Traditional LPs that fund Traditional VC firms are just too big to invest in a $10m fund. Beyond “first fund” risk, the fund is simply too small. Most LPs want to invest at least $5m and own no more than 10% of a fund. That means a $50m minimum fund size (maybe $30m in some cases), in the smallest fund, even for an LP that focuses on smaller funds.
But don’t worry.
This is what Liquid (ex-)Founders and HNWI (High New Worth Individuals) are for.
Hustle. Find 10–20 folks to write $500k-$1m checks, that believe in you.
That’s how these funds are done.