At Capsule, we’re not just committed to supporting high-growth businesses. We’re also passionate about the venture capital firms that fuel their growth. Take our partner Ada Ventures, for instance. With an impressive portfolio boasting brands such as Huboo, Materials Nexus, and Bubble, Ada Ventures is a dynamic member of the venture capital ecosystem.
We recently co-hosted the Diverse Emerging Managers dinner with Ada Ventures, one of a series of events designed to connect first-time fund managers with Limited Partners (LPs) from its network. The night was a buzzing exchange of ideas, strategies, and experiences. Here’s what we learned…
Kick-starting your journey
For first-time fund managers, one of the biggest challenges is securing the right LPs to champion your vision. This is where the power of networking comes into play. For example, if you want to connect with investors who are passionate about impact-driven ventures then platforms like The ImPact, Phenix Capital, and 2X Global are invaluable.
Here’s a pro tip: when you connect with one family office, don’t hesitate to ask for introductions to others in their network. Give them a short blurb or one-liner that they can send on and include a meeting link to make it as easy as possible to book in time with you. Word of mouth remains one of the most effective ways to build momentum and expand your network.
Mastering the pitch
Pitching your idea to LPs isn’t just about presenting numbers – it’s about understanding what drives the investor in question. Are they focused solely on financial returns, or are they purpose-driven? For those in the latter category, your pitch needs to clearly show how your strategy will make a difference while still delivering solid financial results.
Ultimately, you need to be able to demonstrate that you can deliver a 3x return on an investment within 10 years. And remember, a strong track record adds significant credibility to your pitch.
Building a track record
For emerging managers, building a credible track record can feel like a daunting task – especially without a substantial amount of capital to back up your claims. Fortunately, the event unveiled some creative solutions. Participating in angel syndicates and sharing your investment pipeline with LPs are two great ways to prove your ability to source and evaluate high-potential deals, even on a shoestring.
Another valuable tip we took away is to bring someone with significant experience in investor relations into your discussions with LPs. Not only does this add weight to your pitch, but it also enables you to focus on clearly articulating your vision while your relationship manager supports you on the complexities of the investment process.
Nurturing your pipeline
One of the most powerful takeaways from the event was the realisation that fundraising is essentially a sales process. Just like startups pitching to venture capitalists, fund managers need to build a strong pipeline of LPs, refine their pitches, and keep up consistent outreach. Regularly sharing deal flow and staying on the radar of potential LPs builds trust and piques interest over time.
It’s also important to approach fundraising with a long-term mindset – it’s a marathon, not a sprint. Building relationships with LPs can take years and requires a mix of patience, persistence, and confidence. You might need to meet with numerous potential investors before finding the right one, but each interaction brings you closer to success. The key is to keep cultivating meaningful connections within the investment space and to remain steadfast in your efforts.
Partner with us to protect your vision
Ada Ventures’ event highlighted the importance of community and collaboration when it comes to driving investment.
Drop us a line to see how we can support your portfolio with robust insurance tailored to your investments.