venturecapital

5/25: "Reading between the lines", 25 LP questions that signal their true intent about your VC fund.

When a prospective LP asks

"HOW WILL YOU HANDLE THE PORTFOLIO CONSTRUCTION AT SCALE?"

What does it really mean?

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FID 17582 | web3 pre-seed @olivecap.eth | podcast, writer olivecapital.vc/media | meme @chaton | swiss community builder @base

When prospective LPs

1) repeatedly compare your approach to that of established managers with years of fund management experience, and
2) demand overly detailed projections or rigid frameworks for portfolio construction, even though first-time funds often require flexibility,

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it often indicates these prospective LPs are:

1) uncomfortable with backing new managers,
2) seeking reasons to justify passing on your fund,
3) biased toward larger, established funds.

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Supportive prospective LPs who are serious about supporting first-time managers typically

1) acknowledge the learning curve and ask constructive questions about how you plan to address it,
2) focus on your unique strengths as an angel investor that can translate into fund management (e.g., sourcing, founder relationships, or sector expertise),
3) show interest in how your strategy aligns with their goals rather than fixating solely on operational challenges.

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Bottom line: they're highly unlikely to commit. Stop the 1:1 discussion and move them onto your newsletter.

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"How will you transition from making individual angel investments to constructing a diversified portfolio at fund scale?"

This is a VALID question, as moving from angel investing to managing an institutional fund requires new skills and processes. HOWEVER, when the conversation with the prospective LPs becomes OVERLY FIXATED on this topic, it can signal hesitation or skepticism about the new GP ability to adapt.

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