What significantly correlates with early fundraising success?
Early traction is critical for emerging fund managers. In the first few weeks of fundraising, momentum builds credibility, builds confidence, and sets the pace for future LP conversations. But what actually signals success in those first four weeks?
While every fund is different, patterns do emerge. From fund size and LP activity to LinkedIn networks and prior experience, certain indicators show consistent correlations with early soft commitments. Most notably, early traction tends to reflect how well a fund’s strategy aligns with a GP’s current network and resources.This article analyzes data from 600+ emerging funds that successfully completed Decile Group’s VC Lab accelerator, exploring which GP and fund characteristics are most associated with strong fundraising starts and what sets early movers apart.…
Category: Venture Capital Research
Are younger managers taking over and rewriting old VC rules?
The Next Wave Is Younger. The share of GPs under 40 has grown 1.6x since 2022 — now nearly on par with the historically dominant 40–50 group. Younger leadership is gaining ground fast across both individual GPs and fund teams.
Younger GPs Drive Inclusion. Funds with average GP age under 40 are 1.2x more likely to include a woman than those aged 40–50, and 1.8x more likely than those 50+. Gender diversity is strongest in younger, mixed-gender teams.
Younger funds close bigger and faster. Younger GPs set smaller targets and accept smaller checks — but convert faster and close more capital. Their funds close in 10 weeks on average, and reach $3.7MM in signed LPAs — 1.7x more than funds led by GPs 50+.…
Are long résumés still necessary for fundraising success?
Experience has long been a gatekeeper in venture capital. Historically, launching a fund was a privilege reserved for former partners, career VCs, or those with deep ties to the industry. But the landscape is changing. More emerging managers are entering venture without prior VC experience — and they’re performing better than many might expect.
While funds led by experienced GPs still make up the majority, the share of “inexperienced” teams — those without prior work experience in VC — has steadily grown. These managers are launching leaner, faster funds and are finding smart ways to close the gap in terms of performance outcomes.This article draws on data from 600+ emerging funds that successfully completed Decile Group’s VC Lab accelerator program between 2022 and 2025, exploring how prior VC experience relates to who launches emerging funds, how those funds are structured and positioned, and the patterns observed in their early fundraising outcomes.…
Who are the women pushing venture capital towards 50-50?
Winning Together. The quickest pathway to gender equity in venture capital is mixed gender funds. Mixed gender funds have doubled as a percentage of emerging funds in two years and were more successful at fundraising as well. They were 1.2x more likely to reach a first close than all-male funds, and 1.3x more likely than all-female funds.
Focus and Specialization. Female-only funds are more likely to specialize in one sector; top focus areas include healthcare, diversity, and impact investing.
Ready Enough. Emerging female VCs are refusing to compromise on theses or “pay their dues”: Female-only funds tend to have younger general partners and are more likely to start a fund on their own compared to men.…
How are new managers launching, closing, and deploying capital in just 36 days?
The early-stage venture capital ecosystem is undergoing a major shift. As the barriers to launching a VC fund remain high, many talented emerging managers are sidelined by long setup times, high legal costs, and the complex requirements of traditional fund structures. Start Fund by Decile Group offers a streamlined alternative: a professionally managed, multi-deal venture fund model built for speed, clarity, and execution.
Start Fund was created to help emerging managers launch quickly, build a track record, and raise capital without being buried in legal paperwork or back-office overhead. It gives investors a path to launch a fund, receive and deploy capital in weeks, not months. With all fund infrastructure and compliance fully handled by Decile Group, Investment Leads can focus on what they do best: raising from LPs and investing in startups.…
How are emerging managers using AI to improve performance?
Artificial intelligence is transforming industries at every level— and venture capital is no exception. As fund managers juggle complex operations, investor relationships, and deal flow, AI offers new tools to enhance decision-making, streamline workflows, and increase operational efficiency. For emerging managers in particular, AI can act as a force multiplier, helping lean teams execute with the precision and scale of much larger firms.
Decile Group’s Decile Hub platform brings these possibilities to life. Built specifically for VC fund operations, the platform integrates essential functions like CRM, document management, deal tracking, and portfolio reporting— all in one place. What sets Decile Hub apart is its built-in AI, which not only automates tasks but also provides real-time insights and actionable guidance to help managers make smarter decisions.…
Do venture studio funds perform better than traditional and accelerator models?
Emerging venture capital is evolving, and one of the most evident shifts in recent years has been the rapid surge of venture studio funds. These funds combine capital with company-building infrastructure and help to launch startups from the ground up. The model offers a compelling alternative to traditional VC by aligning capital deployment with hands-on operational support.
While venture studio funds have historically made up a small portion of the emerging VC ecosystem, recent trends suggest a turning point. Their adoption has more than doubled in the past year— rising from 6% of all new funds in 2024 to 13% in 2025. With leaner target sizes and stronger early fundraising performance, these funds are carving out a clear strategic niche.…
Are smaller fund sizes the future of emerging VC?
The rise of emerging fund managers has reshaped the venture capital landscape, introducing greater diversity, agility, and strategic specialization. A key element in this transformation is fund size. Smaller target sizes, once seen as limitations, are now strategic advantages—especially for first-time managers navigating shortened fundraising cycles and intense LP competition.Recent data reveals a compelling case for smaller funds. These vehicles tend to outperform larger ones across multiple dimensions, from quicker first closes to more efficient capital conversion and stronger LP follow-through. They are also more likely to be solo-led, focused on a single sector, and better suited to specialized, early-stage strategies—characteristics that often align well with emerging manager strengths.This article explores how fund size tends to shape fundraising outcomes, leadership structures, sector and stage strategies, and gender dynamics.…
Are smaller check sizes reshaping the VC landscape?
The venture capital industry is undergoing a significant democratization, challenging the traditional notion that VC investment is exclusively reserved for ultra-high-net-worth individuals and institutional investors. This transformation is particularly evident in the emerging manager space, where a new generation of fund managers is attracting diverse Limited Partners (LPs) with varying investment capacities.
Recent trends reveal a shifting paradigm in venture capital accessibility, marked by lower minimum investment thresholds and more flexible Limited Partnership Agreements (LPAs). These LPAs, which formalize the investment terms between Limited Partners and fund managers, serve as crucial indicators of how the industry is evolving to accommodate a broader range of investors. The trend suggests a marked departure from the conventional wisdom that venture capital investment requires multi-million dollar commitments.…
Which types of LPs are writing the most checks?
A Limited Partner (LP) in venture capital is an investor who commits capital to venture funds while taking a passive role in fund operations. Recent data from Decile Group’s LP Institute reveals a fundamental transformation in how these investors approach venture capital. This evolution is particularly evident in the growing sophistication of high-net-worth individuals entering the venture space, the strategic repositioning of family offices, and the adaptive approaches of institutional investors.
Recent trends show LPs moving beyond conventional investment patterns, with increasing attention to sector specialization and strategic portfolio construction. This transformation is reshaping the venture capital landscape, as LPs of varying sizes and backgrounds adopt more nuanced approaches to fund selection and portfolio diversification.…
Where are emerging managers placing their biggest bets?
The venture capital landscape is undergoing a significant transformation as specialized funds emerge to tackle the unique challenges and opportunities within specific technology sectors. Between 2020 and 2025, four sectors have commanded particular attention: Artificial Intelligence (AI), DeepTech, FinTech, and Healthcare. Together, these sectors have represented nearly 40% of new and emerging VC funds over the past years, marking a decisive shift away from generalist investment approaches.
This evolution reveals distinct trends across each sector: AI funds have surged from 5.4% to 24.5% of new fund launches over the past four years; Healthcare leads in gender diversity, with 25.5% of teams led by women; FinTech boasts one of the highest first-close success rates at 48%; and DeepTech shows steady momentum, with market share projected to exceed 12% in 2025.…
Do venture studio or accelerator funds raise more effectively?
What Are the Key Differences?
Venture studios and accelerators represent two distinct models for supporting startups, differing in structure, level of involvement, and equity stakes. Venture studios create startups from scratch, generating ideas internally and providing capital, talent, and operational support in exchange for significant equity stakes (typically 30-80%). In contrast, accelerators focus on scaling existing startups through short, intensive programs, offering mentorship, networking, and initial funding for smaller stakes (generally 5-15%).
To strengthen their investment strategies, some venture studios and accelerators launch dedicated VC funds to extend financial support beyond their core programs. Venture studios may do so to maintain long-term involvement in the startups they build, while accelerators often seek to provide follow-on capital to high-potential startups emerging from their cohorts, ensuring they remain invested in their continued growth.…
Do pre-seed or seed funds win more LP support?
For emerging venture capital managers, an important early decision is whether to launch pre-seed or seed funds. Pre-seed funds offer early access to startups at their inception, capturing opportunities with higher risk and potential reward, while seed funds target companies that have begun to validate their ideas, offering a slightly more balanced risk profile and clearer growth path. But which strategy sets new managers up for long-term success?
Based on quantitative data from Decile Group’s VC Lab accelerator program for new and emerging managers, including 500+ funds that have successfully completed VC Lab between 2020 and 2024, this report breaks down how pre-seed and seed funds compare in terms of representation, sector focus and performance.…
Are solo GPs outperforming team-led funds?
For emerging venture capital managers, one of the biggest early decisions is whether to go solo or build a team. Solo GPs often move faster and retain full control, while team-led funds can leverage diverse networks and shared responsibilities. But which model sets new managers up for long-term success?
Based on quantitative data from Decile Group’s VC Lab accelerator program for new and emerging managers, including 500+ funds that have successfully completed VC Lab between 2020 and 2024, this report breaks down how solo and team-led funds compare in terms of representation and performance. By the end, you’ll have an answer to the question: Should you raise your first fund alone or with co-founders?
Representation
A Growing Shift Toward Teams Amongst Emerging Managers
Solo-led funds have been the preferred choice among emerging managers, with 60% opting to launch alone versus 40% with a team.…
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2024 Emerging Manager Report Reveals Industry Transformation
The venture capital industry is undergoing a seismic shift, and it’s not just about the money anymore. Our analysis of over 850 new fund managers in 2024 – representing approximately half of all VC firms launched worldwide – reveals a striking transformation in who gets to write the checks.
Gone are the days when venture capital was exclusively the domain of seasoned finance professionals from traditional backgrounds. Today’s emerging managers are younger (46% under 40), more diverse (27% women and non-binary), and increasingly likely to come from outside the industry (48.8% transitioning from other sectors). But perhaps most surprisingly, the data suggests that these new entrants aren’t just changing the face of venture capital – they’re rewriting its playbook entirely.…
Market Makers of Innovation
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NextGen VC Managers – 2023-Q1Download
Overview
Venture capital functions as research and development for humanity. When done right, venture capitalists fund and support innovative ideas from pioneering founders that change the world for the better.
Over the last five years, a couple thousand new venture capital firms have been launched worldwide. By analyzing the profile of the new managers launching these firms, we can glean a forecast of what the innovation of tomorrow will look like.
VC Lab Research collected information from 401 venture capital firms from around the world focused on early stage investing to present a detailed profile. The firms were launched from May 2020 until January 2023.…