"The way venture capitalists think about fund-raising can be a black box. But investors must think about their go-to-market strategy for raising their own funds, just as much as they think about how their portfolio companies find their market fit. All season on Build Mode, we've explored how founders should approach marketing, but this week we're exploring how VCs sell themselves to founders as trustworthy partners, and to LPs as worthwhile investments."
"Feinzaig came into venture capital with very few industry connections. "It was hundreds of pitches. It was raised almost entirely from individuals. We ended up with 105 LPs," she said. "If you don't have a track record, then what they're investing in is in you. Like it is basically, like, raising a gigantic angel round with no lead." With that outsider perspective she's been able to position herself as the call founders make before they meet with their board to practice and discuss strategy."
Venture capitalists must develop go-to-market strategies to raise funds, similar to how founders find product-market fit. Leslie Feinzaig entered venture capital with very few industry connections and raised her first fund largely from individuals, ultimately securing 105 LPs. The lack of a track record required selling personal credibility and acting like an angel round without a lead. Feinzaig uses her outsider experience to position herself as the preparatory call founders make before board meetings. Ross Fubini evaluates partnerships using three tenets—person, firm, terms—and emphasizes long-term personal fit, trust, and operational support. The market shifted from a 2022–23 bear dynamic to a more founder-favorable environment, making VC selection more consequential for founders.
Read at TechCrunch
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