Rolling Fund Weekly - Edition #1

Let's Get The Ball Rolling Edition: What Is A Rolling Fund?

Welcome to the inaugural edition of Rolling Fund News, a weekly digest with updates and analysis of rolling funds and their wider impact on venture capital and early-stage investing. For this edition, we’re looking at the origin of rolling funds and explore some of the earliest rolling funds to launch.

Don’t forget to subscribe to Rolling Fund News for the latest updates:

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What Is A Rolling Fund? 🤔

We’ll be diving deeper into the details and mechanics of rolling funds in future editions. A rolling fund is a consecutively-formed, privately-offered investment vehicle structure that allows fund managers to share deal flow with accredited investors on a quarterly, subscription basis while netting carried interest across a multi-year period (e.g. 2 to 4 years).

With a rolling fund, investment capital can be accepted by the fund managers at any time, on an ongoing basis, and deployed almost immediately. You can think of it as a new kind of “Capital as a Service” for founders, investors, and GPs.

Last Week In Rolling Funds 🚀

Here are some of the top articles and blog posts on rolling funds:

AngelList: Sahil Lavingia on Launching His First Rolling Fund On AngelList - Two months ago, the founder and CEO of Gumroad insisted he would never start a fund. Now, he’s launched his own rolling fund with a fully-subscribed list and $1M+ in quarterly backing. There’s really great advice in Sahil Lavingia’s interview with AngelList Venture’s Seif Salama.

CapitalX Is Live — Rolling Fund! - Cindy Bi announces that her fund, CapitalX, is live via the AngelList Rolling Fund program. This is exciting news from an early adopter with big momentum. Be sure to also check out her terms.

AngelList: Introducing Rolling Funds - AngelList Venture’s CEO, Avlok Kohli, introduces the new Rolling Venture Funds model in this article from February 2020, which feels like a lifetime ago.

Silicon Florist: Using the new AngelList “rolling fund” model, a new Portland based early stage venture capital fund emerges - Further discussion and analysis of the Gumroad CEO’s new fund from one of Portland’s finest, Rick Turoczy.

Chic Tweets 🔥

In case you missed them, we highlight a few of the top tweets from the past week:

The concept of rolling funds, explained in a single tweet, as only @naval can do.

Naval @naval

The next-generation of investors is using a publicly marketable, SaaS-like structure for raising their funds. Raise anytime, raise anywhere. https://t.co/t7ItxwqETz

AngelList @AngelList

"Rolling Funds is a step to a decentralized fundraising process that’s good for everybody" -@shl. Learn more about Sahil's new Rolling Fund and more in our interview with him. https://t.co/zL0EnnHT8q

@lpolovets thinks that rolling funds will be very disruptive. (We agree.)

Leo Polovets @lpolovets

1/ After reflecting for a while on @AngelList's rolling funds, I believe they will be very disruptive. Previously the best way to start a VC fund was to build an investing track record. That takes many years. Rolling funds allow people to turn reputations into investing capital.

@vcstarterkit sums up the VC Twitter reaction to rolling funds. Will “Venture Raptivist” @chamillionaire be joining as an LP?

let me know how i can be helpful @vcstarterkit

If you missed VC Twitter's reaction to AngelList Rolling Funds this past week, here is an audio summary of what happened.

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P.S.—Follow us @RollingFund on Twitter for the latest rolling fund updates. Take care and keep rollin’!

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Disclaimer: This material should not be construed as a recommendation for any investment or other advice of any kind and shall not constitute or imply any offer to purchase, sell or hold any security or to enter into or engage in any type of transaction.