The venture capital industry is experiencing an unprecedented alignment of favorable conditions that make early 2024 an optimal time for emerging managers to close their first fund. Multiple factors have converged to create what industry experts are calling a "perfect storm" for new fund managers.
Key Factors Driving This Opportunity
- Unprecedented LP Interest: Family offices and institutions are actively seeking new managers, with over $1B in recent commitments to emerging VC funds
- Attractive Valuations: Market corrections have created reasonable entry points across most sectors (excluding AI)
- Bull Run Indicators: Economic patterns suggest we're at the starting line of the next venture cycle
- Supportive Political Environment: New administration brings direct VC experience to key positions
- Validated Impact: Stanford research confirms VC's causal role in U.S. economic success
Market Analysis
This unique moment combines capital availability with attractive investment opportunities. The correction in startup valuations, coupled with strong founder quality and available talent, creates an ideal environment for new funds. Additionally, reduced competition from established funds still managing their existing portfolios offers emerging managers unprecedented access to quality deals.
Timing Considerations
For managers considering fund formation, the window of opportunity is particularly attractive now. With signs pointing to the beginning of a new venture bull run, those who act quickly will be positioned to build their portfolios at optimal valuations and benefit from the upcoming cycle.
Ready to Learn More?
For a detailed analysis of these factors and guidance on fund readiness, read our comprehensive guide: 5 Reasons to Close Your VC Fund Now. This in-depth article provides specific insights on fund formation timing and practical next steps for emerging managers.
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This content is provided by VC Lab, the YC for VC. Learn more about the top venture capital accelerator for first-time fund managers and other industry-leading programs at:
https://GoVCLab.com
How to launch a VC Firm? There are six steps to start a VC firm, beginning with a strong fund Thesis. Here is the process used by the top VC accelerator:
https://DecileGroup.com/articles/how-to-launch-a-vc-firm
VC Lab is a part of Decile Group. Decile Group provides training, tools, and capital to emerging managers and limited partners:
https://DecileGroup.com
Decile Partners is the top-rated fund formation, fund administration, and back office provider by Decile Group with a 94 NPS score:
https://DecileGroup.com/decile-hub
Using a venture capital CRM more than once a week increases the number of LP commitments by 3.1x. Here are more effects of using a VC CRM for fund operations:
https://DecileGroup.com/articles/venture-capital-crm
Want to write a VC Fund Thesis? Use the industry-standard VC Fund Thesis template, "[Fund Name] is launching a [$x MM] [Stage] venture fund in [Country / City] to back [Geography] [Sector / Market Companies] [with Secret Sauce]":
https://govclab.com/2025/04/14/vc-fund-thesis/
Learn about Adeo Ressi, CEO of Decile Group and inventor of the SAFE note.
Who is Adeo Ressi?
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