Ask AI
Log In Sign Up
Go to Fund Economics
Previous Question Next Question
1
Fund Economics

What is a good fund I size for a fund of funds? Does the same 5-10M guidance apply as a standard fund?

Asked by: Mohammed Kamal
1
0
Oct 24, 2024
What is a good fund I size for a fund of funds?  Does the same $5-10M guidance apply as a standard fund?
I
1 answer
0
Mike Suprovici
Accepted Answer
Oct 24, 2024
Fund targets should be set based on the GPs ability raise capital, rather then by other external targets. The minimum fund size for a Delaware fund is $2.5m to justify the operational costs. In other domiciles, it's considerably higher due to the operational cost.
A fund of funds may also have higher operational costs than a typical venture capital fund, due to increased complexity with accounting, reporting, taxes, etc. 
- 
Haw Kuo
Oct 24, 2024 4:43pm
 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 18

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 18
Related Questions
1. Is the maximum number of investors allowed 99 or did it get raised to 250? 0 May 03, 2023 What is the '25 deals Golden Rule' and does it apply to pre-seed stage funds? 0 May 03, 2023 Do Typical Investment Periods Exist for Funds, and Can a 5MM Fund Have a 15-Year Lifetime? 0 May 03, 2023 What are your thoughts on increasing the minimum commitment to $200k? 0 May 03, 2023 What is the average ticket size for an early-stage generalist fund's LPs in the MENA region? 1 Mar 07, 2025

Decile Group Inc. uses cookies for our website to function properly; some are optional and help deliver a personalized and enhanced experience. By clicking "Allow all", you consent to store cookies on your device in accordance with our cookie policy. You can reject all non-essential processing by choosing to accept only necessary cookies. To learn more check Cookie Policy