Lessons from an emerging VC manager: LP Translator for fundraising

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An emerging VC manager's fundraising lessons... the first two funds are a grind. Now, we’re on our third fund, it feels like we’re almost over the hump, but fundraising never gets easy for most of us. I want to congratulate the emerging VC firms presenting at this year’s RAISE Global conference. As former RAISE presenters, and (soon-to-graduate) emerging managers, we thought we’d share this LP Translator, a lighthearted guide to decoding what LPs really mean during the fundraising process. Fellow GPs, which ones did I miss? 👇 The LP Translator 📣 "Let’s stay in touch.” Translation: We’re not interested. “We want to see your track record develop.” Translation: Either we don't believe in your strategy, or we’re focused on managers with more buzz. “We’re not allocating to new managers right now.” Translation: We’re not allocating to you right now. "Show us your deals so we can get to know you.” Translation: We’d like free co-invests if you get something hot. “We need to see more DPI before we commit.” Translation: We don’t really understand VC, but we’re pretending to. “We’re fully allocated for this year; check in early next year.” Translation: Next year we’ll still be fully allocated (just not to you). “Call us before final close.”  Translation: I’m too polite to say no at this time, so I’m kicking the can down the road. “Your fund is too small.”  Translation: Okay, that one might actually be true (for some LPs). “We went through your data room and want to meet face-to-face.” Translation: We’re genuinely interested, keep going! “Can you send us your LPA for signature?” Translation: Let’s go! 🚀 -------------------------- Fundraising is a long game, longer than we ever expected. We're now seeing how LP relationships are built across several funds, not several months. If they’re investing time to learn about you and your strategy, that’s your best signal of real interest. #emergingmanager #venturecapital #LP #RAISEGLOBAL

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Tom Lazay there's clearly a lot of capital out there. One pretty common pain being felt by LPs is the dearth of distribution from VCs over the last 4 years. That has been putting a lot of pressure on LPs to hold off on allocations to new managers.

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