Typically, a new fund manager needs at least $25M of FUM just to breakeven.
Investors and regulators usually require a track record before they will provide funds or licenses. But for new managers this is often a 'Catch 22': without operating a fund, how can they develop a track record?
It is always harder, and takes longer, to raise FUM than investors initial discussions suggest.
Without years of experience, it is often hard to have the confidence to stick to a clear strategy in the face of market movements.