Emerging Managers Closing in Uncertain Times

How first-time venture fund managers are succeeding despite market uncertainty

In an era marked by market volatility, geopolitical tensions, and economic uncertainty, successfully closing a first-time venture fund might seem like an insurmountable challenge. Yet three emerging managers have proven it’s not only possible but can be done with strategic precision and persistence. Their experiences offer valuable insights for new fund managers navigating today’s complex fundraising landscape.

Through candid discussions with Jessica Kamada of Swizzle Ventures, Ali Jamal of First Check Ventures, and John Roberts of Boot64 Ventures, we uncover the tactical approaches and mindset shifts that enabled them to secure LP commitments despite headwinds like the crypto crash, Silicon Valley Bank’s collapse, and pre-election jitters. Their success stories demonstrate that uncertain times, while challenging, can actually present unique opportunities for emerging managers who approach fundraising with the right strategy and authentic positioning.

Finding and Converting the Right LP Archetype

Evolution of LP Profiles Across Fund Closes

The successful fund managers revealed a clear pattern in how their LP base evolved from first close to final close. Early investors typically fell into two distinct categories:

• True Believers: Initial LPs who deeply resonated with the fund’s thesis and mission
• Existing Network: People with prior relationships who trusted the fund manager’s capabilities

As funds progressed toward final close, the LP profile shifted toward more economically-driven investors who were attracted by early portfolio performance and momentum.

Strategic Approaches to LP Identification

Jessica Kamada shared that only 12% of her LPs were first-degree connections, highlighting the importance of strategic networking. The managers employed several effective tactics:

• Network Mining: Systematically reviewing LinkedIn connections of existing contacts in relevant sectors
• Warm Introductions: Preparing forwarded email templates to make it easy for connections to make introductions
• Strategic Small Checks: Using smaller commitment sizes ($25k-40k) strategically to build early momentum
• Community Building: Creating opportunities for potential LPs to engage with the fund beyond direct pitches

Building Trust Through Consistent Communication

All three managers emphasized the critical role of regular, structured communication in converting potential LPs. Key elements included:

Newsletter Components:

• Fund closing updates and milestones
• New investment announcements with investment thesis explanations
• Portfolio company progress and achievements
• Upcoming events and speaking engagements
• Personal updates to build authentic connections

“You want to be a lighthouse,” advised Jessica Kamada. “Create a thesis that is memorable and incorporates your special sauce. Think about the two things you want people to remember about you and the firm after each conversation.“

Tracking and Follow-up Systems

The managers implemented systematic approaches to track engagement:

• Weekly review of LP outreach metrics (minimum 15 calls per week)
• Monitoring newsletter engagement and teaser document views
• Regular follow-up with interested parties who showed consistent engagement
• Strategic timing of final close outreach to capitalize on market conditions and portfolio performance

Ali Jamal noted the importance of consistency: “The second that you start taking a break off of one or take your eye off of it, it really slows everything down, and it makes it twice as hard to restart.“

Overcoming Objections in Uncertain Markets

Reframing Market Uncertainty as Opportunity

In challenging market conditions, emerging managers found success by turning perceived obstacles into advantages. Jessica Kamada of Swizzle Ventures notes, “In 2023, if you have a brand new fund, you have no baggage from 2021. You have a fresh start, and you’re investing at the best time.” This perspective helped managers position market uncertainty as an opportunity to invest at attractive valuations.

Distinguishing Questions from Objections

A key insight shared by the panelists was the importance of distinguishing between genuine questions and actual objections. “Sometimes LPs just need a little bit more to get to yes,” explains Kamada. “Just because you get an LP asking you a question does not mean that it’s an objection.”

The managers identified common objection patterns:

• Market timing concerns (“wait until after the election”)
• Lack of track record
• Economic uncertainty
• Minimum investment requirements

Building Credibility Through Consistent Communication

All three managers emphasized the critical role of maintaining regular communication with potential LPs:

• Weekly progress updates: Track and share key metrics
• Monthly newsletters: Portfolio company updates, fund progress, and personal insights
• Follow-up strategy: Multiple touch points over 6-8 months
• Performance tracking: Sharing early portfolio wins and valuations

“People need about seven touch points before committing,” notes Kamada. “They need your newsletter, an event, someone else saying you’re awesome – they need those things.”

Converting Smaller Checks into Momentum

The managers shared how they strategically used smaller commitments to build momentum:

• Accepting select smaller checks (25-40K) from strategic LPs
• Using early commitments to demonstrate traction
• Returning to early supporters for additional investment in later closes
• Leveraging small check writers as references for larger LPs

“I used small checks very strategically as momentum builders in each close,” explains Kamada. “And at the final closing, I went back to many of my small check LPs and asked them if they wanted to double down – many of them did.”

Maintaining Confidence Through Rejection

A crucial mindset shift shared by the panelists was understanding that rejection is part of the process. Ali Jamal emphasizes the importance of remembering “you are the prize” when speaking with potential LPs. The managers noted that top closers only convert about 20% of their prospects, helping normalize the high volume of “no’s” encountered during fundraising.

“Don’t talk to anyone who you know is not going to invest,” became a guiding principle for efficient use of time and maintaining momentum during uncertain market conditions.

Building Trust Through Consistent Communication

Successful fund managers understand that consistent, transparent communication is crucial for building trust with potential LPs. The panelists shared proven strategies for maintaining engagement throughout their fundraising journeys, even during uncertain market conditions.

Newsletter as a Core Communication Tool

The managers emphasized newsletters as their primary tool for maintaining LP relationships:

• Regular Updates: Monthly newsletters keeping potential LPs informed of fund progress
• Portfolio Company Highlights: Sharing success stories, funding rounds, and media coverage
• Personal Insights: Authentic perspectives on investment decisions and market conditions
• Event Announcements: Upcoming speaking engagements and opportunities to connect

“I used the newsletter as my only way to communicate and market with LPs,” says Jessica Kamada. “It became a community building thing for me, sharing funding updates, new investments, and portfolio progress.”

Strategic Follow-up Systems

The managers implemented systematic approaches to tracking and engaging with potential investors:

• Weekly progress reviews tracking LP calls and commitments
• Monitoring newsletter engagement metrics to identify interested prospects
• Strategic use of teasers to gauge interest levels
• Personalized follow-ups based on engagement data

Ali Jamal notes, “If somebody was looking at the teaser multiple times or clicking through newsletter links, it showed they were more actively interested, warranting more direct follow-up.”

Building Authentic Relationships

Beyond formal communications, the managers emphasized the importance of authentic relationship building:

• Personal Touch: Sharing relevant personal anecdotes and experiences
• Consistent Presence: Maintaining regular touchpoints without being pushy
• Value-Add Content: Providing insights and market perspectives beyond fund updates
• Community Building: Creating opportunities for LPs to connect with each other

John Roberts emphasizes, “You are selling yourself. The person is investing in you, so keep refining your story until it works.”

Measuring and Adapting Communication Strategies

Successful managers consistently tracked the effectiveness of their communication efforts:

• Setting weekly goals for LP conversations (15+ calls per week)
• Monitoring conversion rates from different communication channels
• Adjusting messaging based on LP feedback and engagement
• Using data to optimize timing and frequency of updates

Through consistent, authentic communication, these managers built the trust necessary to close their funds, even in challenging market conditions. Their experiences demonstrate that systematic, personalized outreach combined with regular updates can maintain momentum throughout the fundraising process.

“Be a lighthouse,” advises Jessica Kamada. “Create a thesis that is memorable and incorporates your special sauce. Make sure people walk away remembering the two key things about you and your firm.”

Conclusion

The experiences shared by these successful emerging managers demonstrate that while market uncertainty presents challenges, it need not be an insurmountable barrier to closing a first-time fund. Their stories reveal several critical success factors that aspiring fund managers can apply to their own fundraising journeys.

Key takeaways for emerging managers include:

• Be authentically yourself: Rather than trying to fit a traditional VC mold, successful managers leveraged their unique backgrounds, perspectives, and strengths to stand out. As Jessica Kamada demonstrated, sharing personal elements of your story can help build stronger connections with potential LPs.
• Maintain consistent momentum: All three managers emphasized the importance of regular LP outreach and deal flow activities. Setting weekly goals for LP conversations, tracking progress, and maintaining a steady pace of activity proved crucial for success.
• Create strategic communication channels: Regular newsletters and updates became vital tools for building trust and maintaining relationships with potential LPs. These communications served as proof points of progress and helped convert initial interest into commitments.
• Focus on your ideal LP archetype: Rather than pursuing every possible investor, successful managers identified and targeted LPs who naturally aligned with their thesis and approach. This focused strategy led to higher conversion rates and stronger long-term relationships.

As Decile Group’s data shows, emerging managers are increasingly succeeding in raising first-time funds, even in challenging markets. The key lies in combining authentic storytelling, consistent execution, and strategic relationship building. For those embarking on their fundraising journey, remember that uncertainty can actually create opportunities – the key is having the right approach and mindset to capitalize on them.

“There’s probably no perfect time to fundraise,” as Ali Jamal noted, “but these challenging times make it a little bit more interesting for everybody.” By following these proven strategies and maintaining unwavering focus, emerging managers can successfully close their funds even in the most uncertain of times.

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