Paige Finn DohertyFounding Partner, Behind Genius · Founding Partner at Behind Genius Ventures

Comparing rolling funds to traditional venture funds

19 Aug 2022 · 1 min

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In this brief interview, Speaker A asks Speaker B how they decided between launching a rolling fund versus a traditional venture fund and requests an explanation of the differences. Speaker B explains that the primary driver was timing: rolling funds had just become popular when they wanted to start a fund, so they jumped on that trend. However, they would personally prefer a traditional fund structure, mainly because it allows for public fundraising. They describe their current fund, MACC, as a rare hybrid that combines a traditional fund framework with public fundraising capabilities, referencing the 506 exemption as part of the regulatory approach. The conversation highlights the trade‑off between market timing, structural preferences, and regulatory considerations in venture fund formation.

How did you make the decision between starting a rolling fund versus starting a traditional venture fund? And if you could explain the difference to folks, that would be awesome.
Yeah. So a big reason for me was it's the timing. When I— because when I wanted to start a fund, the rolling funds became popular, so I jumped on the train. But if you ask me, I actually would prefer a traditional fund, but I want to be able to do public fundraising. So I think that's the fund structure for MACC as a rare breed. Yeah, it seems 506 as well. Exactly. So I think that's a very good combination. So if I could change in the future, when I say I want to stay on rolling fund, what I really meant was I want to stay on public fundraising.
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