Quarterly updates are one of the most familiar parts of the GP-LP relationship. Every fund sends them. Every LP expects them.

Yet few conversations focus on what actually makes them valuable.

The LP Trust Report, a joint effort by EUVC and Embracing Emergence, explores what Limited Partners really want from VC quarterly updates, how they use them and what Emerging Managers can learn from the signals LPs are already reading.

Embracing Emergence does not approach this topic as a distant observer. Its work across the publication, LP community and The Fund Circle gives it a close view of where Limited Partners and General Partners, particularly Emerging Managers, often misalign.

That proximity helped shape the 2025 survey behind this report: asking the right questions, focusing on the right frictions and surfacing an often-overlooked touchpoint in the LP-GP relationship. The findings themselves are grounded in direct LP feedback and set against broader reporting trends.

Together, the report shows how quarterly updates influence communication, due diligence and long-term trust, and why getting them right matters for stronger, more durable fund relationships.

Quarterly updates are often treated as a reporting obligation. Something to send, file and repeat next quarter.

LPs see them differently.

For many allocators, an update is more than a performance summary. It is a recurring signal of how a manager thinks, communicates and stewards capital. It shows whether a GP can turn complexity into clarity, understands what is changing across the portfolio and is willing to be transparent when things are not going to plan.

The report's core premise is simple: your update is a trust proxy.

That matters even more in today's fundraising market. As LPs scrutinise managers more closely, every touchpoint carries weight. A clear, consistent and data-rich update can strengthen confidence. A vague or overly polished one can quietly undermine it.

One of the clearest findings is that quarterly updates are not only for existing LPs. They are also a key part of due diligence.

Nine in ten LPs request past quarterly updates when evaluating a new manager, making them as much a reputation asset as a reporting artefact. If an update is messy, inconsistent or difficult to navigate, LPs may see it as a reflection of the fund's operating discipline.

LPs also want updates that balance speed with substance. They need to scan quickly while still finding enough detail to assess performance, understand portfolio developments and ask better questions.

A strong update helps LPs understand:

The best updates do not force LPs to choose between brevity and depth. They provide a quick overview, then make it easy to explore the detail.

The report highlights several consistent themes.

LPs want structure. They need to understand what changed, why it changed and what comes next.

They want consistency. Changing metrics every quarter, skipping difficult developments or burying the lead creates doubt, even when performance is strong.

They want context. Data matters, but only when it explains what the numbers mean for the fund, the investment thesis and the portfolio.

They also want honesty. Several LPs said they trust a GP more for openly acknowledging a missed milestone and explaining the lesson than for avoiding the issue altogether.

Useful reporting is not necessarily longer. It is clearer, more consistent and more relevant.

The LP Trust Report covers the aspects of quarterly updates that matter most to LPs, including:

This report is for Emerging Managers, GPs, investor relations teams and fund operators who want to communicate more effectively with LPs.

It is equally valuable for Limited Partners who want to understand how peers think about reporting quality, GP communication and the role of quarterly updates in due diligence.

For Emerging Managers, it offers a clearer view of what LPs actually look for. For LPs, it surfaces shared expectations around effective reporting. For the wider ecosystem, it creates a common language around an important but often overlooked part of fund management.

This report is only the beginning.

We are preparing the next survey and want to hear from more LPs. The next edition will continue exploring what makes quarterly updates valuable while examining how expectations are evolving, including the role AI may play in GP-LP communication.

Take the next survey to help guide the next edition and keep this work grounded in what matters most to the venture ecosystem.