#30 VC Fundraising in 2023

#30 VC Fundraising in 2023

Fundraising Recap

It’s a new year and VC fund managers are back on the fundraising trail! The year 2023 will present it's own unique challenges. You already know this.

We’ve written about fundraising a lot over the years as it’s an important part of any VC fund’s business. If you aren’t able to raise dollars to invest, you won’t be in business for very long.

Previously, we shared detailed insights on the following topics

These posts shared lessons learned from VCs such as Jeff Morris Jr. @ Chapter One, Fred Wilson @ Union Square Ventures, Elizabeth Yin @ The Hustle Fund, Winter Mead @ Oper8r, and Mark Suster @ Upfront Ventures.

All have had different fundraise journeys and share unique insights.


20VC: How to Raise a VC Fund - Core Lessons

I listened to a recent podcast from Harry Stebbings at 20VC and appreciated a number of lessons he shared from his fundraising journey. He was super direct and open about his experience of what worked and what didn’t. Here are the highlights:

  1. Your Fund Size is Your Strategy: your approach will change according to your fund size target (LP type, messaging, documentation, structure etc). MISTAKE: Starting with too high a target fundraise.
  2. Team & Track Record: your team should be compatible and your track record should support your go-forward strategy. DPI (returned capital to investors) will matter more going forward (managers could previously rely on paper mark-up’s in the bull market).
  3. Navigating LPs (Limited Partners) & Messaging: different investors want different things. You’ll need to message differently to each key group you’re targeting.
  4. Momentum & Friendly Referrals: build momentum in your fundraise. When an investor commits, thank them, then ask them to refer three other potential investors. More on that here.

That’s all for today folks! Thanks for your support and for spreading the word! Share this on Twitter or LinkedIn to help grow “the crew!”