E263: Inside the $5 Billion Fund Backed by 700 LPs

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Dec 16, 2025

Brian Neider, Managing Partner at Lead Edge Capital, shares his experience scaling a growth equity firm from $52M to $5B. He discusses the competitive advantage of having 700 high-net-worth LPs who actively support portfolio companies. Brian emphasizes the importance of disciplined metrics in decision-making and highlights the challenge of managing underperforming 'walking dead' companies. He also underscores the necessity of exit planning from day one, ensuring that transparency and education compound trust with LPs for long-term success.

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ANECDOTE

Hitting The Ground Running With Individuals

Lead Edge's first fund was a $52M vehicle raised from ~100 individual investors instead of institutions.
Brian credits momentum from quick individual commitments for building the firm early on.

INSIGHT

Align Capital With Useful Value-Add

Lead Edge asks LPs to invest only if they're willing to help portfolio companies and matches introductions to relevant company needs.
This aligns capital with active value-add and reduces mismatched, passive investments.

ADVICE

Systematize LP Engagement From Day One

Do intake conversations with new LPs to log how they want to help and then ask the right person for specific company needs.
Keep consistent, frequent communication like quarterly calls and regional dinners to compound trust.

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How do you scale a growth equity firm from a $52M first fund to $5B across six funds—without losing discipline or trust? In this episode, I talk with Brian Neider, Managing Partner at Lead Edge Capital, about building a durable growth equity platform by combining rigorous metrics with deep relationship-building. Brian shares how Lead Edge created a differentiated LP model centered on high-net-worth individuals who actively support portfolio companies, why communication and education compound trust over decades, and how a strict investment framework helps avoid negative alpha as the firm scales. We also discuss why exits matter more than paper gains, how to think about “walking dead” portfolio companies, and what truly energizes long-term investing.

Highlights:

Why Lead Edge raised its first fund from individuals, not institutions
How 700+ LPs became a competitive advantage, not a liability
The importance of disciplined metrics before falling in love with founders
How structured LP engagement improves deal sourcing and outcomes
Why communication, education, and transparency compound trust
The danger of “negative alpha” and unstructured decision-making
How pattern recognition scales exponentially—but portfolio work does not
Why exit planning should start on day one
The hardest part of growth equity: managing the “walking dead”
What motivates Brian most after more than a decade of investing

Guest Bio:

Brian Neider is a Managing Partner at Lead Edge Capital, where he helps oversee the firm’s investment strategy, portfolio management, and operations. He is a member of the firm’s Investment, Disposition, and Management Committees and has led or co-led investments in companies including Toast, Asana, Duo Security, Lucid, Amplitude, and Workhuman. Prior to joining Lead Edge in 2012, Brian invested at Bessemer Venture Partners and FTV Capital, focusing on mid-market growth opportunities across software, internet, and business services. He holds a B.S. in Economics from the Wharton School and an MBA from Columbia Business School and is based in New York.

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Disclaimer:

This podcast is for informational purposes only and does not constitute investment, financial, legal, or tax advice. Nothing in this episode should be interpreted as an offer to buy or sell any securities or to participate in any investment strategy. All opinions expressed by the host and guests are their own and do not represent the views of Weisburd Capital. Participants may hold positions or have financial interests in the companies, funds, or investments discussed. Any references to specific investments are for illustrative purposes only. Investing involves risk, including the potential loss of capital. Past performance is not indicative of future results, and any forward-looking statements are subject to risks and uncertainties. Any third-party data or opinions have not been independently verified. Listeners should conduct their own research and consult their own advisors before making any investment decisions.

(0:00) Introduction (1:20) The first fund, early advice, and challenges with institutional investors (5:33) Building and managing relationships with investors (12:06) The role of LP dinners, NextGen events, and full-time engagement teams (17:01) Key metrics and strategies for investment selection (21:32) Competitive market strategies and the value of LP introductions (25:35) Utilizing introductions, advice, and understanding growth factors (32:40) Addressing challenges with portfolio companies and LP feedback (38:14) People-centric opportunity filtering and advice for early-stage LeadEdge (42:37) Comprehensive framework and strategies around exits (45:16) Closing remarks