TSN #28 - VC Fund Manager Playbooks

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Hey! 👋

This week's idea comes from observing the explosion of micro VCs and emerging fund managers. While everyone's talking about raising funds, few are focusing on the nitty-gritty of actually running them well.

Enjoy!

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🎬 The Pitch

Imagine building the "Standard Operating Procedures" for emerging VC funds. As more successful operators and angels raise their own funds, they're discovering that running a fund is vastly different from making individual investments. That's where your comprehensive playbook service comes in.

Here's the concept: Create detailed, actionable playbooks covering everything from LP communications to deal flow management, portfolio support, and fund operations. Package this expertise into different formats - from self-serve documents to custom consulting. With the right positioning, you could charge €5-50k per fund, depending on the level of service and customization.

The best part? Once you create the core playbooks, you can serve multiple funds while building a reputation as the go-to expert for emerging managers. Plus, you're positioning yourself to potentially earn carry or advisory shares in successful funds.

📊 Market Insights

The emerging VC market is booming:

• 1,200+ new micro VC funds launched in 2023

• Average first-time fund size: €15-50M

• 67% of new managers have no prior fund experience

• 82% operate with teams of 3 or fewer people Source: Emerging VC Report 2024

💡 The Concept

Core Playbook Categories:

• Fund Operations & Administration

• Deal Flow Management

• Due Diligence Process

• Portfolio Management

• LP Communications

• Fund Marketing & Brand Building

Service Levels:

1. Basic Playbook Access:

   • Digital playbook library

   • Templates and checklists

   • Monthly updates

   • Community access

2. Premium Package:

   • Customized playbooks

   • Quarterly review calls

   • Priority support

   • Best practices workshops

3. Elite Consulting:

   • Full fund setup support

   • Custom process creation

   • Team training

   • Ongoing advisory

💰 Revenue Streams

• Primary: Playbook subscriptions (€5-15k/year)

• Secondary: Custom consulting (€20-50k/engagement)

• Additional: Workshops (€2-5k per session)

• Optional: Fund carry or advisory shares

🛠️ Bootstrappability Score: 9/10

Start with knowledge documentation and basic tools. Main investment is in content creation.

💻 Non-Tech Factor: 6/10

While you'll need a delivery platform, this is primarily about expertise and content. Focus on quality of information.

🚀 Getting Started

1. Create Core Content:

   • Map all fund processes

   • Document best practices

   • Create templates

   • Build checklists

   • Develop SOP library

2. Package Offerings:

   • Structure clear tiers

   • Create delivery system

   • Build support process

   • Develop onboarding

3. Initial Clients:

   • Target first-time fund managers

   • Focus on €15-50M funds

   • Offer beta pricing

   • Start with emerging markets

4. Growth Strategy:

   • Build case studies

   • Create content marketing

   • Develop partnerships

   • Build manager community

💪 Pros & 😓 Cons

• Pro: High-value clients with budget

• Pro: Potential for equity upside

• Con: Need deep fund operations experience

• Con: Long sales cycles with funds

🔍 Steal Somebody’s Homework & Dive Deeper

Want to explore this idea further? Check out:

• Confluence VC - Fund management resources

• VC Lab - Has some resources especially in the area of documentation

• AngelList Stack - Fund operations platform

Running a fund? Let me know your struggles!

- Slavo