- The number one thing that VCs can do to help early stage companies is help them raise capital. If you’re an early-stage VC, build a capital network so you can connect your founders to that capital base.
- Before a closing, a fund just an idea and a deck. After a closing, you cross the threshold of people taking you seriously.
- Word of mouth only happens to great products. If you’re not seeing the growth you want to see, it probably means your product isn’t as good as you think yet.
- A good thesis is a sentence you tell LPs. If this sentence doesn’t get LPs excited, they’ll never back you.
- Venture is a network business, and if you don’t have a large network, it’s hard for you to get a first close. People with large networks are the most-likely to launch a new fund.
- The hardest-to-close LPs are the easiest to find. The tier one, institutional investors will not invest in first-time managers; you’re better off pitching others who will.
- Talking to lawyers early in the process is a waste of money. Don’t talk to lawyers until you have at least 20% of your first close hard circled.