5 Reasons to Close Your VC fund NOW

The stars have aligned to create what might be the most opportune moment in recent history to close a venture capital fund. Let's explore why this perfect storm of favorable conditions makes NOW the time to take your fund from dream to reality.

Five Reasons Why NOW

The venture capital industry is experiencing a rare moment where multiple favorable conditions have aligned perfectly for emerging managers. The combination of abundant LP capital, attractive valuations, economic timing, political support, and validated impact creates what might be the most compelling environment for launching a new venture fund in recent history. For those who have been considering starting a fund, these five factors make it clear: the time is now.

1. Emerging LP Wallets are Open

Emerging limited partners are actively seeking new venture fund managers to back with unprecedented enthusiasm. Standing on the sidelines now is like watching your friends buy Bitcoin in 2010 and thinking 'nah, I'll wait till later.

➡️ Family offices and institutional investors repositioning toward emerging managers

➡️Over $1B in fresh capital commitments to emerging managers in recent months

➡️Historic levels of LP interest in specialist micro-funds

2. Epic Startup Opportunities and Valuations

The market correction has created a treasure trove of reasonably priced investment opportunities across most sectors (except AI, which is still partying like it's 1999). Better grab your shopping cart before the bargains disappear and everyone starts complaining about prices again.

➡️Founders focusing on real revenue instead of growth-at-all-costs

➡️Strong talent available as tech giants right-size their operations

➡️Reduced competition for deals as tourists have left the market

3. VC has Bull Run Condition...

Economic indicators suggest we're at the starting line of the next venture bull cycle. Last time we checked, the early bird gets the best terms and the best returns.

➡️Historical patterns showing classic pre-bull run indicators with a recession in valuations and new innovations

➡️Perfect timing for building a portfolio at attractive entry points

➡️Reduced competition from established funds still managing their existing portfolios

4. DC Finally Gets Venture

The political landscape has shifted toward leaders who understand the venture ecosystem. We finally have an administration that knows a cap table is NOT a piece of furniture…

➡️Key government positions filled with venture-savvy leaders

➡️Vice President bringing direct VC experience to the White House

➡️Policy makers who understand what startups actually need to succeed

5. Venture Capitals Impact is Proven

Stanford research has conclusively shown that venture capital has driven the unparalleled US economic success. Now we just need Stanford to study why every VC claims to be 'founder-friendly' and 'hands-on.'

➡️Direct causal link between VC dollars and economic growth since 1970

➡️Venture-backed companies leading in R&D and innovation

➡️VC-funded companies representing over half of public market value

Are You Ready to Close?

If you are ready, then you should close now. The two biggest mistakes that managers make are either waiting too long or starting before they are ready. Here is how to know if you are ready:

Closing Readiness Checklist

✅ A clear investment Thesis

✅A viable fund model and due diligence

✅$1+ MM in commitments from limited partners

= CLOSE NOW

Once you have a closed fund, completing additional closings is easier. Everyone takes you more seriously, and you can start doing deals. Given how interesting the market is right now, all investors should be investing.

If you have most of these elements in place, consider partnering with a top-tier fund administrator like Decile Partners to handle your back office operations. Their integrated platform combines legal services, fund administration, and strategic guidance to help emerging managers operate like established firms from day one.

If you're missing several of these elements and are committed to launching a fund, consider accelerating your preparation by joining a venture capital accelerator like VC Lab. With over 550 firms launched and a proven methodology for closing funds within 4 months, VC Lab can help you quickly build the foundation needed for a successful fund closing.

Conclusion

The current market presents a unique opportunity for emerging managers to launch venture capital funds. With abundant LP liquidity, attractive valuations, favorable timing, supportive political environment, and proven economic impact, the conditions are ideal for new fund formation. Those who meet the ready-to-launch criteria should act quickly to capitalize on this rare convergence of favorable factors.

The starter pistol for the next VC bull run just fired – time to decide if you're in the race or just watching from the bleachers. Remember: even Peter Thiel had to start somewhere, and he didn't have five flashing neon signs saying 'START NOW.’