venturecapital

5/25: "Reading between the lines", 25 LP questions that signal their true intent about your VC fund.

When a prospective LP asks

"HOW WILL YOU HANDLE THE PORTFOLIO CONSTRUCTION AT SCALE?"

What does it really mean?

🧵 1/6

it often indicates these prospective LPs are:

1) uncomfortable with backing new managers,
2) seeking reasons to justify passing on your fund,
3) biased toward larger, established funds.

4/6

When prospective LPs

1) repeatedly compare your approach to that of established managers with years of fund management experience, and
2) demand overly detailed projections or rigid frameworks for portfolio construction, even though first-time funds often require flexibility,

3/6

"How will you transition from making individual angel investments to constructing a diversified portfolio at fund scale?"

This is a VALID question, as moving from angel investing to managing an institutional fund requires new skills and processes. HOWEVER, when the conversation with the prospective LPs becomes OVERLY FIXATED on this topic, it can signal hesitation or skepticism about the new GP ability to adapt.

2/6