For emerging venture capital managers, one of the biggest early decisions is whether to go solo or build a team. Solo GPs often move faster and retain full control, while team-led funds can leverage diverse networks and shared responsibilities. But which model sets new managers up for long-term success?
Based on quantitative data from Decile Group’s VC Lab accelerator program for new and emerging managers, including 500+ funds that have successfully completed VC Lab between 2020 and 2024, this report breaks down how solo and team-led funds compare in terms of representation and performance. By the end, you’ll have an answer.
Representation
A Growing Shift Toward Teams Amongst Emerging Managers
Solo-led funds have been the preferred choice among emerging managers, with 60% opting to launch alone versus 40% with a team. However, this trend is shifting. In 2024, the split between solo and team-led funds reached 50-50 – a notable shift from previous years. As more managers recognize the benefits of shared networks and complementary skills, team-based structures are becoming an increasingly viable path for launching a fund.
Solo-led funds have been the preferred choice among emerging managers, with 60% opting to launch alone versus 40% with a team. However, this trend is shifting. In 2024, the split between solo and team-led funds reached 50-50 – a notable shift from previous years. As more managers recognize the benefits of shared networks and complementary skills, team-based structures are becoming an increasingly viable path for launching a fund.
Team-Led Funds Boost Diversity, But All-Women Teams Face Barriers
Team-led funds tend to be more diverse in terms of gender representation, with 42% being led by either all women or mixed gender teams, compared to just 19% of solo-led funds being managed by women. However, while team structures may foster more diversity overall, all women teams still make up only 10% of team-led funds – roughly half the percentage of women-led funds among solo managers. This suggests that while team structures create more opportunities for women in VC, breaking through as an all-woman team remains a challenge.
Established Markets Favor Solo Funds, Emerging Regions Also Embrace Teams
Solo-led funds remain dominant in both established and emerging markets. In traditional ecosystems like the US and EU, solo-led funds account for 63% and 66% of funds respectively, while in emerging markets, such as MENA, solo-led funds are even higher at 67%. In other emerging regions, including Africa and LATAM, the gap narrows slightly to 56% and 55% solo-led funds, whereas maturing markets like Asia and Canada show a more balanced approach – with Asia nearly even at 51% solo-led and Canada leaning towards team-led funds at 53%. These figures underscore that while solo-led funds are common across many regions, maturing ecosystems are increasingly embracing collaborative structures.
