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Yashwanth Hemaraj
Yashwanth Hemaraj
General Partner @ BGV, Arka | Products, Startups, Strategy
Published Jan 18, 2024
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Venture capital fundraising has been challenging over the past 24 months. Economic headwinds and market uncertainties have led to a slowdown in investment, with VC investment declining by 34% quarter over quarter in 2023. Many firms have delayed fundraising and slowed down their investment pace to make current funds last longer. The process of fundraising has become longer, with some firms extending their fundraising deadlines up to 18-24 months. Despite these challenges, there are signs of improvement. However, as fundraising improves, the ability to effectively reach out to Limited Partners (LPs) can make a significant difference in the success of a fund raise. Through my experiences, I've honed a set of best practices for reaching out to LPs that I believe are essential for emerging VC managers looking to build meaningful relationships with potential investors.
Here's what I've learned and I welcome your learnings and comments:
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Remember, the goal of an outreach email is not just to secure investment (you cannot solicit an investment), but to start building a relationship with potential investors. It is about laying the groundwork for relationships that could flourish for years to come.
Most importantly, in the words of Pitbull, “Ask for money, get advice. Ask for advice, get money twice”.
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Sojy sn
Head of IT, Marcomm & Growth @ European Alliance for Innovation | Decision-Scientist - Accelerating Business Mindshare 🚀 | Fractional CMO | Economist | Writer | Developer | Creativist 🎨
7mo
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Great insights! Building genuine connections with potential investors is key for emerging VC managers.
Nagesh Pobbathi
Product Management Leader, Startup Founder & Advisor. Loves taking on hard and impactful challenges.
7mo
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Great set of learnings. Applies to startup fundraising too!
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TOMEK
8mo
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Great insights on VC outreach strategies; it's always valuable to learn from the experiences of industry peers and refine our own approaches to investor relations.
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