The Emerging Manager Fundraising Checklist
Whether you completed the Fund Circle or are just getting started, Sydecar’s fundraising checklist walks Emerging Managers through every step of the process, from sharpening your thesis to building LP relationships and closing your first fund.
Last week, I ran the last lap of the first Fund Circle cohort, by hosting the demo day.
The Fund Circle is an anti-accelerator for Emerging Managers. Why would I start an “anti-accelerator”? Honestly, I was sick of seeing programs speeding GPs up towards LP money without being ready or without having uncovered their true edge or differentiation.
We have lowered the hurdles to start Venture Capital funds so drastically, that most GPs just skip doing the foundational work first. Why do I want to do this? Should I be doing this? Can I actually achieve the type of returns this industry demands? What makes me better than the other 6,000+ active funds out there?
I was over seeing the same pitch decks again and again. Joining 20min monologue pitches by Emerging Managers. And listening to strategies that I had heard 20 times in the previous months.
I would have counted it a success of my first cohort if people decided that being an Emerging Manager was not the right path. There is 0 shame in that. This is an impossibly difficult job.
I care about the potential people have. I think sometimes we just need the right setting and community to really spend time with ourselves. That was the honest motivation of the Fund Circle.
I am planning on running a second cohort this fall. This one will be a 6 week program. Weekly sessions, guided reflection, focused attention, and a honest community of peers.
Here is what I learned from this first three month anti-accelerator:
Being an Emerging Manager is a lonely journey. Caring for Emerging Managers matters more than what most LPs think.
Peer-to-peer community is the winning strategy for community building in VC. GPs need each other.
Being able to be honest and transparent with trusted people in Venture Capital is something almost nobody has. Building trust for 3 months with 15 people every week is 80% of the value of the program.
You think everybody has a strong why when they do hard things. It’s not true.
You think nobody wants to waste their time “reflecting”. It’s not true.
The product is the story and the story is the product. Most GPs underestimate the power of their story.
LPs appreciate people approaching things differently and more thoughtfully. I was honestly surprise by the support from my LP community. (shoutout to Jamie Rhode + John Felix + Alex Edelson for joining for 1h sessions each).
Don’t let AI be the first starting place when ideating your pitch / strategy / story. Differentiation comes from within. An AI pitch stands out, not in a good way.
The GPs that commit to a 3-month anti-accelerator are REALLY committed. Some joined in at 2am (European based) for EVERY SINGLE Session.
I love what I do. I didn’t always think that studying theology, monasticism, but working in Venture Capital would make sense. It does.
Some testimonials from the fantastic Emerging Managers from the first cohort:
“The Circle was genuinely one of the best personal/professional development experiences I’ve had. Because the sessions would run late into my evenings, I’d carve out a few hours beforehand for deep work, and those sessions became some of my most focused thinking of the year. I put real effort into the reflection exercises, and the result is that my why now resonates with what we do at Golden Egg Check in a way it never quite did before.
I’d rate everything 11/10, man. I really appreciate the opportunity to be working with you and all the GPs in the circle in such a trusting environment. I can’t wait to see what you’ll have in store for other editions.”
"Joining Benedikt Langer's Fund Circle was the easiest decision I ever made. And, even so, it managed to surpass my expectations. I knew Benedikt was a deep thinker who likes to dig into multiple layers of the why, but going through his favorite mental models, frameworks, and doing the reflections along with him was truly formative for me. I have no doubt that I will be a better emerging manager and investor because of this program and the community earned along the way. I am grateful I joined and I highly recommend it to others starting enduring VC firms."
“Starting a new investment firm is a long-term endeavor that shouldn’t be taken lightly. Benedikt curated a community of emerging managers dedicated to slowing down and doing the important introspective work to ensure they’re aligned with the individuals’ strengths, ambitions, and purpose. His expertise in the early years of standing up a new firm was complemented by a rockstar lineup of experienced fund investors. Joining the Fund Circle is an invaluable opportunity for aspiring fund managers to pressure test and sharpen their intrinsic conviction.”
Benedikt is intentional, knowledgeable, and generous in equal measure. This marks him out -- and by extension the EE community -- as a rare and precious guide star for those building and refining their conviction, identity, and voice.
EE is a rare signal for serious conviction, trustworthiness, and amicability of emerging GPs.
“The Fund Circle provided a space for me to think deeply and intentionally about why and how I'm building Farmhand Ventures. It's very different from the other EM spaces or programs, which tend to be more: "Sell me on why you're 100% sure that you're the best venture capital fund manager x strategy combo. If you can do that, then we'll help you sell it better and grow your LP network."
Both types of exercises are beneficial in sustainably building a legacy firm.
“I wanted to thank you for creating the Fund Circle community and the program. I learned a ton about LP-GP dynamics, building trust, and articulating my conviction and strategy. The program challenged me to think deeply about my "why", my values, professional interests and competencies in a way that builds congruent and authentic narrative that also communicates my commitment. What's just as important and hard to come by is that you've built a trusted and supportive community of friends where we can get honest and direct feedback and help each other succeed as we build our firms. So, thank you and I look forward to being part of and contributing to this community.”