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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I’m happy to announce that Vengo Ventures is looking to raise a $6M Seed Fund to start investing in the early stage start-ups in India.

There is already an Anchor investor who has come on board and who has committed to invest upto 10-15% of the total fund size. The anchor investor has considerable experience in investments and is a senior executive in the VC circles in India.¬† The initial ground work on the Fund has started and talks are already on with quite a few potential marquee investors ( read LP’s ) to come on board the fund.

The purpose of the fund would be to invest anywhere from $25K upto $100K in start-ups which will have a clear differentiator in the form of an IP. The maximum the fund would invest in the entire lifecycle of the start-up would be $250K.

The focus will be on Start-ups that have a strong team/entrepreneur , which can be capital efficient ( Lean Start-up culture ), an business idea which has a clear path to revenues. Such start-ups can get in touch with me. We believe in being active investors and like to work closely with our portfolio companies in the initial days of the company.

Of the $6M fund $4M is earmarked for the primary seed investments and the remaining $2M will be set aside for follow-on investments into the portfolio companies .

There is considerable interest amongst potential investors and am getting good inquiries from various quarters about the same.

Also if there are any potential investors who are interested to invest in the fund, they can write to me.

I will have more information to provide as regards the fund soon.