How to Raise a Venture Fund | Associated Team Synthesis Pt.2
May 23, 2023
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Exploring recent venture fund raises and strategies of Managing Partners. Highlights fund-raising and running strategies of new fund managers. Insights on differentiation, long-term vision, and engaging with LPs. Discusses evolution of fundraising strategies amidst market dynamics and COVID-19 challenges. Explores benefits of starting with a smaller fund size in venture capital for gaining experience and credibility.
Differentiation is crucial in fundraising to attract LPs; track record and community support play vital roles in success.
Deep dives
Unique Fundraising Approaches
The podcast episode delves into the unique fundraising approaches of different venture capital firms. It highlights how each fund raised significant amounts like Cornerstone VC's £20 million fund, PACT's £30 million fund, and Amino Collective's 10 million Euro fund. The episode emphasizes the importance of differentiation when approaching LPs and contrasts modern fundraising techniques with those used in the past, showcasing the evolving strategies in recent times.
Importance of Track Record and Specializations
The discussion underscores the significance of track records in fundraising, with each firm showcasing signals of credibility through prior experiences. Examples include Cornerstone Partners' prior Angel Connective Investment Group work and Amino Collective's exits from fund one before first close. The episode also touches on the agencies of specializations versus generalist approaches in fundraising, highlighting the necessity for differentiation in attracting LPs.
Community Support and Iterative Deck Presentations
The episode emphasizes the importance of community support in the fundraising process, particularly noting the willingness of individuals in the VC industry to offer advice and collaborate. It also underscores the value of ongoing iteration in pitch deck presentations, as highlighted by the experiences shared by various guests in adapting their pitches to suit LP interests and market feedback. The collaborative nature and iterative processes contribute to a more supportive and adaptive fundraising environment for emerging managers.
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Description: For Episode 8 of Season 8, a series on ‘How to Raise a Venture Fund’, Danielle, Francesca and Tunde reunite again to discuss their key takeaways from the last three episodes launched, these episodes are of Managing Partners who have recently launched their first fund.
Rodney (Cornerstone VC), Reem (Pact) and Manuel (Amino Collective) all have fantastic insights to be delved into and we started this episode discussing the differences between Managing Partners who have raised numerous funds to date and those who have just completed their first. We then expanded on the specific highlights from each episode, specifically around each Partners' specific fund raising and running strategies from both a professional and personal stand point and what it took to shape their fund theses into a tantalising offering for LPs. We took so many learnings away from each episode and we cannot thank our guests enough for coming on the show!
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