.png)
The venture capital fundraising landscape can feel like an impossible maze for first-time managers. You need capital to prove your investment thesis, but you need a proven thesis to attract capital.
The solution? Start with the people who already believe in you.
We call them Confidants.
These are the people who know your capabilities, trust your judgment, and understand your potential.
Who Are Your Confidants?
Confidants are people who already know and trust you. They make investment decisions based on their personal knowledge of you, not your track record or fund metrics.
They typically include former colleagues who have seen your work up close, founders you have advised or supported who benefited from your guidance, family members and close friends with investable assets, and industry contacts who respect your expertise and judgment.
These people do not need you to prove yourself. They have already seen you navigate challenges, make difficult decisions, and deliver results. Extending that trust to an investment feels natural.
Why Start Here?
Lowest friction path to capital. You are not spending months explaining why you are qualified. You are building on existing trust.
Creates momentum. Having initial commitments makes every subsequent conversation easier.
More flexible terms. Confidant investors are less likely to request complex side letters or restrictive requirements. You can focus on investing, not managing LP demands.
Your best advocates. Early investors often become your best referral sources. A single warm introduction from a trusted confidant carries more weight than dozens of cold outreach attempts.
How to Approach Your Network
Step 1: Build Your Confidant List
Build a list of 50+ Confidants from your network to ask for feedback on your thesis.
Review your contacts across friends and family, former colleagues and bosses, LinkedIn connections, alumni networks, and social clubs and professional associations. Need help brainstorming your list of contacts? Check out our Start Lab - 50 Confidants Lead resource to help you generate your first 50 leads in just 20 minutes.
Step 2: Ask for Feedback, Not Money
Your initial conversations should not be a pitch. You are asking for feedback on your thesis.
Reach out to schedule 15-minute conversations with a simple message: "I'm working on a new project and would love your feedback."
During each conversation, share your thesis clearly and ask four questions.
- First, what about this thesis is interesting from an investment perspective?
- Second, do you think this is something I should be working on?
- Third, can I come back to you as I refine the thesis?
- Fourth, do you know anyone who might be interested?
Listen for signals. When someone asks "How can I help?" or "How do I invest?" that is your cue. When you hear these signals, ask if they would like to reserve a $25K, $50K, or $100K position in the first closing by signing a PACT.
Remember, anything other than a “yes” is a “no”, and expect 5-10 rejections for every commitment you make. This is normal.
Don’t take it personally. It’s important you move on quickly. If they’re not ready to commit yet, add them to your pipeline and send them your email newsletters to keep them warm. Don’t lose time on people who can’t tell you no directly.
Step 3: Follow Up
Follow-up is the name of the game. This is where most managers fall short.
Follow-up matters. It keeps you top of mind. It demonstrates momentum. It reminds them of the opportunity.
Cadence matters. Follow up directly after each call with a short, clear message and next steps. Then, follow up every 2-3 days with brief, friendly touchpoints. Use news as a reason to reach out: industry updates, startup investment news, closing progress, or deadlines.
Communication channels. Use email for documents, LPA reminders, and formal updates. Keep emails short, deliberate, and reminder-focused. Use news to follow up at least 3-5 times via email.
Use text or WhatsApp for urgent updates, deal news, and the final push before closing. Keep messages brief and informal. This is your critical communication channel for creating urgency.
Use newsletters for broad network activation and thought leadership. Include one clear call to action.
The mindset. You are the prize. Guide them through closing. Stay in the moment. Ask directly. Do not overthink it. Just go.
Step 4: Generate Referrals
Follow up with every Confidant for referrals, including those who declined.
Ask: "Who are 2-3 people in your network who invest in my sector or are interested in venture capital?"
Request warm introductions via email or text to each referral. Track your results: Confidants asked, referrals received, intro meetings scheduled.
Step 5: Make It Easy to Say Yes
Remove friction wherever possible. Send clear instructions. Answer questions quickly. Be available.
Use deals to create urgency. Share company news, round updates, and closing deadlines to apply pressure naturally.
Nurture the "maybes." Some confidants will commit for less than you hoped, or say "not right now." That is fine. Put them on your newsletter. Invite them to events. Keep them in the loop on portfolio wins.
One Decile-powered fund raised an extra $2.5 million just from this nurturing approach. They got "maybes" early, put those LPs on their newsletter, ran amazing events, and those people eventually came in at larger amounts than they originally signaled.
At first close, you can say: "Things are going really well. We're closing on a deal. Would you like to increase your position before we finalize?"
Midway through with markups: "The portfolio is performing. One company just marked up 3x. We're doing a mid-fund close if you'd like to increase."
At final close: "This is the last opportunity to increase your position in Fund I before we close it out."
Common Mistakes to Avoid
Targeting institutions too early. The allure of a significant commitment is tempting. But these institutions require extensive due diligence, multiple meetings, and established track records. You do not have that yet. Start with people who already trust you.
Underestimating your network. Many first-time managers assume their contacts do not have significant investable assets. This is often wrong. Successful professionals, entrepreneurs, and executives frequently have liquid assets and are actively looking for alternative investments.
Being too formal. Confidant relationships thrive on personal connection, not polished pitch decks. A coffee conversation about your fund vision is often more effective than a boardroom presentation.
Avoiding the ask. Some managers feel awkward asking people they know for money. Reframe it: you are offering them access to an opportunity they would not otherwise have. If you believe in your fund, you are doing them a favor by including them.
Not following up enough. Use news to follow up at least 3-5 times. Most managers give up too early. Be persistent without being pushy.
Action Items
This week: List 50+ people in your network who might be confidants. Segment them by relationship strength and estimated capacity. Identify your top 15 warmest relationships. Reach out to schedule feedback conversations.
Before your first close: Have feedback conversations with at least 15 confidants. Send PACTs to anyone who expresses interest. Follow up every 2-3 days. Ask every confidant for 2-3 referrals. Track your progress: Confidants pitched, PACTs sent, PACTs signed.
The Bottom Line
For first-time managers, the path to launching a fund begins with the people who already know and trust you.
Your network is your net worth. The question is not whether you have the relationships to launch a fund. The question is whether you are ready to activate them.
Start with your confidants. Build momentum. Then go after the institutions.