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 or removing team members to a Start Fund?
There are two ways that team members are handled with a Start Fund. If the Investment Lead is an entity, then the entity can add or remove team members according to the rules of the entity. If there is no entity, then every team member must become an Investment Lead by signing the Investment Lead Agreement before the first close of the Start Fund. The Investment Lead Agreement specifies the economic split between the different Investment Leads. If an Investment Lead is removed or leaves within 9 months of the first closing, then they may forfeit their fund economics, subject to negotiation. All team members need to undergo KYC / AML checks.
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.