TLDR:
- Samir Kaji, a seasoned venture capital professional, shares a six-point plan for raising a venture fund as a first-time fund manager.
- Key steps include staying focused on a niche, not worrying about fund size, leveraging personal networks for funding, starting to deploy funds before closing the round, and being prepared for a long fundraising process.
In a recent interview with Nathan Beckord on Foundersuite’s How I Raised It podcast, Samir Kaji, with 22 years of experience in venture banking, provides valuable insights for individuals aspiring to become venture fund managers.
Kaji emphasizes the importance of understanding whether you are a first-time fund or a first-time fund manager, with the latter facing unique challenges but not impossible to overcome. Here are the six key steps he outlines:
- Stay in your lane: Focus on a niche industry that aligns with your expertise and unique strengths.
- Size doesn’t matter: Don’t fret about the size of your first fund; start small and authentic.
- Use a wide funnel: Utilize personal networks, industry connections, and conferences to attract investors.
- Don’t sweat closing the round: Begin deploying funds even before closing the round to demonstrate traction.
- Brace yourself for the first round: Expect a lengthy fundraising process of six to 12 months, particularly challenging for first-time managers.
- If things are looking down, stand solid: Despite market uncertainties, show investors why you are the right manager for the category.
By following Kaji’s advice, aspiring venture fund managers can navigate the complexities of fundraising and position themselves for success in the competitive world of venture capital.
