How to Objectively Measure the “Fundability” of Your Fund


This post is by Charlie O’Donnell from Blog – This is going to be BIG


When I wrote this post about trying to measure the fundability of your startup, I kicked it off with, “You can’t” and proceeded to share all the ways that getting your company funded feels a bit like a craps shoot, while still trying find a method somewhere within the madness.

On the other hand, I feel things are a lot more predictable on the fund side—and that getting limited partners for your fund or syndicate is a lot more grounded in something that resembles logic. Normally, I can tell whether or not a VC will be able to raise capital for their fund at the particular size they’re trying for—and if not that size, what the market might bear at this stage.

Here’s my view of how “fundability” plays out for funds:

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The red bars indicate the downside of what happens when you don’t have that things and the green bars are the upside if you do have it. Spinning out of a successful fund of a similar size? Awesome—your track record, experience, and existing relationships will have you off to the races. Not the case? That’s fine, because that’s just not the case for most managers, so there’s no real harm in not having it.

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