Yes, all VC firms have to - by definition - start with a boatload of capital. You’re right, however, that you can get the dollars by bringing in partners. My point stands though. No one is suddenly going to give you a ton a cash simply because you passed three tests. If you have those sorts of friends now, you really don’t need the CFA.
just doing research on cos post charter. watching a lot of investment interviews to learn from others. i plan to start a hedge fund on the next downturn. funded mostly by friends north of 10m easy. current age 29!
here are some benchmarks on the type of money you need to raise to start a firm as well as their age. assuming 3% inflation.
buffett. age 26. 105k. equivalent to 656k today. by age 32. raised 7.2m. equivalent to 38m today.
einhorn. age 28. raised 900k. equivalent to 1.7m today.
paulson. age 39. raised 2m. equivalent to 4m today.
singer. age 33. raised 1.3m. equivalent to 4.3m today.
griffin. age 22. 4.6m. equivalent to $10m today.
soros. age 39. raised 4m. equivalent to 17m today.
cohen. age 36. self raise 20m. equivalent to 43m today.