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Should you give an anchor investor a stake in your fund’s management company?

Raising capital for a new fund is always hard. Should you give preferential economics or other benefits to a seed anchor investor, who makes a material commitment to the fund?  These “VCs for investment management companies” are also known as GP Stake investors or fund platforms.  According to [...continue reading]

Should Small Emerging Managers Use Placement Agents?

The pros and cons of choosing a placement agent for small funds It would make life a lot easier for emerging managers if they could outsource the entire fundraising process. But can you? Empirically, few small emerging investment managers hire placement agents, particularly in venture capital. [...continue reading]

15 Steps to Fundraising for Your New Venture Capital or Private Equity Fund

Launching is easy; fundraising is harder. I’ve been fortunate to be a Partner at two different VC firms over the past 9 years, and we’ve grown AUM 10X both times. If you take the fifteen steps below, you’ll have the core of a high-performing fundraising and investor relations function.  Build [...continue reading]

Limited partner due diligence on VC and private equity funds

As a VC, I have a standard due diligence list for companies I’m reviewing.  Similarly, our limited partner investors have their own due diligence standards, and we manage our firm to keep in line with their standards and expectations. I've listed below some of the tools we use to self-assess, from a [...continue reading]

Fundraising hacks for alternative investment managers: venture, private equity, hedge funds

Historically, the process of winning capital from limited partners has been opaque.  However, in the last few years a few have started to use social media and become more transparent.  I particularly like OpenLP.com, Origins, and the Raise blog, all of which include content from multiple LPs. [...continue reading]