- Short Description:
- In order to get started as a GP, one strategy is to be an angel investor writing smaller checks from personal money and/or syndicating deals to other angel investors via a platform like AngelList. This “fund zero” is not really a fund rather it is an attempt to develop a track record.
- Benefits:
- If one has money to invest, it is not required to get anyone else’s permission or agreement to start.
- One has the ability to spend time as an investor, understand it better from the inside and decide if it is the right direction personally.
- Trade-offs:
- Many institutional LPs will want to focus on a track record of managing money on behalf of other investors and may dismiss an angel portfolio as not entirely relevant.
- Some consider small check investing to be different enough from leading rounds and full investment lifecycle management, that it will be considered a different skill.
- Examples:
- Haystack
- Ulu Ventures
- Deciens Capital
Getting Started: VC Fund Zero
