VC Lab | Free Venture Capital Training

Founder Institute Launches VC Lab to Cultivate New Venture Capital Funds

The Founder Institute is expanding its efforts beyond startup acceleration. Its new VC Lab aims to facilitate the creation of 1,000 new venture capital funds.

Addressing Ecosystem Alignment

Jonathan Greechan, FI’s co-founder, explained that this initiative seeks to foster greater “alignment” within the startup ecosystem. This alignment is intended to drive the development of companies with a genuinely positive societal impact.

Greechan stated the core belief is that improved alignment between startups and funding sources will result in businesses that are truly beneficial for humanity.

Program Development and Initial Results

The VC Lab has already been conducted through two phases. The first, in spring of the previous year, was considered a minimum viable product. A subsequent session, held during the summer and fall, functioned as a beta test.

Applications for the next cohort are currently being accepted, with a deadline of February 14th.

According to Greechan, the most recent cohort has already yielded 48 funds. These funds are projected to collectively raise $100 million during the first quarter of this year.

Focus on Diversity and Impact

While many of these funds are still actively fundraising and remain undisclosed, Greechan highlighted key characteristics. Approximately one-third are being established by individuals from underrepresented groups.

Furthermore, over half of the emerging funds are concentrating on investments with a demonstrable impact. Pacer Ventures, a $3 million fund focused on startups in sub-Saharan Africa, serves as a prime example of the type of firm the VC Lab intends to support.

Addressing Challenges Faced by New Fund Managers

Greechan observed that the obstacles encountered by new fund managers closely mirror those faced by early-stage entrepreneurs. A common issue is a lack of understanding regarding the necessary steps for successful fund launch.

The VC Lab is designed to provide clarity on these steps, offering a curriculum that includes webinars, virtual office hours, and discussions via Slack.

Commitment to Ethical Values

Participants are also required to affirm The Mensarius Oath. This oath commits them to principles such as striving for positive outcomes for all of humanity and actively opposing abuses of power that lead to unfairness, corruption, or mistreatment.

Program Accessibility and Financial Model

The program is offered free of charge. Participants have the option to pay $500 monthly for access to “premium office hours.” Founder Institute/VC Lab does not take a financial stake in the funds it supports.

Greechan clarified that the VC Lab isn’t viewed as a direct revenue stream. Rather, it’s an extension of FI’s commitment to nurturing a community of impactful entrepreneurs and investors.

He emphasized that while not a charitable endeavor, the initiative offers long-term benefits for all Founder Institute graduates.