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Overview

Fundraising is how you raise your next fund. After you’ve invested Fund I and shown results, you need to convince LPs to commit capital to Fund II. This involves identifying potential LPs, preparing materials that demonstrate your track record, managing relationships over months of conversations, and closing commitments. Most of the infrastructure you need for fundraising already exists in tools we’ve covered in previous chapters. Fund operations software generates your track record materials. Your CRM tracks LP relationships. Sourcing-type tools can help identify potential LPs. Unlike other parts of the VC tech stack, there’s no dominant fundraising-specific platform yet. That could be an opportunity. Fundraising is fundamentally relationship-driven, LPs are making long-term commitments based on trust, but there’s room for better tooling that helps funds manage the process more systematically while maintaining the personal touch. This chapter covers what fundraising actually involves from a technology perspective and what tools you already have that support it.

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The Fundraising Process and Tools

From a technology and data perspective, fundraising has a few key components. Most of what you need is covered by tools you already have. Identifying potential LPs: Before you can raise money, you need to know who to talk to. This is like sourcing, but for LPs instead of companies. You want to identify institutional investors, family offices, high-net-worth individuals, and fund-of-funds that invest in your stage, geography, and strategy. Use the same sourcing tools you’d use for finding companies: PitchBook has good data on institutional investors, Specter can help identify active LPs in your space. This is less systematic than company sourcing because LP lists are smaller and more relationship-driven, but the same research principles apply. If you’re interested in specific datasets for LPs, Preqin is more focused on LP data. Finding events and building relationships: Much of fundraising happens at conferences, LP events, and industry gatherings. Track which LPs attend which events, what conferences matter for your stage and geography, and where you can create in-person touchpoints. Some funds maintain spreadsheets of relevant events with expected LP attendance. The same CRM and research approach that helps you identify LPs can help you understand where to meet them. There are some data providers focused on events (e.g., Sourcescrub) which can help find the right gatherings for fundraising. Preparing materials: LPs want to see your track record, fund strategy, team backgrounds, and portfolio performance. Your fund operations platform generates performance data and portfolio summaries automatically. Export this into your pitch deck and fundraising materials. Don’t build separate systems for fundraising collateral, it should come directly from your operations data. Managing the process: Fundraising takes months. You’re talking to dozens of potential LPs at different stages: some in early conversations, others doing diligence, some committed. Use your CRM to track LP prospects and conversations exactly like deal flow. LPs move through stages (initial contact, meeting, diligence, committed). Track what materials they’ve seen, what questions they’ve asked, and when you need to follow up. Some funds maintain separate systems for LP relationships versus company relationships, but this usually isn’t necessary unless you have very different workflows or dedicated teams managing them. Data rooms: When LPs do diligence, they want access to detailed fund information: legal documents, portfolio details, historical performance, compliance materials. Docsend is the standard. Organize your materials into a clean structure, grant access to LPs as they enter diligence, and track what they’re looking at to understand their concerns and interests. Docsend analytics show you which documents get the most attention, which helps you prepare for their questions. Ongoing communication: Throughout fundraising, the GPs and investor relations team will be sending updates, answering questions, and staying in touch with prospects through email and meetings. Use your CRM to track conversations so you maintain context over months of fundraising. LPs often ask similar questions across diligence processes, maintain a document with standard questions and your answers, with links to relevant documents in your data room. This helps you be responsive without making it feel automated. The key insight: Focus on internal tools that help you be more organized, responsive, and prepared. Better CRM so you never forget an LP conversation. Better operations software so you can generate track record materials quickly. Good data room organization so LPs can find what they need during diligence. The tools exist - use them well.

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The Bottom Line

Fundraising is covered by tools you already have. Use sourcing tools to identify potential LPs, fund operations software to generate track record materials, your CRM to manage relationships, and Docsend (or equivalent) for data rooms. Focus your engineering time on tools that improve your investment process (research, deal flow, operations). Fundraising happens episodically (every few years) and is relationship-driven. The tools you already have are sufficient if you use them well. In the next chapter, we’ll look at your fund’s website and public presence, which is often simpler than you think but still important to get right.