How to Find LPs

I spent much of 2023 helping new venture fund managers raise their first funds. This is the playbook I kept coming back to.

The most consistent challenge I see in a first raise is the move from first-degree limited partners to second- and third-degree connections. For a first fund, 50-100% of the capital typically comes from people who already know you. That makes sense: the people closest to you are the ones most willing to take early-commitment risk and bet on potential: an unproven thesis, a limited track record, the person more than the numbers. Kevin Kelly wrote about finding 1,000 true fans. For a new manager, start by finding your first 10 or 20.

But first-degree contacts rarely fill an entire fund. Even the most connected GPs need some out-of-network LPs to reach a final close. And what works to close someone who already trusts you is not what works on a stranger. The further out of network you go, the more you have to invest in trust-building, proof points, and urgency, and the lower your conversion rate falls. Out-of-network LPs simply take more time.

What follows are the strategies I’ve seen produce successful raises across 40+ new venture funds.

What makes a raise work

If I had to boil down what separates a successful first-time raise from a stalled one, it comes down to five attributes, roughly in order:

• Network, by far the most important
• Track record, institutional beats angel
• Ability to sell
• Thesis
• Everything else: deck, data room, and so on

Why network comes first

Your network is the single most important attribute in fundraising, because the majority of first funds are raised from people you already know. If you don’t have the right network, or a large enough one, the honest move may be to delay the raise and spend the time building it. A strong network does more than supply capital; it signals trustworthiness, competence, and achievement to everyone downstream.

Before you’ve closed at least half the fund, institutional investors like funds-of-funds and family offices rarely commit, spin-out managers being the exception. Even well-connected GPs exhaust their first-degree list before the fund is full, so almost everyone eventually engages out-of-network and institutional LPs. But network still rules here, because those warm introductions to strangers come through your first-degree relationships.

So plan to spend 95% of your time on first-degree LPs until you’ve closed at least half the fund. Even institutional investors who seem receptive early are a catch-22. They’re unlikely to hard-commit and wire until you’re halfway there.

The ideal LP persona

How many LPs do you need in the pipeline? It varies, but 200+ prospects, mostly first- and second-degree high-net-worth individuals, is a healthy starting point. Not all LPs are equal, though, and one of the biggest mistakes first-time managers make is mistargeting. Chasing the wrong LPs is a colossal waste of time and a real hit to morale.

The ideal LP for a new manager sits at the overlap of three things:

Alignment. The LP has to believe your fund can produce risk-adjusted returns that fit their goals (outperformance versus their other options) and their interests, whether that’s co-investment, market insight, or an ESG mandate.

Affluence. LPs need to be high-net-worth, accredited, and already comfortable in private markets, people for whom a $100k+ ask isn’t offensive. There’s a real difference between a doctor with three kids making $200k a year and an MD at Goldman who already angel invests.

Affinity. Sometimes this overlaps with your thesis (you both back immigrant founders, say), but more often it’s a shared experience: an employer, a school, mutual friends, a group like YPO, or an accomplishment like passing the CFA.

Moving beyond your first degree

Despite all the harping on first-degree LPs, every manager eventually has to move outward. It’s rare to close a $10M+ fund without at least a few out-of-network LPs. Timing matters. If your conversion on first-degree LPs is weak, your conversion on strangers will be non-existent. Think of your first-degree connections as giving you three things before you go wider:

Don’t move to second- and third-degree LPs until your first-degree conversion is good. The one exception: if you have a few high-stakes first-degree pitches coming, it’s worth dialing in the pitch on lower-stakes LPs first.

Connectors and network leaders

Just as investors reach founders through warm intros, the best path to new LPs is a warm introduction, ideally from an existing LP who has already committed. That’s part of why it can make sense to let in a few small-check investors: if they open doors or bring strategic value, the check size is beside the point.

At VC Lab we call the people who make these introductions connectors. They do two things: make warm intros (and, ideally, talk you up), and help you avoid general-solicitation problems. When a connector introduces you, keep the ask low-stakes. Your goal is a meeting, not a check. And remember reciprocity: connectors follow through when there’s some exchange of value. I’ve seen GPs interview connectors in a newsletter, invite them to events, even help with job searches.

A level up from connectors are network leaders, the super-connectors and thought leaders in your space. These usually aren’t people you already know; they’re the builders of the community you want to be part of. “Community” is an overused word, but done right it’s powerful: think of network leaders as people you’re recruiting to help carry your fund’s mission.

The most common way to engage both is through events. Virtual events work best at the top of the funnel; in-person works best for conversion. It’s old-school, but the GPs I’ve watched close fastest are the ones willing to drop everything and get on a plane to meet an LP face-to-face.

Run prospecting like a sales process

LP prospecting isn’t that different from B2B sales. It’s partly a numbers game, but process and intentionality are what separate good from bad. Treat it like running experiments, a new persona here, a new message there, and let your audience tell you what resonates.

Most first funds should split prospecting into three stages:

The job is to increase your luck surface area: more chances to build relationships, make connections, and give people a reason to engage. Practically, that means sharpening your LinkedIn, getting a real CRM, and building a content plan.

But networking isn’t purely a numbers game. Quality beats quantity. I’ve seen GPs with almost no social presence pull in real interest from out-of-network LPs, and I’ve seen a GP with 25,000 LinkedIn connections struggle. The ones who do best build authentic relationships at scale: they have a personality that draws people in, and they lead with help, not pitch.

From there, build a process. Once you have two or three clearly articulated personas, find LinkedIn connections who match them. Sign up for Sales Navigator and create lead lists mapped to each persona. The lists keep adding matching profiles passively, and Navigator shows you the best intro paths by surfacing mutual connections and shared experiences. Messaging is contextual, but the old line holds: if you ask for money, you get advice; if you ask for advice, you get money. And mind general-solicitation rules. A pitch in a LinkedIn DM is tempting, but it’s likely against the law and unlikely to convert.

I recorded a walkthrough with some LP prospecting exercises and a quick Sales Navigator demo. Watch it here.

Mid-funnel management

I first heard the phrase “mid-funnel management” from Upfront’s Mark Suster, and given his B2B sales background it fits perfectly. A mid-funnel strategy acknowledges that the hard work of closing an LP happens after the first meeting. The goal is to stay top of mind and convey momentum, turning interest into hard commitments.

In practice, mid-funnel is your follow-up engine: emails and calls, a regular newsletter, events, announcing new investments. It’s how you follow up without seeming desperate, and how you manufacture a little FOMO. It’s also your chance to reinforce your differentiation, show you’re executing against the plan, and reduce friction: LP education, lower minimums, or letting people invest through an IRA.

And it’s about reading between the lines. If an LP has strung you along for three or four meetings dangling a big check, assume they’re out and move on. If you’re collecting “no”s without feedback, triangulate on what’s really happening: is the track record thin, is a partner the weak link, are you failing to convey your edge? Plenty of LPs will simply ghost you. Feedback is a gift. Embrace all of it and keep a growth mindset.

For the best GPs, none of this feels like work. They genuinely enjoy building relationships and serving their network. Mid-funnel management isn’t sexy, but it produces results.

Closing

Soft commits are not hard commits. Time kills all deals, so move LPs to a close as fast as you can. An LP who soft-committed in August will not still be gung-ho in December. To hold people accountable, VC Lab pioneered the PACT (Pledge Agreement for Capital Transaction), a non-binding letter of intent that’s firmer than a verbal yes. Whether or not you use one, ask for a specific commitment amount and confirm it in writing right after.

Creating urgency in a close is hard but doable. One good tactic is using multiple closes to lock LPs in quickly after they commit. Fewer closes is not a badge of honor. And while it sounds soft, it’s real: the GPs who keep their energy, passion, and obvious excitement close faster than the ones who come across as worn out or annoyed.

Hopefully this gives a glimpse into how the best GPs approach finding, and closing, their LPs.