Raising a first or second fund is always hard, and the past two years have made that even clearer. After a challenging 2024, 2025 remained a selective fundraising environment. Global VC activity has rebounded in parts of the year, but fundraising for new funds stayed well below the highs of the early 2020s.
Europe mirrors this dynamic. European venture investment totalled approximately $12.6 billion per quarter in 2025, remaining roughly flat compared to prior periods, while Europe’s share of global VC deal value was around 13% in the first three quarters of the year. LP sentiment, while improving, remains cautious, with many limited partners still pointing to liquidity constraints and weak exit markets as key barriers to new commitments.
In this market, LPs are moving more slowly, diligence is harder, and capital is concentrated with managers who show clarity, consistency, and long-term discipline. They’re not just underwriting your strategy. They’re underwriting you: your judgment, your ability to execute, and your capacity to stay steady when markets shift.
And that means momentum often hinges on one differentiator: the strength and durability of your LP relationships.
“Strong LP relationships aren’t built during fundraising, they’re built in the years leading up to it.”
To help emerging managers navigate that reality, we’ve distilled seven strategies that consistently matter most when building trust with LPs, the kind of trust that compounds across cycles and positions you for long-term success.
These insights come directly from what LPs repeatedly emphasise: clarity over flash, consistency over hype, and relationships built well before the fundraise begins.
Here are seven essential strategies to help you build trust, communicate your edge, and secure long-term partners who will back you across cycles.
TL;DR
Have a clear, consistent fund strategy. Don’t pivot mid-stream.
Focus on long-term fundamentals, not hype cycles.
Engage LPs early, but only once your thesis is truly locked.
First-close risk matters; understand each LP’s appetite.
LPAs shape the LP–GP relationship: expense policies and key-man clauses are critical.
LP relationships are built over years, not quarters: communicate consistently.
Continuation/secondary funds require a different LP profile and pitch.
1. A Clear Fund Strategy Isn’t Optional. It’s Foundational
Key insights
LPs expect a well-defined, stable strategy.
Your value proposition must be compelling and consistent.
Frequent strategy shifts signal uncertainty.
LPs expect clarity from the outset. You don’t need a perfect deck or every detail memorised, but you do need a firm, consistent thesis: the opportunity you’re pursuing, why it matters, and why your team is the right one to deliver on it.
LPs want to understand your competitive advantage:
Why you?
Why this market?
Why now?
Tweaking the thesis as you refine your thinking is normal, but flipping between sectors or reinventing your positioning every few months erodes credibility. Stability, clarity, and conviction are what LPs back.
2. Fit Between Team & Thesis > Chasing Market Hype
Key insights
LPs back a team–thesis match, not trend-chasing.
Trendy markets don’t compensate for weak fit or shallow expertise.
Enduring sectors with proven exit routes attract more LP confidence.
Hype cycles come and go — and LPs know it. Emerging managers often feel pressure to jump on the latest hot theme (crypto, AI, climate tech, etc.), but LPs typically avoid managers who chase trends too late.
Instead, LPs reward discipline and depth:
Deep expertise in your chosen sector
Clear understanding of value creation and exits
A coherent thesis that doesn’t depend on hype
Sectors like cybersecurity, AI, biotech, and industrial automation continue to show strong exit potential but what matters more is your authentic edge in the markets you choose.
3. Engage LPs Early — But Only When You’re Truly Ready
Key insights
Early relationship-building is valuable.
But pitching prematurely can damage credibility.
LPs like to track managers over time before committing.
There’s a difference between “starting conversations early” and “showing up before you’re ready.” LPs appreciate being in the loop, but they also expect you to approach them with a strategy that’s already locked.
Approaching LPs too early can backfire if:
Your story shifts from meeting to meeting
Your sector focus is still evolving
Your team composition or fund size keeps changing
Use early conversations to build familiarity, not to ask for commitments. Once your thesis solidifies, those early touch points become powerful momentum.
4. First-Close Risk: Understand What Your LPs Actually Want
Key insights
First-close risk is real and varies widely across LP types.
Some LPs will never anchor a first close; some will, if they believe in you.
You need a mix of LP profiles to build early traction.
Early LP commitments carry unique risks. The fund strategy, size, or team composition can evolve materially between first and final close. Some LPs are comfortable underwriting that risk many aren’t.
Emerging managers must understand:
Which LPs are open to first-close commitments
Which require later-stage validation
How to build a “coalition” of LPs with different risk appetites
Mapping LP profiles and tailoring your approach is essential for building early momentum.
5. LPAs Matter More Than You Think
Key insights
**Limited Partnership Agreements (**LPAs) define the practical realities of your LP–GP relationship.
Expense policies and key-man clauses receive the most scrutiny.
Transparency during negotiation builds long-term trust.
LPAs aren’t back-office paperwork. They’re the relationship contract between you and your LPs.
LPs pay attention particularly to:
Expense policies: What’s chargeable, what isn’t, and how you justify spending.
Key-man clauses: What happens if a core partner leaves?
Governance rights: Oversight, reporting, and investor protections.
Thoughtful, transparent negotiation signals professionalism and reduces friction down the line.
6. LP Relationships Are Built in the “Quiet” Periods
Key insights
LP relationships compound over the years.
Regular updates matter — especially outside fundraising cycles.
Consistent communication builds confidence and momentum.
Fundraising is episodic; relationships are not.
The strongest LP–GP relationships are built between raises. Quarterly updates, portfolio insights, market perspectives, and transparent communication show LPs that you’re disciplined and dependable.
Even if an LP passes on this fund, consistent updates keep you top of mind for the next.
7. Continuation & Secondary Funds Need Different LP Strategies
Key insights
Continuation funds target later-stage, concentrated opportunities.
Early-stage LPs often aren’t the right audience.
You must tailor your strategy to fit the LP profile you’re targeting.
Continuation and secondary funds are structurally different from primary vehicles. They’re often attractive to LPs who focus on late-stage risk/return profiles, structured liquidity, or concentrated bets in proven winners.
This means:
Your early-stage LP base may not be the right target.
Your pitch and materials must reflect different value drivers.
You may need new LP relationships entirely.
Understanding these distinctions is essential for successfully raising across the full fund lifecycle.
Next Steps for Emerging Managers
To put these strategies into practice:
Audit your current LP engagement approach.
Identify where communication or clarity can improve.
Set monthly or quarterly cadences for LP updates.
Formalize your value proposition, sector insight, and edge.
Build long-term trust now — before your next raise.