Blog
There are no short-cuts for emerging fund managers to solidify their position in the venture ecosystem— managers must:
Build relationships at scale.
Source investment opportunities.
Support the founder ecosystem.
Raise capital from LPs.
Emerging fund managers are prone to burn-out and must be thoughtful about their well-being. In this post, we share 3 things emerging managers can do to rejuvenate and recover without investing significant amounts of their time.
Every emerging fund manager must produce content assets to help streamline and scale their fundraising efforts. The most effective outreach is one that is consistent, systematic, and repeatable. In this post, I share the attributes you need to produce: 1) A pitch-deck, and 2) An introductory snippet. The process of creating these content assets will also force you to clarify key aspects of your fund to a higher degree—the process is just as beneficial as the outcome!
When venturing out to raise your first fund, you must have realistic expectations for how long it will take to raise your first fund, and more importantly, the outreach efforts required to do so. Many LPs, without saying explicitly, will want to commence conversations 12 months (at minimum) before writing a check into your fund. And 12 months is on the short side of the time scale.
Most LPs will want to get to know you over time before committing capital, there are a few 'watch-its' when engaging with LPs. In the early days, your goal for LP meetings is to secure the next meeting to continue building the relationship. Therefore, you do not want unnecessarily and unintentionally trigger alarm bells, which will close the door on the relationship. In this post, we share six things LPs don't want to see in emerging fund managers— we also share what they would prefer to see instead.
The venture space is saturated with emerging funds and venture brands— this trend is likely to continue for the foreseeable future. However, as a result, it has become challenging for LPs to differentiate one venture fund from another. Furthermore, it is increasingly challenging for founders to find and partner with smaller, value-add funds, especially if so many other smaller funds sound like they are promising and saying the same thing.
Therefore, without clear differentiation, it will be an uphill battle for first-time emerging fund managers GPs to:
Secure meetings with LPs who can provide the capital for your deployment.
Attract top founders and their companies to invest in and grow.
Capital is a great amplifier. When great ideas meet the right people, the proper application of capital helps startups commercialize incredible products and services. The great news: there is an increasing number of talented, mission-driven emerging managers entering the venture space. These emerging managers possess the following:
The authentic desire to enrich the startup ecosystem by building lasting relationships, and effectively deploying capital to support founders and their teams.
Empathy, which enables them to resonate with founders and their teams.
First-hand operational experience, as a founder or an executive.
Strong recognition of the importance of helping investors (Limited Partners, LPs) realize returns on their investment.
