Private Market Insights

🤝 Learn to Think Like an LP to Raise Your First (or Next) Fund

Per Weekend Fund: For aspiring venture capitalists and first-time fund managers, navigating the complex world of LP fundraising can be daunting, especially without a proven track record or extensive network. Understanding LP motivations and crafting a compelling pitch is not unlike the experience startup founders go through.

Thankfully in the past 5 years the “Raising in Public” movement has led to the democratization of knowledge on this topic. Arragating advice and insight from 100+ fund managers, Weekend Fund provides a comphesive guide on how to raise from LPs; a powerful resource for fund managers operating with limited resources.

💦 Deliciously Juicy Takeaways

🔎 How to Source & Build Relationships with Potiental LPs

• Start building relationships well before the fundraising process through writing, speaking, and networking activities.

• Leverage your existing network of friends, colleagues, and industry connections for initial commitments and introductions to potential LPs.

• Seek warm introductions from other GPs and committed LPs to expand your network of prospective investors.

• Participate in programs for emerging fund managers to connect with potential LPs.

📚 Learn to Understand LPs Motivations & Expectations

• LPs may have varying motivations, such as seeking returns, deal flow, co-investment opportunities, or exposure to specific trends or sectors.

• Align expectations with LPs regarding their level of involvement, communication, and desired outcomes.

• Prioritize LPs whose motivations align with your fund's objectives and investment strategy.

• Be transparent about your fund's size, strategy, and potential for returns to ensure alignment with LPs.

🤓 Optimize for Selecting the Right LPs, Not Just the Biggest Checks

• Look for LPs willing to take a bet on you and your vision, rather than solely relying on your track record as a first-time manager.

• Prioritize LPs who can help build credibility and validate your fund to other potential investors.

• Seek long-term committed LPs who understand the venture capital asset class and align with your investment thesis.

• Evaluate LPs based on their reputation, responsiveness, and alignment with your values and goals.

🤝 Strategies for Pitching and Closing Your First LPs

• Create urgency and momentum by setting a smaller target fund size for your first fund.

• Focus on telling an authentic story about why founders want you on their cap table, in lieu of objective metrics or prior investment experience.

• Follow up promptly with interested LPs and maintain open communication throughout the process.

• Leverage content marketing strategies, such as creating an "invest landing page" and a content funnel to attract and engage potential LPs.

LP News & Insights

• Aquired Podcast: Capital Formation and the LP / GP Relationship w/ Meghan Reynolds (Altimeter Capital)

• 10X Capital Podcast: 6 Questions You Should Ask LPs Before They Write a Check w/ Katie Riester (Felicis Ventures)

• VC Platform Global Community: The Power of Building a Strong VC Platform Strategy

Curated Deal Flow

Featured Startups of the Week

Each week we highlight several highly-promising early-stage startups actively seeking investments. If you’d like to request a warm introduction, click the “Request Intro” button and complete the form.

Note: We use a double opt-in system to ensure warm introductions; you will only receive a reply if a founder has accepted your request.