My first role in VC (c. 2013) was Investor Relations for a first-time $40M fund based in LA & Singapore focused on emerging markets. In charge of fundraising, I learned VC from the ground up.

Starting today, I will share best practices I learned & invite others to chime in! https://abs.twimg.com/emoji/v2/... draggable="false" alt="💰" title="Geldsack" aria-label="Emoji: Geldsack">

Step 1: It is important to learn about and differentiate between LP (limited partner) profiles, including:

- HNIs
- Family Offices
- Institutional
- Corporate

& their varying types, incentive structures & preferences. Saying "LP" can mean so many different things in practice.

Even on this singular topic there is so much for us to unpack https://abs.twimg.com/emoji/v2/... draggable="false" alt="😂" title="Gesicht mit Freudentränen" aria-label="Emoji: Gesicht mit Freudentränen"> but I encourage aspiring emerging managers to start with the basics.

Institutional LPs, for example, break into different profiles, including:

- Fund of funds
- Pension funds
- Endowments
- Sovereign wealth funds

The simplistic way to differentiate between institutional LPs and HNIs/FOs/Corporates is that institutional LPs are professional, full-time investors/LPs.

Some % of their total portfolio may or may not include & #39;alternatives& #39; which may or may not include stakes in VC funds.

For emerging managers, factor in the following:

- Fund of funds focused on *your* stage and fund size
- Other institutional LPs w/ an explicit & #39;emerging manager& #39; strategy within their alternatives allocation

Build relationships early. These relationships take *years* to grow.

Fund of funds (FOF) are great because they have visibility across fund managers and, much like a VC-founder relationship, can be *very* active/supportive.

A few well-known & vocal examples in the market include @CendanaCapital @MKRocks & @foundrygroup @LDEakman @jfreester. https://abs.twimg.com/emoji/v2/... draggable="false" alt="🎉" title="Partyknaller" aria-label="Emoji: Partyknaller">

Other institutional investors like pension funds, endowments, sovereign wealth funds et al can also be helpful, but it is important for emerging managers to know these require *very* different types of diligence/communication vs. HNIs (individuals), family offices, & corporates.