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Ignite VC: How GPs Can Scale Smarter and Win LP Trust Early with Dave Perretz | Ep178

Episode 178 of the Ignite Podcast

Running a fund isn’t just about picking great startups or raising capital. Behind every high-performing GP is a system—often invisible—that keeps the engine running. And Dave Perretz knows how to build that engine from scratch.

In this episode of Ignite VC, we sat down with Dave, founder of Signal Fund Services, to unpack what it really means to scale smart, manage complexity, and earn long-term trust from LPs. If you’re a solo GP, first-time fund manager, or preparing for institutional capital, this post is for you.

From Army Officer to Fund Infrastructure Expert

Dave’s story begins in an unexpected place: the U.S. Army. His experience leading soldiers taught him the importance of systems, structure, and strategic thinking—skills that have shaped his approach to building venture fund infrastructure.

After a stint at JP Morgan and a hands-on startup role at 2U Laundry, Dave launched Signal Fund Services to bring institutional-quality operations to emerging managers. His goal? Help GPs scale efficiently without compromising trust or performance.

The CFO Triangle: More Than Just Fund Admin

Most GPs confuse “fund admin” with “fund operations.” Dave breaks it down into a triangle:

  • Accounting: Your fund admin, audit, and tax team—focused on historical reporting.

  • Finance: FP&A, capital planning, secondaries, and financial modeling.

  • Strategic Ops: Managing service providers, syncing systems, and presenting decision-ready data to the GP.

“My job is to take the mental load off the GP,” Dave says. “You should be spending time on deals, not chasing K-1s or reconciling Excel files.”

When Should GPs Bring in Help?

Dave engages with fund managers as early as Fund 0. His message is simple: You don’t need a full-time CFO, but you do need systems.

He’s built a crawl-walk-run model of operational tools tailored for:

  • Fund 0–1: Excel templates, cap tracking, cash flow modeling

  • Fund 2–3: Dashboards, portfolio KPIs, service provider orchestration

  • Institutional scale: Full fund playbooks, DDQs, audit prep, co-invest tracking

Institutional-Ready ≠ Big AUM

One of the biggest myths in venture is that institutional readiness requires $100M+ AUM. Not true.

“I know $25M funds that run like Swiss watches,” Dave says. “Institutional readiness is about systems, not size.”

He encourages GPs to adopt ILPA-aligned reporting, prepare due diligence questionnaires (DDQs), and set up audit-proof processes from Day 1. LPs are looking for consistency, transparency, and discipline—not just returns.

Tools, Systems & Scaling Smarter

On tech stacks, Dave has seen everything: Affinity, Carta, Decile, AngelList, and countless Airtable hacks.

His advice:

  • Don’t overpay for tools you won’t maintain

  • If you’re building your own CRM, own it fully and systematize

  • Use AI where it adds leverage, not just where it feels trendy

He notes the rise of AI parsing tools for founder updates—but warns most still require human oversight. The real value of AI in fund ops? Digesting signals from hundreds of companies and surfacing where GPs need to focus.

The Metrics LPs Actually Care About

Dave highlights three core metrics every GP must master:

  • TVPI (Total Value to Paid-In Capital)

  • MOIC (Multiple on Invested Capital)

  • IRR (Internal Rate of Return)

More importantly, he urges GPs to track plan vs. actual—especially around deployment pace, check sizes, and portfolio construction.

“Are you doing what you said you would do? That’s the metric LPs really care about.”

Market Trends and LP Expectations in 2025

With the venture market maturing and LPs becoming more risk-averse, Dave sees a shift:

  • Longer fundraising cycles

  • Greater scrutiny on back-office systems

  • Increased demand for transparency, co-invest access, and investor reporting

In a world burned by 2021 hype cycles and 2022 corrections, LPs want to know you run a serious business. This includes:

  • Wire controls

  • Co-investment tracking

  • Audit timelines

  • Communication cadences

Rapid-Fire Learnings from Dave

We ended the interview with some rapid-fire insights from Dave. Here are a few highlights:

  • Most underrated metric: Plan-to-actual on deployment and pacing

  • Biggest myth about institutional readiness: It’s not about AUM

  • Most overhyped tool: AI parsing for KPIs (still needs human review)

  • Most underrated CFO trait: Systems engineering mindset

  • Best gut decision: A friend joined Palantir and Stripe by trusting his network—proof that great careers start with small yeses

Final Takeaway

Venture capital is evolving—and the managers who succeed will be the ones who take their operations seriously. Whether you’re raising your first fund or aiming for institutional LPs, Dave Perretz’s message is clear:

“The best firms don’t try to be flashy—they just do the basics really, really well. Over and over again.”

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Chapters:

  • 00:01 Dave Perretz’s Unconventional Path into VC

  • 01:35 Lessons from Military Leadership

  • 04:00 Entering Startups and Building 2U Laundry

  • 06:22 The Origin of Signal Fund Services

  • 07:04 When GPs Should Bring in Fund Ops Support

  • 09:17 Fund Admin vs Fund CFO: Key Differences

  • 11:13 The CFO Triangle Explained 13:41 What GPs Consistently Underestimate

  • 15:25 Fund Ops Tech Stack: Build or Buy?

  • 16:39 The AngelList Debate 17:57 AI in Fund Ops and Its Limits

  • 24:34 What Institutional-Ready Really Means

  • 26:20 ILPA Guidelines and LP Expectations

  • 33:31 What LPs Want in Updates and Dashboards

  • 35:44 Metrics That Actually Matter: TVPI, MOIC, IRR

  • 41:02 Shifting LP Expectations and Market Trends

  • 43:23 Why VCs Fail to Beat the Market

  • 48:33 Rise of Solo GPs and Fund 2–3 Maturity

  • 50:28 Rolling Funds and Founder Vehicles

  • 52:31 How AI Is Changing the Back Office

  • 54:20 Making Better Decisions Under Pressure

  • 57:10 Prioritizing in Chaos and Team Design

  • 59:35 Most Underrated Metric for GPs

  • 01:00:33 Biggest Myth About Institutional Readiness

  • 01:01:02 Overhyped Tech in Fund Ops

  • 01:01:49 Most Underrated Trait of a Fund CFO

  • 01:02:11 Best Gut-Based Investment Call

  • 01:05:01 Audit War Stories and Doc Hygiene

  • 01:06:00 Rapid Fire Questions

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