Can Modern VC Firms Be Considered “Money Managing” Startups?

Most people think VCs only raise “funds.” But the real journey starts earlier. Many emerging VCs spend 1-2 years raising their first fund — often while bootstrapping the firm itself:

- Some partner with a family office that takes a majority stake in the management company.
- Some secure an anchor LP and sweeten the deal by giving them equity in the GP entity.
- And some raise what’s known as a “Management Company Round” — capital to set up the legal structure, hire a team, build systems, and raise the fund over 12–18 months.

I’ve seen examples of all three in MENA. But recently, I’ve noticed more GPs treating their VC firm like a startup, raising a pre-seed round to build what is essentially a "Money Management" startup. Their product? Managing syndicates, venture funds, secondary funds, venture debt products, evergreen vehicles, you name it.

Traditionally, VC firms invest in startups, not other VC firms. But that’s slowly changing too. Especially:

- As more firms hire tech teams and become AI-native, data-powered, and software-enabled specialized asset managers, and
- As more funds experiment with structured liquidity windows for LPs — borrowing ideas from secondaries and tender offers — so LPs don’t have to stay locked in for 10 years.

So I’m curious…
👉 Can a modern VC firm be considered a tech-enabled money manager "Startup"?
👉 Would you invest in a VC firm itself as an angel (not as an LP in the fund)?
👉 If you’re a VC, have you seen or done this before?

Would love to hear your thoughts.