New Managers need to develop a Thesis, form a team, complete initial fundraising, finish a first close, finalize fundraising, and deploy the capital. These activities are completed in a series of fund lifecycle phases, which are outlined below.
Inception Phase The inception phase is when the Thesis and team are developed.
Initial Fundraising Phase The initial fundraising phase is when the initial LPs are secured, normally 1st and 2nd degree connections
First Close Phase The first close phase is when there is enough commitments to start a first closing, which is normally at least 10% hard circled and 10% soft circled, totaling at least $2 MM
Final Fundraising Phase The close fundraising phase is when the managers are simultaneously closing the fund while also running hte fund
Deploying Phase The deploying phase is when a fund is fully closed, calling capital from limited partners to make investments into Thesis aligned startups