Rolling Fund Structure

Shaan describes his Rolling Fund structure for angel investing, which allows him to invest other people's money (OPM) while earning carry and maintaining minimal operational overhead.

Key Points:

• Fund Structure & Operations:

  • Deploys approximately $1M per quarter
  • Typically depletes funds within first 2 months of each quarter
  • Writes larger check sizes compared to previous personal investing
  • Only requires monthly investor updates for maintenance

• Economics:

  • Projects 3x return over 7-10 years (conservative estimate)
  • On $12M deployed over 3 years:
    • 3x return = $36M total return
    • 20% carry = ~$7M to fund manager
    • Timeline: 8-10 years until major returns

• Operational Benefits:

  • No meetings or calls required for fundraising
  • Leverages existing platform (podcast, newsletter, track record)
  • Deal flow comes inbound through network
  • Monthly updates double as personal investment documentation

• Capital Requirements:

  • Previously needed $300-500k personal bankroll to start angel investing
  • Recommended 20-30 bets minimum for portfolio diversification
  • Now primarily uses OPM through Rolling Fund structure

• Time Commitment:

  • Must review enough deals to deploy capital consistently
  • Cannot pause investing due to fiduciary obligation
  • Less profitable than building own business but provides good returns