Ask AI
Log In Sign Up
Go to Fundraising
Previous Question Next Question
0
Fundraising

Is it better to target a $5M fund and potentially oversubscribe to $10M, allowing room for failure?

Asked by:
Community Member
1
0
May 03, 2023
If I'm targeting $10M fund 1 but could reasonably carry out my investment thesis with a $5M fund, does it make more sense to state I'm raising a $5M fund and try to oversubscribe to ~$10M giving myself some room for failure?
1 answer
0
Mike Suprovici
Accepted Answer
May 03, 2023
Yes. You should set a lower target and over subscribe. Fund models scale up well, but don’t scale down.
Add a comment

Log In or Sign Up

Please Log In, or Sign Up to participate in the discussion.

Log In
or
Sign Up

Apply to VC Lab Cohort 17

Get full access to Decile Base and the Decile Hub venture platform for free by joining the VC Lab program.

Apply to VC Lab Cohort 17
Related Questions
1. Is the maximum number of investors allowed 99 or did it get raised to 250? 0 May 03, 2023 Are the audit and tax fees reasonable for a first-time $10M fund? 0 May 03, 2023 How to Manage a $5m Investment Offer from an LP Prospect Seeking to Become a GP in My $10m Venture Studio Fund? 0 May 03, 2023 How does VC fund raising work if we don't reach our target? 0 May 03, 2023 PACT Agreement 1 Nov 20, 2024