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<\/figure>\r\nDownload the template<\/h3>\r\n
[marketo-form form_id=”6782″]<\/p>\r\n
One of the most critical parts of the fundraising process is defining a unique value proposition – a strategy that differentiates your fund from others. \u201cFor us, we didn\u2019t want to just start another firm that was like every other firm out there.\u201d said Arjun.\u00a0<\/p>\r\n\r\n\r\n\r\n Arjun and team embraced a data science-backed investing approach because few others in VC had that ability. They were relentless in their commitment to that approach, both in what they pitched to LPs and what they built internally to evaluate companies. \u201cThe delta between firms who practice the differentiation they advertise and those who don\u2019t is very apparent.\u201d<\/p>\r\n\r\n\r\n\r\n There are all sorts of ways to differentiate. Some examples include deep industry experience, technical knowledge, commitment to operating support, or past investing experience in which they outperformed peers. Regardless, you need a differentiated strategy that will provide unique deal flow. \u201cIf you can\u2019t find that, you probably shouldn\u2019t be in venture.\u201d said Arjun.<\/p>\r\n\r\n\r\n\r\n Once you have defined your strategy, you can identify the LPs you might want to work with. This can include people you\u2019ve known for a long time, loose acquaintances through your network, or new LPs you don\u2019t know, whose strategies align with yours. It\u2019s important to remember that not all of the people you build relationships with will invest in Fund I, but may consider investing in future funds.<\/p>\r\n\r\n\r\n\r\n For Arjun and the Tribe Capital team, it was a combination of old acquaintances and new. \u201cThere are people we\u2019ve known in the industry for a long time who\u2019d been tracking us. There were also people we met for the first time, who believed they would work with us, but not necessarily in the first fund.\u201d he said. \u201cYou\u2019re pretty much building relationships for future funds from day one.\u201d For this reason, a long-term focus is critical.\u00a0<\/p>\r\n\r\n\r\n\r\n Building new relationships takes time. It\u2019s no secret that a strong fundraising deck can open doors or leave a lasting impression. Decks outline the ways your background and strategy align with a potential LP\u2019s, and help establish differentiation. According to Arjun \u201cthe mistake most people make is looking at someone else\u2019s presentation and saying, \u2018why don\u2019t we do something similar?\u2019 when really, your VC pitch deck should be a tool for highlighting what makes you unique.\u201d<\/p>\r\n\r\n\r\n\r\n There\u2019s not necessarily a standard for VC fundraising decks the way there are for company board decks<\/a> or candidate offer letters<\/a>. That said, decks typically include:<\/p>\r\n\r\n\r\n\r\n Our team has seen dozens of these decks and summarized their observations. For a template that covers what we typically see in fundraising decks, download our VC pitch deck template<\/a>.<\/p>\r\n\r\n\r\n\r\n A clear value proposition and a strong deck are a start, but it\u2019s also important to remember that venture is a competitive space where the time horizon for success can be long. Building a company and building a fund are similar in this way. \u201cYou have to believe that you are creating an institution that\u2019s going to outlast you. Anyone doing this as a lifestyle activity is in the wrong business.\u201d says Arjun.<\/p>\r\n\r\n\r\n\r\n For more on ways to differentiate yourself and set your fund up for success in the long run, check out our recently recorded webinar about how to work with LPs in 2020<\/a>.\u00a0<\/p>\r\n\r\n\r\n\r\n
The VC pitch deck template was developed in partnership with Kauffman Fellows<\/a>.<\/em><\/p>\r\n\r\n\r\n\r\n\r\n\r\nUnderstand your value proposition<\/h2>\r\n\r\n\r\n\r\n
Build relationships<\/h2>\r\n\r\n\r\n\r\n
The VC pitch deck<\/h2>\r\n\r\n\r\n\r\n
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It\u2019s your fund<\/h2>\r\n\r\n\r\n\r\n