#4 Fund Launch Checklist (2.0)

Launching a #VC fund (or fund of any type) can be overwhelming - use a checklist!

September 08, 2021

Welcome to the new members of @TheFundCFO crew that have joined in the last week. Thanks for your support and spreading the word! Every week, we’ll bring you actionable tools, real-world experiences, and insider insights for #VC fund managers, #LP investors, and general industry enthusiasts. #OpenLP

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Today’s Top 3:

  • Launching a fund can be overwhelming! We break it down, step-by-step, with our updated 23-Point Checklist below!

  • You need more than a marketing presentation & fundraising plan. Other key areas include legal & compliance, finance, operations, software / tools, operating & process manual(s)

  • Commit to the process! This will take more time thank you think. You’ll have to follow up and project manage weekly, leaning on both internal and external resources to launch your fund. Stay the course and it will be worth it!

Launching a Fund + Why This Checklist?

We’ve advised and helped launch a number of funds and SPVs in 2021 as the #VC and broader investment fund industry is evolving and growing faster than ever!

We’ve been hearing from many investors that they need a simple list as a starting point to help them prioritize their time, build the right processes, and make more informed decisions.

We’ve updated our 23-Point Checklist below for you to print and check items off as you work through them! Most firms we meet have some form of a marketing presentation and fundraising plan but there’s still a lot more to do! 

There are a lot of great resources that dive deep into the different aspects of fund launch (many of which we’ve written about / linked to in our prior Substack articles or on Twitter @TheFundCFO).

To provide funds with a starting point, we’ve refreshed our 23-Point Checklist that covers the key items you need to get going! Let us know what you think!

23-Point Checklist for Fund Launch (Key Item + Description / Insights)

  1. Marketing Presentation: Define your unique investment strategy! You’ll also need a legal “disclaimer” for this and other marketing materials

  2. Fundraising Plan: Written-down timeline (in a spreadsheet). Helps you talk to the right investors and raise the right amount of capital

  3. Legal & Compliance: Find a lawyer you trust with relevant experience. Do your own research to stay informed and ask for estimated costs

  4. Legal Documents & Entities: Your trusted lawyer will create legal documents and entities required for bank accounts and fund administration

  5. Budget (Fund & Mgmt. Co.): Forecast of revenues and expenses to help make key decisions. See "#3 VC Fund Budget (ASAP)"

  6. Fund Model (Construction & Reserves): Model of how you will invest your fund (keep it simple in Excel first). See "#2 VC Fund Model (Back to Basics)"

  7. Fund Administration: Provider of fund accounting. Find a one that is familiar with your investment strategy and structure

  8. Accounting: Mgmt. co. and personal accounting. Can be included or separate from fund administration

  9. Audit & Tax: Provider of external audits of your fund finances (often required by investors) and taxes (always required)

  10. Bank: Where you keep your cash and access debt. Find a bank that will prioritize your fund size and strategy

  11. Bill Payment: System for paying larger vendors / contractors. See if your bank can assist and/or leverage software (we often see Bill.com)

  12. Credit Card: System for paying smaller, recurring services and software. See if your bank can assist and/or leverage a third-party provider (we often see Brex, Divvy, or Ramp)

  13. Expenses: Properly classify and keep track of expenses. Ask your fund administrator, accountant, or bank; and/or leverage software (we often see Expensify or Divvy)

  14. Email & File Storage: How you correspond with the world and keep your files organized (we often see G Suite, Office, Box, Dropbox)

  15. Email & Scheduling Superchargers: Stay organized and spend less time in email and calendars. We often see Superhuman and Calendly

  16. Pipeline / CRM Tool: System for managing deal flow and external communication (we see spreadsheets and/or software tools like Affinity)

  17. Communication (Internal): Supplement to email for speed. In an increasingly remote world, many firms leverage software (we often see Slack)

  18. Project Management: System to ensure key projects are accomplished (we often see Airtable)

  19. Investor Data Room: Location for investors to access key files (we often see Docsend / Dropbox or Box)

  20. Electronic Signature Software: Sign documents electronically with software (we often see DocuSign or HelloSign)

  21. Human Resources Software: How you’ll pay your team and manage employee benefits with software (we often see Gusto (payroll) or Justworks (PEO))

  22. Insurance (D&O, Other): Insurance that may be needed for your fund and mgmt. co., depending on size and strategy (ask your HR software and lawyer to start)

  23. Website & Social Platforms: You can keep this simple with software like Wix or Squarespace for website, Twitter / LinkedIn for social

That’s all for today folks! Thanks for your support and spreading the word! Share this on Twitter or LinkedIn to help grow “the crew!”