is to notify Decile Group through a private message in the community or the supplied email address for private matters. Decile Group will ensure that there are no conflicts of interest or other compliance matters, and then provide a list of next steps to launch a subsequent fund, ideally with Decile Group.
What's the process if the Investment Lead wants to take over the GP function entirely?
When the Investment Lead wants to become the official GP of the Start Fund, the Investment Lead needs to have set up a general partner (GP) and management company (ManCo), which Decile Group can assist with. Once these are set-up, the Investment Lead contacts Decile Group through a private message in the community or the supplied email address for private matters, and Decile Group will create a transfer agreement for the limited partner (LP) to be moved at the mutually agreed date. The Start Fund will continue to be managed through Decile Hub.
What's the process for bringing on additional investment team members to a Start Fund?
If the Investment Lead wants to bring on additional team members, then the Investment Lead needs to be an entity, and the team members are members of this entity. The Investment Lead entity should be set-up as an LLC, and, if the entity is set up correctly, then it may be able to become the management company (ManCo) of the final fund structure. Decile Group is able to assist with setting up the Investment Lead entity for a flat fee.
Can the Start Fund continue raising capital after onboarding?
The Start Fund has a three year window after the First Close to raise capital from limited partners and to invest in portfolio companies. A normal process is to first onboard and launch the Start Fund. Then, the Investment Lead secures signed LPAs and wires from limited partners until they have $500K committed, at which point the Start Fund completes a First Close. Next, the Investment Lead makes investments and continues to raise capital from limited partners, deploying capital as it becomes available. Finally, the active investment period and fundraising period close after three years, and the Investment Lead harvests the returns.