Formative’s Post

Advice for raising your first VC fund from Nichole Wischoff, who grew up on food stamps in Arkansas and closed her $20 million Fund 2 in 2022. 1) Get in the mix. Get in the culture. Start building your network. Show up to events, meet people, ask questions, and start helping them. 2) Share. When you meet an interesting founder, connect them with people who can help. Connect them to investors you want to get to know better to build the strength of your own network. 3) When raising a fund, LP relationships are sacred. Build trust with your network over time through steps 1 and 2 above before raising a fund. "Get as close to the nucleus of what’s going on as you can” Nichole is one of the most interesting people I’ve met in the past few years. She grew up on food stamps in Arkansas and recently raised a $20 million Fund 2 for Wischoff Ventures. Listen to her full story + all her actionable advice for others in the comments 👇

I've heard from a handful of VC friends noodling on whether to go out to raise their next fund. Or pursue something totally new. Reminds me a lot of conversations with founders running parallel processes re: fundraise and M&A. If you're considering shutting down your VC fund, how does that work? You have a few options, if you do want to move on. One option, you can put the bulk of the work on a single teammate moving forward, and adjust ownership and carry accordingly. I'm an LP in one fund where the another LP stepped in as GM for the past 5 years and it's still not totally liquidated. Another option is the traditional GP stake route, where you sell a portion of the ManCo. In this case, your partner(s) might opt to stay on while you sell your GP stake. Or another option, a slightly different model. You can sell your entire ManCo. The buyer handles all the admin and you retain a bunch of carry. Am I missing any other solution? Drop me a message if you want to learn more about the above. I know Plan A is to raise. But good to have a Plan B? #zombiefunds #fundraising #venturecapital #gpstake #secondarymarket Ben Bergman OpenLP

Is raising capital just for real estate? No, our global community of students at Capital School is a testament to this. They're not just raising funds for property deals but branching out into e-commerce, theatrical arts, and other industries. Take Nicholas, for instance. Within just four months, he raised a staggering $7 million! And then there's Dustin, who, with dedication and the right strategy, secured a whopping $102 million from a family office. These success stories showcase what's possible when you combine commitment with the right knowledge, tools, and action. So, if you're on the fence, wondering how to fuel your projects, remember: I can teach you how to raise millions. #billionaire #raisingcapital #capitalschool

This sophomore private equity fund looks well on its way to beating the $423m that was raised for its 2021 predecessor. SEC filings reveal the latest for e2p. #privateequity #news #fundraising #fundnews #foodandbeverage Read the full version of 'Entrepreneurial Equity Partners passes $350m in second flagship fund' here: https://lnkd.in/e-FQYW5e

This week, I’ve had a few conversations with clients that reminded me of a quote from Brad Feld that feels incredibly relevant right now: "Fundraising is a marathon, not a sprint. Be prepared for a long journey." I know how tough it is to get that first meeting with an investor, especially in this market. But I want to encourage founders to keep pushing. Keep building traction, and chase down those key partnerships. Put yourself in a position to lead the pack.

How do you define a great #weekend? Some good moments with #family, some #relaxing time? But when this is combined with some #greatlearning and good interaction with people with knowledge, it’s a double whammy! Attended a session with Pushkar Singh and Vivek Jhorar. I must say, the simple ways in which Pushkar puts across the complex technicalities of fund raising with relatable examples, one can get a complete understanding about it from the word go. If you are an early stage #founder and need to understand the intricacies of #fundraising and #investor management then this is the go-to session! Loved every minute of the 2 half a day sessions, with a long list of takeaways. Thank you Pushak and Vivek and great work by the Tremis Capital team. PS: if you are a start-up founder don’t miss their upcoming cohorts!

Starting out on your own is daunting and frankly not something I ever imagined myself doing. But I guess, getting pushed to a wall sometimes has its advantages. After months of thinking and ‘over thinking’ here I am, finally introducing MissionBridge Advisors - my first venture. The thesis is simple - founders need all the help they can get raising funds and creating valuable M&A exits for their investors. Whether it’s crafting a powerful story, creating visibility, figuring valuation or all the trials and tribulations of fundraising and deal making, I am here to work with you every step along the way. As they say - “In the end, we only regret the chances we didn't take”. Here’s to taking chances. Excited to start this journey with MissionBridge! If you know any founders who could benefit from this, please do connect. Would love to start a conversation. #missionbridge #fundraising #newbeginnings https://lnkd.in/gXA6zwNV

The network and reputation of a VC you accept onto your cap table can give you an unfair advantage in future rounds. Investors like Ihar Mahaniok prioritize intros from such investors because it's one of the more reliable signals. Of course, intros from portcos can be great too - just make sure you build the relationship with that founder before asking for an intro. If you've known them a week, it may not be the most compelling referral. Ihar's episode is packed with insights for investors and founders alike. Check it out here: https://lnkd.in/eJj-NaUf #emergingfunds #VCs #venturecapital #intros #fundraising

Hustle Fund is not actively fundraising, as we raised our $46M Fund III last Fall. However, I'm averaging 2-3 new LP pitches per week, which is over 100 pitches with prospective LPs per year. Every conversation is carefully documented, with action items, in our CRM. A mistake that a lot of emerging managers make is to stop pitching after they raised their given fund. Don't do that. Relationships take a long time to warm in our industry, and some LPs will want to watch 1-3 fund cycles prior to feeling comfortable committing to your fund. Which means that you are raising for funds that may consummate possibly 3-10 years out from today. Charles Hudson of Precursor Ventures gave our team some excellent advice early in Hustle Fund's journey, which was to never run out of leads. That means that if you're an early fund manager, you need to be pitching all the time while raising, and all the time when you're not raising. Also FYI: when we are in an active fundraise, I increase my LP pitches from 2-3 LP calls per week to something closer to 10-15 per week. It's a grind, but it's a joy too, as I 100% believe in what we're doing to serve founders, LPs, and the tech ecosystem. *** If you appreciate these insights, please consider signing up for Small Bets, our newsletter for investors: https://lnkd.in/g-teYVYc

Okay for starters, Tiger Global Management, led by founder Chase Coleman, recently closed its Private Investment Partners 16 fund at $2.2 billion, significantly below its initial $6 billion target, marking its smallest fundraising in a decade. Amidst a challenging fundraising climate characterized by declining valuations and industry-wide slowdowns, Tiger Global faces internal shifts and a 33% portfolio markdown in 2022, underscoring the complexities of navigating higher interest rates and investor caution. You see, that's still a decent raise considering that they were playing darts blindfolded during the last cycle! #hedgefunds #vc #fundraising