https://thegeneralist.substack.com/p/investors-guides-full-series

https://thegeneralist.substack.com/p/how-to-raise-your-first-fund

https://thegeneralist.substack.com/p/how-to-find-a-unicorn

https://thegeneralist.substack.com/p/how-to-win-a-competitive-deal

Key takeaways

• Differentiation and a strong network are crucial for raising your first fund and securing competitive deals.
• Understanding your unique strengths and building a robust inbound and outbound strategy are key to finding unicorns and winning competitive deals.

Summary

The articles "How to Raise Your First Fund," "How to Find a Unicorn," and "How to Win a Competitive Deal" from The Generalist provide a comprehensive guide for both new and seasoned investors. They cover essential strategies for raising a fund, identifying high-potential startups, and securing investments in competitive environments. The insights are drawn from interviews with top investors who share their experiences and tactics.

Insights

• Understanding the Venture Game:
  • Venture capital is challenging and requires a long-term commitment.
  • Success in VC involves managing long feedback loops and dealing with high error rates.
  • Differentiation and specialization are crucial for standing out in a crowded market.
• Building Proof of Taste:
  • Angel investing, scout programs, and writing are effective ways to demonstrate investment acumen.
  • Creating a fantasy portfolio can help refine investment strategies without financial risk.
• Finding a Partner:
  • Aligning on values and principles with a partner is essential for long-term success.
  • Structured introspection and practical collaboration can help identify the right partner.
• Sourcing Unicorns:
  • Develop a clear understanding of your fund’s position and your unique strengths.
  • Build a founder profile and constrain your focus to improve deal sourcing.
  • Increase your surface area for serendipity through networking and sharing your thinking.
• Winning Competitive Deals:
  • Build a strong network and earn trust with promising founders.
  • Develop specialized knowledge to provide value beyond capital.
  • Move fast, add value, and build personal connections to secure investments.

Implications

• Differentiation and specialization can significantly improve the chances of raising a first fund.
• Building a strong network and demonstrating value to investors are critical for securing competitive deals.
• Understanding your unique strengths and focusing on areas where you have a competitive edge can improve deal sourcing.
• Building trust and personal connections with founders can help win competitive deals.