The venture capital industry has long been dominated by established firms with deep institutional connections. But in recent years, a new wave of emerging fund managers has begun reshaping the landscape, making venture investing more accessible, efficient, and ethical. On a recent episode of Ignite Podcast, host Brian Bell sat down with Mike Suprovici, co-founder and head of acceleration at Decile Group, to discuss how first-time fund managers are launching successful firms, the challenges they face, and how Decile Group is providing the infrastructure they need to thrive.
The Journey from Founder to Fund Builder
Mike’s path to becoming a leading force in venture capital started with his own entrepreneurial journey. He launched a startup in 2010 and went through Founder Institute, a global accelerator program for early-stage entrepreneurs. Over the years, he transitioned from founder to mentor, eventually helping scale Founder Institute to support thousands of startups worldwide.
But as he worked closely with entrepreneurs, Mike noticed a troubling pattern: founders outside of Silicon Valley often struggled to find fair investment terms, with some angel investors demanding outsized equity stakes in exchange for early capital. This realization led to the creation of VC Lab, a program designed to train and launch first-time fund managers who could provide better capital solutions for startups.
What began as an experimental initiative quickly took off, attracting thousands of applications per cohort. Today, Decile Group powers over 500 venture capital firms globally, providing fund managers with the tools and infrastructure they need to raise and manage capital effectively.
How VC Lab Helps Emerging Fund Managers Succeed
Raising a venture fund is notoriously difficult—only a fraction of those who attempt it succeed. Mike explained that VC Lab helps fund managers navigate the complex process by:
Refining their investment thesis – Before a fund manager starts pitching LPs, they need a compelling, well-defined investment focus. VC Lab ensures GPs have a strategy that resonates with investors.
Providing structured milestones – The program includes key checkpoints where fund managers must show progress, such as securing non-binding commitments (Pledge Agreements for Capital Transactions or "PACTs") from LPs.
Accelerating fundraising – Emerging managers must build relationships with LPs and prove their ability to deploy capital effectively. VC Lab streamlines this process, ensuring managers are well-prepared for investor conversations.
Ensuring ethical best practices – Every VC Lab participant takes the Mensarius Oath, committing to transparency, fair dealings, and ethical investing—something that’s often missing in venture capital.
The impact of the program is clear: out of thousands of applications, only about 300 fund managers per cohort are accepted, and around 50-70 successfully close their first fund. Those who make it through are well-positioned to build long-term, sustainable venture firms.
Beyond Fundraising: How Decile Group is Revolutionizing VC Operations
While fundraising is a major hurdle for first-time fund managers, running a venture capital firm efficiently is an even greater challenge. Many new GPs struggle with back-office operations, compliance, and legal structuring—areas where even small mistakes can have serious consequences.
To solve this, Decile Group built a vertically integrated platform for emerging fund managers, including:
Decile Hub – A software platform that serves as an all-in-one ERP for venture capitalists, managing fundraising, deal flow, and back-office functions.
Decile Partners – A tech-enabled fund administration service that handles legal, compliance, accounting, and operational support, ensuring GPs can focus on investing.
LP Institute – A program designed to educate limited partners (LPs) on how to invest in emerging venture funds, bridging the knowledge gap and unlocking new sources of capital.
Fund of Funds Initiative – Decile Group is now deploying capital directly into top-performing emerging managers through its own fund-of-funds model.
By providing a complete infrastructure for venture firms, Decile Group is helping new managers operate with the same level of professionalism as established firms like Sequoia and Andreessen Horowitz.
The Future of Venture Capital: Micro Funds, AI, and Institutionalization
During the conversation, Brian and Mike discussed some of the biggest trends shaping the future of venture capital. One of the most exciting shifts is the rise of micro funds—smaller, highly specialized VC firms that are able to identify emerging opportunities faster than large firms.
Unlike billion-dollar VC firms that deploy massive checks at later stages, micro funds focus on pre-seed and seed investments, backing founders at the very beginning of their journey. Because these smaller funds rely on investment returns (carry) rather than management fees, their incentives are more aligned with long-term success.
Another key trend is the increasing role of AI in venture capital. With thousands of startups seeking funding, AI can help GPs manage deal flow, identify patterns, and streamline due diligence. Decile Group is already integrating AI-driven tools into its platform, making it easier for fund managers to evaluate investment opportunities efficiently.
Finally, the discussion turned to the institutionalization of venture capital. Mike believes that over the next decade, VC will become a more standardized and transparent asset class—potentially even allowing for publicly traded venture capital investment trusts that would let everyday investors gain exposure to startup investing.
Key Takeaways: What Aspiring Fund Managers Need to Know
For those considering launching a venture fund, Mike offered some practical advice:
Understand the Commitment – Running a fund is a 10+ year endeavor. It’s not something you can do casually on the side.
Focus on Relationships – Success in venture capital is all about building trust with LPs, founders, and co-investors.
Be Ready for the Grind – Many GPs pitch thousands of LPs before securing their first commitments. Persistence is key.
Operate Ethically – The venture industry has its fair share of bad actors. The most successful long-term investors prioritize integrity and transparency.
Use the Right Infrastructure – Emerging managers who leverage the right tools and support systems (like Decile Hub and Decile Partners) have a much higher chance of success.
Final Thoughts: A New Era for Venture Capital
Venture capital is evolving. The old model of a few dominant firms controlling the industry is being challenged by a new generation of emerging managers who are more diverse, ethical, and specialized. Thanks to platforms like Decile Group, these new VCs now have the infrastructure and support they need to compete at the highest levels.
If you’re thinking about launching a venture fund, now is the time to do it. As Mike Suprovici emphasized, the key to success is persistence, a strong thesis, and a willingness to build the right foundation.
For those who want to dive deeper, be sure to check out the full podcast episode. And if you're an emerging manager looking for resources, explore VC Lab and Decile Group’s ecosystem—it could be the game-changer you need to build your own enduring venture capital firm.
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Chapters:
Welcome & Guest Introduction (00:01 – 02:00)
The Origins of VC Lab & Helping Emerging Managers (02:01 – 07:00)
What It Takes to Raise a Venture Fund (07:01 – 13:30)
Ethics in Venture Capital & The Mensarius Oath (13:31 – 19:30)
Common Mistakes Emerging Managers Make (19:31 – 25:45)
Scaling a VC Firm: From Fund 1 to Fund 2 and Beyond (25:46 – 31:00)
The Tech Behind Decile Group: Solving VC’s Infrastructure Problems (31:01 – 38:15)
The Future of Venture Capital: AI, Micro Funds & Institutionalization (38:16 – 45:30)
The Impact of Emerging Managers on the Startup Ecosystem (45:31 – 53:00)
Rapid-Fire Questions: Advice, Trends & Predictions (53:01 – 58:30)
Final Thoughts & Closing Remarks (58:31 – 1:03:39)
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