Gifting Pearls of Wisdom
One of the best parts of the early-stage investing community is our incredible “pay it forward” culture. In the spirit of the holiday season, a few of our favorite Limited Partner (LP) investors have graciously shared insights for emerging venture fund managers.
We asked: “What advice do you wish more fund managers understood?”
Here is their invaluable wisdom:
“Do your homework before engaging with prospective investors and adapt your approach to the targeted audience. At each step of the process, assume that your likelihood of success is a function of the effort you put into tailoring your approach to that person – and the specific context in which they operate.”
~ Fund of Fund LP
"Focus on building long-term trust and alignment, not just raising capital. Share your fund's vision, but also demonstrate how you manage downside risk, prioritize transparency, and communicate during challenging times. Consistent, candid updates are valued over only good news, as trust grows through navigating adversity together.”
~ Angel LP
“Provide at minimum quarterly updates / communication, complete with standardized reporting for the fund and full schedule of investments.”
~ Fund of Fund LP
“While it is important to respect your investment thesis as a fund manager, avoid being so rigid that you miss out on exceptional opportunities that could significantly bolster your returns. If your structure allows, consider allocating a small portion of your fund to capitalize on opportunistic deals that may arise, and ensure you communicate this approach transparently to your LPs. ”
~ Angel LP
“AGMs should not be extravagant productions, particularly for emerging funds, but if you are not doing one, offer one-on-one calls/meetings to each investor.”
~ Fund of Fund LP
Wishing you a joyful holiday season! Here is to more collaboration and shared growth in the New Year. 🥂
—
By Shea Tate-Di Donna and Kaego Ogbechie Rust, authors of The Venture Fund Blueprint.
To see more like this, buy The Venture Fund Blueprint book on Amazon, sign up for our newsletter, engage us to collaborate with your organization, and follow us on social media.
—
Disclaimer: The providers, companies, examples, products, and services shared represent only a subset of available options and are based solely on internal fund manager conversations. These options are intended to be a general framework, not an exhaustive catalog, and should not be viewed as legal or tax advice, endorsements, recommendations, approvals, or rankings. We encourage you to do additional research into each category to find the resources that best fit your specific needs.
