How do you raise a first fund?

The landscape of venture capital seems to be shifting.

Emerging fund managers and solo general partners (GPs) are increasingly becoming players in the ecosystem — fueled by the democratization of knowledge, accessible tools, and the appeal of novel strategies and niche networks. Yet, if googling “how to raise a fund” is anything to go on, raising a first fund remains one of the most challenging things to do in the venture capital industry. I thought I’d pull together some resources I could find. Comments & insights welcome!

Emerging fund managers

Emerging fund managers and solo GPs have captured a lot of media attention for their agility, specialized knowledge, and unique value props — especially in the last few years in Europe. These fund managers often bring new perspectives, having transitioned from roles as operators, entrepreneurs, or content creators. The trend has been boosted by platforms like AngelList and Carta, which offer infrastructure to manage cap tables, investments, and fund administration. But it’s not an easy thing to do…

The hard thing about hard things

• How do you show a track record without a track record? First-time managers often lack an institutional investment history, making it harder to convince LPs of their potential.

• It’s super expensive! Setting up a fund involves substantial legal, administrative, and operational costs.

• Where’s the money at? Building relationships with LPs is a time-intensive process, often requiring warm introductions and trust-building over months or years.

• How many hoops? Complying with legal and regulatory requirements adds an additional layer of difficulty.

• The market sucks. In uncertain economic climates — ahem, like now — LPs tend to gravitate toward established funds, intensifying competition for capital. There’s been historically low returns so LPs don’t have the dry powder of the heydey for emerging solo GPs.

What seems to make sense

• Find ways to build a track record — this could be angel investing to develop a portfolio that demonstrates your investment acumen.

• Use Special Purpose Vehicles (SPVs) to showcase your ability to identify high-potential opportunities and manage investments.

• Activate a network and partner up. Team up with individuals whose skills complement your own, such as pairing operational expertise with financial acumen. Form alliances with accelerators, tech hubs, or community organizations to enhance your fund’s visibility.

• Up-tool. Platforms like AngelList Rolling Funds enable continuous fundraising and flexible structures, lowering barriers to entry. Using fund administration services like Odin, AngelList, Vauban and Carta to streamline operations.

• Connect to LPs. Start with your network and seek warm introductions to LPs interested in your target sector. Tailor your pitch to align with LP interests, highlighting the return potential and strategic differentiation of your fund.

• Seek mentors. There’s new accelerator programs designed for emerging fund managers, such as the Emerging VC Manager Programme by Mountside Ventures or Thema in the UK. Get mentorship from someone who’s done it before.

Where can you go for help?

• Mountside Ventures Emerging VC Manager Programme — A 12-week program offering LP matchmaking, mentoring, and workshops, with a focus on reducing barriers for underrepresented managers​(fund manager).

• Thema (UK): Provides regulatory setup and cornerstone capital for new funds, focusing on those raising up to £40 million.

• Allocator One (Austria): Offers anchor investments of €1–3 million and operational support for first-time managers.

• VC Lab (Global): A virtual program providing educational resources and community support for new fund managers.

• Kauffman Fellows: A professional development fellowship emphasizing individual growth, albeit at a high cost.

I get excited about the prospect of more solo GPs to find outlier founders and anomalies in their network. If I’ve missed off any resources or programs to support emergent fund managers, comment and let me know and I’ll add them in!