Closing a venture capital fund is one of the hardest things to do. Completing a Next Close is normally easier than the first close, but most venture capitalists are busy setting up and running their fund to dedicate the necessary time to complete a Next Close.
VC Lab has developed eight sprints that can be completed over two months to complete a large Next Close, possibly for the whole fund. Traditionally, a first close is for 10% to 20% of the fund size. A second close will bring in another 30% to 40%, and a third close will bring in the final amount.
The Decile Partners fund admin service supports both rolling closes and batch closes, and we recommend batch closes. A batch close for a large amount of the fund size allows the manager to build momentum towards a closing date and focus attention on closing. Batch closes also reduce the administrative overhead.
The new program, called Decile Close, is not Cohort based. It is designed to start whenever you are ready, and you can take as long as you want for each Sprint and each activity. We recommend that you complete one Sprint each week to finish the closing in two months.
A large closing requires momentum, and building momentum requires focus and time. Make the time. You can get this done.
The Curriculum contains 8 Sprints of self paced work. Each Sprint is intended to be 1 week of work, but may take longer, if needed. The first 6 Sprints are roughly 20 hours of work, with additional hours needed for the last 2 Sprints that cover the closing.
With the inaugural program release on September 27th, 2022, each Sprint will be released weekly on Wednesdays.
Sprint 1: Prepare to Close (Password Protected)
Get all of the infrastructure up-to-date to complete a closing in approximately two months.
Sprint 2: Define Archetype LPs (Password Protected)
Identify target types of Limited Partners to focus on pitching
Sprint 3: Start Pitching Test LPs (Coming October 16th)
Test pitching the different LP Archetypes to identify the ones with traction
Sprint 4: Finalize Archetype Targets (Coming October 23rd)
Finalize your LP Archetype targets based on success and grow you target list
Sprint 5: Ramp Pitching Target LPs
Set up pitches with dozens of Limited Partners and build momentum towards a close
Sprint 6: Secure PACTS & Referrals
Continue pitching and following up with Limited Partners to secure signed PACTs and referrals
Sprint 7: Start the Closing
Accelerate momentum and start the closing process with all engaged Limited Partners
Sprint 8: Complete the Closing
Secure signed LPAs and initiate a capital call, setting everything up for the Next Close