Started micro vc fund in 2017, now raising for 2nd fund after solid returns

Hi all,
My partner and I started a micro vc fund in 2017 after some big wins angel investing. After a slow first few years, our fund is now 12x gross tvpi and climbing. We have had two >100x marks over the years. Our first fund was a proof-of-concept as we had no institutional record and thus funded by hnw friends and family. We are now looking to raise for a larger second fund from fam offices and institutions.
- Besides pitchbook and preqin, where else should we list our data?
- Is it worth signing up for any of the above and contacting investors that way?
- Is it worth going to investor conferences that advertise x fam offices attending? I think their biz model is pay to attend. They seem a bit sketch tbh
- Any experience with cap raising shops for a mid-sized $150mm fund?

Comments (8)

  • Associate 2 in PE - LBOs
Mar 24, 2022 - 2:49pm

Ignore my title. You should get a dedicated IR person to help you raise this fund. Used to work at a first time VC fund, I joined in Fund II which they raised themselves but they told me for Fund I it was essential to have the IR person.

If you choose not to use an IR person / placement agent, you should have a broad email drip marketing campaign to all family offices and small institutional investors. Within this is the assumption that you already fully utilize all warm leads to HNWIs and capital allocators within, or one degree away from, your existing network.

Separately can I allocate $XX,XXX please? I will "be helpful" (whatever that means but I hear people like to say that in the valley) but in return I would like exposure to being a VC fund investor.

Mar 24, 2022 - 5:45pm
fiat_lux_, what's your opinion? Comment below:

Thanks for that - that does make alot of sense to hire a dedicated IR person before we start raising. I did the IR this fund and while we had less than 20 investors it was extremely time consuming and clearly a full time job. We are strongly considering hiring a placement agent as well. I think 1-2% fee is fair as that is just one year of management fees.

Haha extremely flattered that you would like to allocate to our fund sight unseen! Past results are no guarantee of future results :)

If I could PM you I would, but you're anonymous.

 

Mar 24, 2022 - 5:49pm
whatsapitchbook, what's your opinion? Comment below:

Can I get a PM as well? Interested in getting exposure as well - 5 figure range for me too.

STONKS
  • 1
Mar 24, 2022 - 6:11pm
fiat_lux_, what's your opinion? Comment below:

LOL, appreciate it folks. Seriously. We won't be taking small tickets unless from f&f as every investor takes up the same mindshare.

Who knew that WSO was a great fundraising tool.

Most Helpful
Mar 24, 2022 - 7:35pm
m_1, what's your opinion? Comment below:

How much further can you mine existing LPs? Typically they'll have a network you can tap quite deeply into.

I'd recommend reaching out to a few other EMs too BTW. They're usually quite friendly and forthcoming. There's a podcast catering towards EMs in VCs with some good names you could reach out to for advice. It's published by Samir Kaji.

Provided there isn't much overlap, I've found most other EMs to be very helpful with LP intros by the way. The reason for an LP not investing in an EM is rarely "we ran out of capital".

Mar 24, 2022 - 8:19pm
fiat_lux_, what's your opinion? Comment below:

Thanks for the reminder to mine my LP's networks. It makes a big difference with a bit of credibility under our belt.

Ah, cheers for the podcast rec. I hadn't heard of him before... along those lines, I found this podcast excellent. They interview quite a few institutional LPs including college endowment managers who allocate to VC EMs: Origins, a podcast about limited partners, by Notation Capital.

Good to know about the friendliness of other EMs I'm assuming in the US. I shall reach out. Appreciate that tip.

Mar 30, 2022 - 6:10pm
harveyspankster, what's your opinion? Comment below:

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