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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Its been a very long time since I have blogged.

Its been a very hectic period all these while and am pleased to inform that the fund raising exercise is getting a big fillip. All the hard work put in has started to yield good results and there are a lot of requests coming in for forging partnerships. More & more people/groups are committing to invest into the funds and its interesting to see that the requests are coming in from different parts of the world.

A few overseas funds have also sought support and have shown willingness to participate in co-investing. Vengo Ventures will front end the deal sourcing, deal flow & subsequent activities.

I’m also seeing some very interesting teams & startups who have starting to create buzz.

Significant interest is coming from the US & the European region.  With the kind of interest that has been generated so far, the action in the next few months will be very exciting.

Watch this space for more info.