Should I Raise a Fund or Start With SPVs?

For new fund managers, the first step is rarely forming an LLC or opening a bank account. It’s convincing others to trust you with their capital. That challenge can feel especially daunting when you’re building from scratch.

In 2019, my co-founder, Nik, and I initially set out to raise a traditional venture fund. A committed capital model meant we could invest consistently and earn management fees to support our work full-time. But without a prior track record or well-known brand, we quickly learned how difficult that path could be. LPs wanted more proof than we could offer.

So we pivoted.

Instead of raising a fund, we began showcasing individual companies, positioning ourselves as curators of exceptional opportunities. The focus shifted from our fund strategy to the founders we were backing. That smaller ask opened doors.

We ran our first few deals through SPVs, enabling LPs to evaluate each opportunity on its own terms. That structure created urgency, removed friction, and ultimately changed our momentum. Our conversations went from “let’s reconnect in a month” to “I just wired the funds.”

That experience taught us what many emerging managers come to realize: SPVs are often the fastest path to earning trust, building a portfolio, and gaining traction.