I am not  starting a fund, but I continue to hear people begin conversations this way.  Though people have advised that I should start a fund or run a fund, and there are others that simply say, ‘you do not want to start a fund.’  People with 3 to 4 funds have a very different opinion than those with limited fund experience.

Last year everyone had their startup idea they wanted to pursue – friends, successful investors, cab drivers, bartenders, investors, lawyers – everywhere I looked I met people thinking about new ideas to start a company.  There is still a universe of startups launching and growing, but we are in a new wave of a growing trend.

Fund Land, quite close to Startup Land, is seeing many new young funds popping up and/or trying to grow.  I continue to run into people that are starting funds, whom have never raised funds before or have no experience in early stage venture.  Some have the right names and partnerships to play in the market and others solicit off of existing investor networks and can appear as a service provider.

What to do as an investor?

  • Interview these fund managers, discuss what companies or deals they have worked on in the past.
  • Discuss current opportunities in the market.
  • Ask people about their work

What to do as an entrepreneur?

  • Get fair deals
  • Learn about your potential investors and know what you want from them before you agree to accept their investment.
  • Always know who you are accepting an investment from and what their investment relationship will do for your company

Starting a fund is more trendy than it was a few months ago and that does not mean that people know what they are doing, it just means more people are excited around this concept.  Yes, some of those recent MBA graduates have realized their startup did not work and now want to start a fund.  No need to be surprised people.  What will be the next trend in 15 months?

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Image source: http://www.clubrunner.ca/

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