What are the things you should have in order before you begin to fundraise?
- Fund structure: set up and domiciled in a respected jurisdiction (Offshore structures such as Cayman are often blacklisted by European (institutional) investors). Factors to take into consideration include investor preference, market comparison, service providers, tax and regulation.
- The team: comprising of the core General Partner’s, alongside an advisory committee and any additional analytical support. If you are a first time fund, you should be able to detail how you have worked together in the past.
- Your track record: presented on a line by line per investment with key metrics such a investment date, stage, investment amount, current/exited value, multiple.
- Limited Partners: A master file containing your own Limited Partner contacts that will approach in the first instance. If possible, it is important to bring in some commitments first to build trust amongst the new Limited Partners.
- A website! Having a digital presence is an essential part of Limited Partner’s screening process.