The process venture capitalists use to raise their own funds can seem like a mystery. However, investors must develop a go-to-market strategy for fundraising with the same care that their portfolio companies use to find product-market fit. While much attention is given to how founders should approach marketing, it is equally important to understand how venture capitalists market themselves. They must sell founders on becoming trustworthy partners and convince limited partners that they are a worthwhile investment.
Isabelle Johannessen recently spoke with Leslie Feinzaig of Graham & Walker and Ross Fubini of XYZ Venture Capital about raising their first funds. Both shared how that challenging experience gave them deep empathy for the founder fundraising journey.
Leslie Feinzaig entered venture capital with very few industry connections. Her fundraising process involved hundreds of pitches and was raised almost entirely from individuals, resulting in 105 limited partners. She explained that without an established track record, investors are betting entirely on the person. It is essentially like raising a gigantic angel round without a lead investor.
With that outsider perspective, Feinzaig has positioned herself as the advisor founders call before a board meeting to practice and discuss strategy.
Similarly, Ross Fubini encourages the leadership teams he works with to carefully consider who they are entering into a partnership with. His evaluation follows three core tenets: the person, the firm, and the terms. He emphasizes that you work with this person for a very long time, so everything matters from whether they are enjoyable to be around, to if you trust them, and if they have the influence to get deals done.
Both venture capitalists noted the significant shift from the 2022-23 bear market, where VCs held all the power, to the current atmosphere of eager dealmaking where founders have more leverage. This change makes choosing the right VC partners more critical than ever.
Fubini called this shift thrilling. While both sides still need to perform due diligence and ensure a good fit, deals can move much more quickly compared to cautious bear markets, which he finds fun and joyful.
Feinzaig and Fubini are full of tactical advice for VCs seeking creative ways to capture founder attention and for founders making strategic choices for their cap tables. While pitch decks and cold emails may have lost some of their former power, building authentic relationships and proving your ability to execute remain the best strategies to attract the right people to work with, from both perspectives.