E250: The GP Fundraising Playbook: From First Meeting to Final Close
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This episode features Yasmine Lacaillade, founder of Sinefine and a respected capital formation leader in venture capital. Yasmine shares her journey from TPG Axon in London to joining Drive Capital at Fund I, years before it became consensus. (01:00) She discusses the realities of fundraising, explaining why it never gets easier even at Fund 5 or Fund 6, and how LP sentiment shifts every 2-3 years. (03:54) The conversation explores her market mapping framework, why maintaining a wide top-of-funnel approach is crucial, and how she treats fundraising like enterprise sales rather than just relationship maintenance. (06:25) Yasmine also breaks down her "adding value first" operating principle and explains what she looks for when evaluating new managers.
- Core Theme: Professional fundraising requires treating capital formation as enterprise sales with systematic market mapping, constant networking, and value-first relationship building rather than relying solely on existing connections.
Speakers
Yasmine Lacaillade
Yasmine is the Founder of Sinefine, one of the most respected capital formation leaders in venture capital. She previously worked at TPG Axon in London and was instrumental in building Drive Capital from Fund I, joining years before it became consensus. She specializes in helping venture funds raise capital and has developed systematic approaches to market mapping and LP relationship management across multiple successful fundraises.
Key Takeaways
Treat Fundraising as Enterprise Sales, Not Just Relationship Building
Yasmine emphasizes that successful fundraising requires maintaining a wide top-of-funnel approach rather than relying solely on existing relationships. (06:25) She explains that with conversion rates under 5%, you need to be in touch with over 700 accounts to successfully close a fundraise, regardless of fund size. This approach acknowledges that personal relationships don't automatically turn into transactions, and LP priorities shift significantly every 2-3 years. The key is treating it like enterprise sales where you're constantly building new nodes and networks while maintaining systematic outreach.
Market Map Before You Fundraise
Effective fundraising starts with comprehensive market mapping to identify the right LPs for your specific strategy. (14:48) Yasmine advocates for understanding every player in your target market segments - whether pensions, endowments, or RIAs - and focusing on those whose check sizes match your fund size (ideally up to 10% of the fund). This systematic approach allows you to qualify prospects quickly and avoid wasting time on mismatched opportunities. The market mapping exercise should be strategy-specific, as different LPs have different mandates and timing cycles.
Add Value First in Every Interaction
Yasmine's core operating principle is adding value before asking for anything in return. (09:54) This means respecting LP intel about their current needs, only presenting relevant opportunities, and focusing on giving back people's time rather than consuming it. She applies this same principle when onboarding new GP clients, often reshaping their decks, building data room frameworks, or making valuable introductions before signing any agreements. This approach builds trust and creates positive associations that lead to long-term successful relationships.
People and Team Cohesion Matter Most in Venture Selection
When evaluating new managers, Yasmine looks for one key commonality: people who inspire her and demonstrate strong character. (49:05) She acknowledges that most great managers are "difficult" in the sense that they're eccentric and require high emotional intelligence to work with effectively. However, team cohesion is critical because dysfunctional teams are the standard while highly functional teams are the exception. This is why LPs focus heavily on how long GPs have worked together - the average fund doesn't make it to the third vintage primarily due to people and team dynamics rather than investment performance alone.
Understand That Fundraising Never Gets Easier
Even at Fund 5 or Fund 6, fundraising remains challenging because venture funds only go to market every 2.5 years, and significant changes occur during these intervals. (03:54) Macro sentiment shifts, LP liquidity profiles change, and individual LP priorities evolve substantially over three-year periods. In bear markets, fundraising is hard because coffers are dry; in bull markets, it's hard because LPs are overwhelmed with opportunities. This reality requires fundraisers to maintain skills in networking and business development rather than just relationship maintenance, as the person you were close with in Fund 2 may have completely different priorities by Fund 3.
Statistics & Facts
- Conversion rates in venture fundraising are typically under 5%, requiring contact with over 700 accounts to successfully close a fundraise regardless of fund size. (07:24) This statistic illustrates why Yasmine emphasizes the enterprise sales approach over relationship-only strategies.
- The Middle of America represented the fifth largest GDP in the world when Drive Capital was founded in 2012. (02:31) This fact provided the economic rationale for Drive Capital's contrarian bet on investing in technology companies between the coasts.
- The average venture fund doesn't make it to the third vintage, primarily due to people and team dynamics rather than investment performance. (50:44) This highlights why LPs focus heavily on team cohesion and how long GPs have worked together.
