All Questions

What is the role of the Investment Lead?The Investment Lead assumes most of the roles of a traditional emerging manager, including: • Sourcing and closing limited partners • Identifying and negotiating investments with portfolio compani...

What is the role of the Investment Lead?The Investment Lead assumes most of the roles of a traditional emerging manager, including: • Sourcing and closing limited partners • Identifying and negotiating investments with portfolio companies • Tracking progress and completing valuations of portfolio companies • Approving quarterly and annual reports and financial statements • Managing communication and reporting with limited partners • Overseeing distributions of cash and stock to limited partners • Reviewing annual tax and regulatory filings The main difference between an Investment Lead and an emerging manager in a traditional fund is that there is an investment committee (IC) that makes the final investment decision. Many emerging managers have an investment committee. What is the typical process for making investment decisions with a Start Fund?The Investment Lead prepares information to submit to the investment committee in Decile Hub, including a Deal Memo and supporting documentation. Then, the Investment Lead clicks the “Submit for Review” button in Hub, and the IC will review the investment within a couple of business days and either approve the investment or request clarifications.  What happens if the investment committee of a Start Fund rejects an investment?It is expected that the investment committee of the Start Fund will approve most investments. There are circumstances where an investment may be reflected due to extreme terms, unusual legal, compliance risks, or conflicts of interest. In these cases, the Investment Lead may either work to remedy the issue or decide to pass on the opportunity. How does limited partner reporting work with a Start Fund?The Investment Lead is responsible for producing reports for limited partners, which may include newsletters, quarterly reports, and annual reports. Decile Group produces financial information as part of these reports using information and data on the portfolio performance from the Investment Lead. Decile Pro, the LP portal for Decile Hub, automatically displays the fund financial data to the limited partner. The Investment Lead provides portfolio insights, market insights, and qualitative analysis in the reporting.  How does portfolio company reporting work with a Start Fund?The Investment Lead is responsible for monitoring the financial performance of portfolio companies and collecting information to provide valuation updates on the portfolio companies on a quarterly and annual basis. Whenever a portfolio company has a subsequent investment, the Investment Lead collects the valuation and deal documentation to load into Decile Hub for reporting. The Investment Lead may mark down portfolio companies. Decile Group will assist with collecting portfolio valuation on a case-by-case basis. What decisions require Decile Group’s approval as the GP in the Start Fund?The Decile Group GP acts as the investment committee (IC). The investment committee reviews, provides constructive feedback, and formally approves deals negotiated by the Investment Lead.  Does Decile Group have voting rights in companies the Start Fund invests in?The Decile Group typically does not exercise direct voting rights in portfolio companies. The Investment Lead maintains the relationship with portfolio companies. In cases where voting rights need to be exercised, Decile Group will rely on guidance from the Investment Lead on how to vote. What is the process for making distributions with a Start Fund?When a portfolio company exits, the Investment Manager coordinates with company management to receive the proceeds. When the proceeds are received, Decile Group coordinates with the Investment Lead to distribute them according to the waterfall outlined in the Limited Partner Agreement (LPA), with returns flowing to LPs first until they receive their capital back, followed by carried interest distributions.

What are all of the fees in a Start Fund?The Start Fund works on a modified 2/20 model. The Investment Lead receives half of the 2 in the 2/20 model for a Management Fee, which amounts to 10% of the total invested amount by a limited par...

What are all of the fees in a Start Fund?The Start Fund works on a modified 2/20 model. The Investment Lead receives half of the 2 in the 2/20 model for a Management Fee, which amounts to 10% of the total invested amount by a limited partner. The other half of the 2 in the 2/20 model is allocated as an Operations Fee, covering all setup and annual operating costs. The Investment Lead receives 18% of the carried interest, while 2% of the carried interest (which equals 10% of the total carried interest) is used to cover fund expenses, such as legal fees, extraneous administration costs, compliance risks, and other operational necessities. For reference the 2 in a 2/20 model is 2% collected per year for 10 years, so it is 20% of the funds raised. What is the management fee structure?The 1% management fee is paid out over 2 years instead of paying out 1% per year for 10 years. The Investment Lead receives 5% in year one and 5% in year two. The management fee must be split over two years due to regulatory requirements. The 5% per year rate is significantly higher than a traditional fund, which may have up to a 3.5% annual management fee in the first years with an aggressive waterfall. The Decile Group supports making the management fee optional if the Investment Lead chooses to invest that money from the beginning. What are the fees and costs for a $1M Start Fund?Here are the total fees and costs with a hypothetical fund of $1 MM: • $0 to set up the fund • $0 in annual fund expenses, compliance costs, and tax costs • $100K in Management Fees paid $50K per year for 2 years • $100K in Operational Fees paid over 10 years • $800K to invest in venture capital deals The fee structure is a percentage that remains the same regardless of fund size. The percentage allocations remain consistent if you start with $500K and grow to $3.5 MM. What is the capital call structure of the Start Fund?Each limited partner admitted to the Start Fund will have one capital call of 100%. The Investment Lead can create a virtual capital call structure by having limited partners close on additional capital over the three-year fundraising and investment period. For example, a limited partner can commit $100K in the first year, $100K in the second year, and $100K in the third year, for a total of $300K. When are the fees collected with a Start Fund?When a limited partner wires into a Start Fund, the Management Fee and the Operations Fee are automatically allocated at the time of the wire, leaving the remaining balance ready for investment. For example, if a limited partner signs the LPA and wires $100K after the Start Fund First Close, then $10K would be removed for the Management Fee and $10K for the Operations Fee, with $80K available to invest. How does the first closing of a Start Fund work?The Start Fund must reach a minimum of $500K USD in limited partner wires to complete the official First Close. In its sole discretion, Decile Group may allow Start Funds to close with as little as $250K USD in limited partner wires. Fundraising momentum is the main consideration in allowing the Investment Lead to do a First Close with less capital. If the target minimum is not achieved within 6 months, then capital will be returned to limited partners. What is the process for calling capital with a Start Fund?Once LPs sign the limited partner agreement (LPA), Decile Hub automatically manages a single 100% capital call. Once the capital call is wired from the limited partner, they are immediately admitted into the fund after the First Close. Fees and expenses are immediately deducted from this single capital call upon completion. Will having communicated capital calls to LPs be an issue?Investment Leads that told limited partners about capital calls will need to explain that the Start Fund will have one capital call, which should be easy to explain for two reasons. Limited partners investing $100K or less often prefer one capital call. For larger investors, you can use the virtual capital call structure. Since the virtual capital call structure is voluntary, this is actually a benefit to the limited partner. Will Decile Group or affiliated entities invest directly into the fund?Not currently. The Decile Group offers programs to help GPs fundraise that are by invitation only. Decile Capital has a fund of funds that may also make investments into Start Funds in the future, but the mechanisms for investment have not been finalized, yet.  

What is the Start Fund?Start Fund is a new fund structure by Decile Group that allows Investment Leads to launch a fully functional, institutional-grade VC fund in less than one business day with no upfront expenses. The Start Fund struc...

What is the Start Fund?Start Fund is a new fund structure by Decile Group that allows Investment Leads to launch a fully functional, institutional-grade VC fund in less than one business day with no upfront expenses. The Start Fund structure has been optimized to reduce cost and complexity by over 5 times. As a result of these cost savings, the fund size can be as small as $500K, and limited partner investments can be as small as $10K.  The Start Fund is exclusively available for members of the VC Lab network and designed for investors who want to move quickly and break into venture capital. Learn more: https://DecileGroup.com/start-fund How quickly can I launch a Start Fund?Launching a Start Fund and getting a bank account takes less than one business day. Once set up, you can then start sending out Limited Partner Agreements (LPAs) and even make investments. There are no fees and expenses to get started. The process is: 1. Apply at https://DecileGroup.com/start-fund (2 minutes) 2. Complete and pass the mandatory KYC/ AML process (10 minutes) 3. Sign the Investment Lead Agreement and Cornerstone Start LPA (5 minutes) 4. Get the bank account and Decile Hub set up (less than 1 business day) 5. Start sending out LPAs and collecting wires to make investments What is the minimum fund size and closing amount of a Start Fund?The minimum size of a Start Fund is recommended to be $500K USD, allowing the Investment Lead to complete multiple investments. Decile Group recommends that Investment Leads target $1 MM USD or more for Start Funds to secure maximum portfolio diversification. A Start Fund can be closed with as little as $250K USD wired in from limited partners. How many partners or general partners can be involved in a Start Fund?Partners or general partners in a Start Fund are called Investment Leads. The Start Fund may have one to four Investment Leads. When there is more than one Investment Lead, the split of the Start Fund economics is set in the Investment Lead Agreement. The Investment Lead can also be an entity, which supports maximum flexibility to involve multiple parties. It is recommended that all parties working together on a Start Fund have extensive experience working together, as well as vesting and other legal protections against partner disputes. What is the structure of the Start Fund?The Start Fund has a three-entity structure with a management company (ManCo), general partner (GP), and limited partner (LP). Decile Group and its subsidiaries or delegates fill the ManCo and GP, reducing the overall structural complexity. The Investment Lead oversees the LP, which can be moved at any time to their own ManCo and GP structure. The LP is portable, and the Investment Lead has the option to switch the ManCo and GP. What are the key benefits of Start Fund?The Start Fund is considerably faster, cheaper, and better than any fund formation alternative on the market today. Here are a few of the many benefits: • Start a venture capital fund for $0 • Launch the fund in less than one business day • Build a real venture capital track record • Start closing LPs and investing immediately • Low fixed fee structure with no hidden expenses • Get the leading software to run the fund for free • Access the top-rated fund admin of Decile Partners • Have the compliance and tax managed and handled • Leverage an experienced investment committee to help • Raise capital from smaller LPs and close on a smaller fund size • Count the Start Fund as part of your firm AUM What are the key differences between a Start Fund and a normal fund?In order to achieve cost and operational efficiencies, the Start Fund differs from a traditional venture capital fund in a few different ways: • The manager in a Sart Fund is called an Investment Lead with different control • The Start Fund has one entity, the LP, versus three entities of a traditional structure • There is only one capital call in a Start Fund, versus multiple calls in a traditional structure • The Start Fund has a mandatory investment committee handled by Decile Group • The Start Fund does not support venture partners directly Will a Start Fund count towards my VC track record?Yes. Start Fund is a real venture capital fund with full professional tools and operations. The fund can be moved under a different general partner (GP) and management company (ManCo) at any time, allowing you to bring your AUM and successes into your next fund or firm. Should I mention the Start Fund in my Thesis or other fund materials?This is up to you. Decile Group recommends that you focus the Fund thesis on the fund and your track record. In larger materials, like the fund presentation, mentioning the Decile Group has proven to be a positive signal to limited partners. When did the Start Fund launch?The Start Fund launched on February 24th, 2025, with six initial funds created. Decile Group then released a limited number of Start Funds each subsequent week, with demand for hundreds of funds.   

Yes. However there are several issues with having Limited partners be Venture Partners. First, Limited Partners will loose various protections because the Venture Partners make decisions for the fund. Second, this creates a challenge for...

Yes. However there are several issues with having Limited partners be Venture Partners. First, Limited Partners will loose various protections because the Venture Partners make decisions for the fund. Second, this creates a challenge for the GP in situations where the VP doesn't deliver on expectations because it's difficult to fire a Venture Partner because they are also a Limited Partner. Review the Venture Share agreement for details on VP compensation: https://govclab.com/venture-share/

Not yet, but we'll add this to the roadmap. Great idea. Thanks!

Not yet, but we'll add this to the roadmap. Great idea. Thanks!

The best approach is to build rapport before discussing investment. Learn about their interests and be helpful where possible. When ready, ask if they invest in new managers and how many they have invested in recently. Tailor your pitch ...

The best approach is to build rapport before discussing investment. Learn about their interests and be helpful where possible. When ready, ask if they invest in new managers and how many they have invested in recently. Tailor your pitch to highlight your fund's unique value proposition, and ensure it aligns with their interests and values.

No. This is because there are a lot of factors that impact returns besides just the valuation of the company such as the composition of the cap-table and the terms under which these rounds were completed.

No. This is because there are a lot of factors that impact returns besides just the valuation of the company such as the composition of the cap-table and the terms under which these rounds were completed.

That's an impossible questions to answer because the check size is determined by the fund fundraising ability and their strategy. If a fund is doing pre-seed, perhaps they do more smaller investments. If they are seed, they need bigger c...

That's an impossible questions to answer because the check size is determined by the fund fundraising ability and their strategy. If a fund is doing pre-seed, perhaps they do more smaller investments. If they are seed, they need bigger checks and less investments. 

We purposely do not allow Base to search outside of our database because much of the information that you will find about VC online is wrong. 

We purposely do not allow Base to search outside of our database because much of the information that you will find about VC online is wrong. 

Pledge Agreement for Capital Transaction 

Pledge Agreement for Capital Transaction 

Hi Alejandro, I'm not sure if I follow the question 100%, but I'll try to answer. We've purpose built Decile Hub to be the best platform in the world for new and emerging managers to raise their funds. Typically, the fund managers and a...

Hi Alejandro, I'm not sure if I follow the question 100%, but I'll try to answer. We've purpose built Decile Hub to be the best platform in the world for new and emerging managers to raise their funds. Typically, the fund managers and any venture partners or teammates will also be invited to Hub, you can set granular permissions for those teammates on the team page. As far as prospects and potential limited partners, their interaction with hub will typically be as a visitor, from viewing files, signing PACTs, etc. For those accounts who join Decile Partners, the LPs will get access to our LP portal 'Decile Pro', which acts as a portal for tax documents, fund performance, wiring instructions, and more.

What to do first 2. Properly conduct due diligence of the deal and develop your conviction.  4. Write a memo and submit the deal for a Deal Review, so our Deals team can take a look.  6. Sign the investment document (SAFE, Convertible n...

What to do first 2. Properly conduct due diligence of the deal and develop your conviction.  4. Write a memo and submit the deal for a Deal Review, so our Deals team can take a look.  6. Sign the investment document (SAFE, Convertible note, etc) and secure a double-signed copy.  8. Log the investment in Hub (see below).  10. Wire your investment. How to log an investment in Hub This video walks you through the steps below: https://www.youtube.com/watch?v=ThukkEeIpd0 2. Sign the investment documents. Obtain a double-signed copy. 4. Make sure the company exists in your DEALFLOW pipeline. 6. Move the company to IN PORTFOLIO (you may have a stage "Invested" or another title). 8. Open the company details. 10. Under FUNDING ROUNDS, add a funding round (or ensure that the current funding round is listed). 12. In the funding round you will invest in, select BROWSE FILE and attach your double-signed investment document. 14. Click SAVE FUNDING ROUND. 16. Make the wire. 18. You're done. Accounting will reconcile your wire with the company and documents you've added to Hub.

When you are ready to take a decision on an investment, it's a good time to create a deal memo.  Using Decile Hub to make a deal memo is a fast and easy process. Check out the video below to see how to do it. https://www.youtub...

When you are ready to take a decision on an investment, it's a good time to create a deal memo.  Using Decile Hub to make a deal memo is a fast and easy process. Check out the video below to see how to do it. https://www.youtube.com/watch?v=umwByPuowXY Note that Deal Review is only available to Decile Partners clients. 

Before you add Deals, you may want to Organize your Deals pipeline - this streamlines your deal input. Let's look at 3 methods for getting Deals into Hub: 2. Importing Deals using the Decile Chrome plugin 4. Manually create a Deal 6. Us...

Before you add Deals, you may want to Organize your Deals pipeline - this streamlines your deal input. Let's look at 3 methods for getting Deals into Hub: 2. Importing Deals using the Decile Chrome plugin 4. Manually create a Deal 6. Use Zapier to automate deal input from another source Method 1: Import Deals with the Decile Chrome plugin Use the Decile Chrome plugin to automatically create a Deal based on information you've found online (for instance, on LinkedIn or on a company's page). Here's a 75-second walkthrough on how to import Deals with the Decile Chrome plugin. https://www.youtube.com/watch?v=H6zolk6Q8Gk Method 2: Add one Deal at a time. You can always simply click "Add Prospect" and put a deal into Hub. This video shows you how. Here's a 90-second walkthrough on how to add Deals into Decile Hub manually.  https://www.youtube.com/watch?v=I0B1evV6eQE Method 3: Use Zapier to automate deal input from another source Decile Hub works with Zapier. You can connect any data source like AirTable, HubSpot, or Google Sheets by defining a "trigger" action in those tools that will create your Deal in Hub. Check back soon for video guides on how to use Zapier to add Deals into Hub.

Before you start adding Deals to Hub, it's worth taking a moment to make sure your Deals pipeline is set up in a way that works for you and your workflow. Decile Hub has a LOT of features and options — because each manager wants to look...

Before you start adding Deals to Hub, it's worth taking a moment to make sure your Deals pipeline is set up in a way that works for you and your workflow. Decile Hub has a LOT of features and options — because each manager wants to look at different information in their dealflow funnel. But this means sometimes there's too much on your screen. The 90-second video below shows you how to set up your Deals pipeline in a way that works for you. https://www.youtube.com/watch?v=3XU8fdT5WDE