When raising a first fund, you sell a future vision. To make this tangible, OMX Ventures leveraged founders they had previously supported. These founders served not only as powerful references but also became Limited Partners (LPs) in the new fund, providing the ultimate validation of the VC's value-add and building a loyal capital base.

Historically exclusive to the wealthy, venture capital is becoming accessible to retail investors. AngelList's USVC fund allows individuals to invest as little as $500 into a diversified bundle of private startups, signaling a significant shift in private market accessibility.

Borrowed from private equity, continuation funds allow a GP to move a prized asset from an old fund into a new vehicle they still control. This provides liquidity to LPs in the original fund who can choose to cash out, while others can roll over and continue to ride the winner.

The path from angel to large fund manager doesn't require a traditional start. When personal capital runs out, using SPVs for high-demand deals builds a track record and LP relationships. This deal-driven, bottoms-up approach can organically lead to raising a dedicated fund.

A significant, yet uncommon, sign of an LP-friendly VC is returning a portion of the carry from Special Purpose Vehicles (SPVs) to the original fund's LPs. This acknowledges that the main fund's resources and reputation sourced the follow-on investment opportunity in the first place.

The initial capital for a new fund-of-funds doesn't come from cold outreach to institutions. The process mirrors an emerging VC's first fundraise, relying on a personal network of operators, VCs, and high-net-worth individuals who already believe in the founder. The strategy is to work the existing network outward, not pitch institutions from day one.

Large LPs are increasingly investing directly in top-tier private tech companies, circumventing traditional VC funds. They gain access through SPVs with minimal fees, creating a competitive dynamic where VCs must justify their value proposition against direct, low-cost access to the most sought-after deals.

Unlike private market ETFs whose prices can be driven by public market sentiment, AngelList's USVC is a closed-end tender offer fund. This structure ensures the price at which investors buy and sell shares is roughly equal to the underlying net asset value (NAV) of the portfolio companies, creating a more stable, fundamentals-driven investment vehicle.

Unlike liquid public market ETFs, new retail VC products have limitations on cashing out. AngelList's USVC targets a 5% quarterly redemption, but if they cannot meet it, investors are stuck, mirroring the illiquid nature of traditional venture capital.