All Questions

Limited Partners (LPs) are generally not issued units, shares, or any equivalents for their investment into a VC Fund - this is a common misconception. LPs simply own a percentage of the limited partnership's interests.  By design, the...

Limited Partners (LPs) are generally not issued units, shares, or any equivalents for their investment into a VC Fund - this is a common misconception. LPs simply own a percentage of the limited partnership's interests.  By design, the structure of VC Funds makes it very difficult for LPs to pull their money out until there are liquidity events (exits). This is because the capital is directly invested in private companies - money is returned to LPs usually when one of those companies undergoes a liquidity event (acquisition, IPO, etc.). 

Usually, the LP will work to find a buyer for the defaulted position. That is the most common way to manage this. 

Usually, the LP will work to find a buyer for the defaulted position. That is the most common way to manage this. 

The most effective way of sourcing LPs is via 1st or 2nd degree connections in their network. 

The most effective way of sourcing LPs is via 1st or 2nd degree connections in their network. 

Limited Partners are 'limited' on purpose. The limitations protect the LP, GP and the fund. If a limited partner were to make an investment decision for the fund, they would loose their limited partner protections.  To answer your quest...

Limited Partners are 'limited' on purpose. The limitations protect the LP, GP and the fund. If a limited partner were to make an investment decision for the fund, they would loose their limited partner protections.  To answer your question directly, you can say something like this in your own words: " Thank you so much for suggesting this investment. We will review it via our process." Then, if the if the investment is way off thesis and does not fit the return profile for the fund, just pass on the investment as normal. 

Assume that everything you hear in the media about Venture Capital is wrong. Journalists are working off bad data and the opinions of a few old VCs that are becoming irrelevant. VC Lab accelerator participants had the best fundraising mo...

Assume that everything you hear in the media about Venture Capital is wrong. Journalists are working off bad data and the opinions of a few old VCs that are becoming irrelevant. VC Lab accelerator participants had the best fundraising month in our history in June 2023.  As far as what LPs are looking for, that's an absolutely impossible question to answer because it really depends on the thesis of the VC and they archetype of the LP.

The answer is No. That being said, depending on your strategy, you may want to put together a set of LP dinners where the LPs can meet the companies. But just set the expectations straight about the rules of engagement.

The answer is No. That being said, depending on your strategy, you may want to put together a set of LP dinners where the LPs can meet the companies. But just set the expectations straight about the rules of engagement.