Building and Leading a VC/Private Equity Fund: Best Practices

Over the past decade, I’ve (somewhat accidentally) put together on this blog a syllabus on how to launch, manage, and invest a VC fund.  Almost all my research is also relevant to private equity.

I’ll start with my series on building your career in private equity/VC:

For building your own investment management firm, I suggest you walk through the 14 steps below:

1) Determine your strategy. 

2) Assemble the team.

3) Launch.

You will next have to address the operational issues: org chart, incorporation, financial structure, and so on.  See Checklist for Launching a New Venture Capital Fund

4) Design your tech stack.  

5) Market.  

6) Raise capital.  

7) Originate investments.  

8) Manage deal flow.  

9) Due diligence.  

10) Negotiate transaction. 

11) Monitor and report investments.

You might be able to use Totem, a VC operating system which we spun out of ff Venture Capital. We also use Carta, which specializes in cap table management and has launched a fund administration service .

12) Accelerate portfolio company value.  

I’ve posted some essays focused on the investors’ point of view:

And also a lot of material from the point of view of a startup management team:

13) Time, market, and exit investment.  

14) Grow the firm.