I have been trying to raise a small VC Fund to start investing in start-ups for a while now.

I believe that I should start blogging my experience along the way as this will give a great insight to many others.

I have been getting advices/suggestions from some people who tell me that trying to raise a small VC Fund ( $6M ) is probably not the right thing as its way too small and potential LPs may not be interested to invest in such a small fund.

I know that any Fund which is less than $25M is not really feasible/viable as the management fee will be too small to run the Fund operations.

However I need to start investing in a small way ( initially $100K and then go upto $250K ) to develop a track record first, show a few good exits or demonstrate a good appreciation of the earlier investments by getting the portfolio companies to successfully raise a follow on rounds and then maybe do a slightly bigger fund raise ( $50M to $75M ) later. However I would like to stay around $100M fund size as I believe being small is the best way for VC Funds to be alert & to be on the toes.

Hence as a start, i’m looking at raising a small $6M Fund to start investing in $100K initially in early stage start-ups. My intent is to invest in interesting & promising teams which are building great products with a bit of traction in the Indo-US corridor.

In the meantime i’m Mentoring/Advising startups by being on their advisory boards. I’m investing my time & energy to provide strategic advice to them. I have got a few startups funded by Angel/s ( an informal Angel network ). I have also advised one of the startups in raising  their Series A investment. I have also invested my personal money in a few start-ups too. All these efforts are towards building a great network which will hopefully go a long way in furthering my intent of raising the VC Fund.

I will continue doing this going forward and will leave no stone unturned in my efforts to raise a small VC Fund.

Currently i’m single in this pursuit of mine and I look forward to like-minded people to partner with me on the fund creation.

I’m also looking for support from people who can add value in any form.

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