10 Things No One Tells You About Raising from LPs

What you learn only after trying to raise your first fund.

Raising from LPs is easily one of the murkiest parts of starting a fund. There’s no playbook, no cold email template that magically works, and no YC-style demo day to get you momentum. The process is slow, nuanced, and entirely relationship-driven.

Here’s what often gets glossed over but makes all the difference.

1. You’re already raising before you realize it.

Raising from LPs isn’t a one-off event - it’s a long game that begins before you're even ready to pitch. Building visibility, sharing insights, and participating in the ecosystem helps establish your credibility over time. Your online presence, past angel investments, and track record in community-building often do the early heavy lifting.

2. You don’t need a long track record - just a believable one.

Nobody expects you to have a 5x DPI. But they do want to see some proof that you know how to spot talent early, win allocation, and add value. A couple of angel wins and a clear thesis can go a long way.

"We aim to look for a clear thesis outlining their approach, along with a selection of deals that demonstrate their ability to generate strong returns. This will include both deals currently they will warehouse and opportunities they plan to invest in after the first close. By highlighting deals with clear visibility of potential MOIC and TVPI, EMs can provide LPs with tangible evidence of their track record and build confidence in their investment strategy" - Kunal Bhalerao, (Associate - Innovations & Investments, Baldota Group)

3. Your first checks will come from people you already know.

And that’s okay - that’s how it should be. Friends, old coworkers, founders you’ve supported, these early backers are betting on you. Even small checks matter because they create early momentum and validation.

4. Cold outreach almost never works.

Most LPs don’t respond to cold emails. Warm intros make all the difference and you’ll probably spend a big chunk of your raise just trying to get them. Make the ask easy: give your existing LPs something forwardable with a clear “who to intro” note.

5. LPs put you into mental buckets - know which one you’re in.

Are you the operator-turned-GP? The thesis-driven crypto fund? The regional specialist? Like it or not, they’re going to categorize you. Lean into the bucket that fits, or have a really good reason why you’re breaking out of it.

6. Fund size isn’t just strategy, it’s signaling.

Raising $10M vs. $50M sends very different messages. A smaller fund can signal focus, realism, and lets you close faster. A big fund might sound ambitious, but without anchors or a track record, it can slow everything down.

7. What LPs really want is conviction.

They’re not just buying your thesis, they’re buying your belief in it. You don’t need to have every answer. But if you’re unsure or unclear, they’ll pass. Conviction is what closes.

8. Your LP updates are still part of the pitch.

Even after you close someone, keep the energy up. Regular updates, early wins, and portfolio news help keep soft commitments engaged and create some FOMO. People like being part of something that’s clearly working.

9. You can’t force speed, but you can create signals.

Some LPs will just take forever, it’s their process. What you can do is show progress. Close whoever’s ready, share that publicly, and keep things moving. Momentum is the best nudge.

“Raising from LPs is like building a rocket while convincing people it’ll fly. You’re selling belief before liftoff, clarity before certainty, and momentum before milestones. The story has to travel faster than the fund.”
- Debraj Banerjee, (Fourthway Venture Partners LLP)

10. Raising takes way more time than you think.

Blocking off two months? Double it. You’ll be chasing wires, updating decks, re-pitching people, and following up endlessly. It can start to eat into time that should be spent with founders, which is a problem. Pace yourself, systematise what you can, and protect your calendar.

Conclusion

And I’ll leave you with one final thought - 

“The secret of getting ahead is getting started.”- Mark Twain

Raising from LPs can feel overwhelming - slow timelines, vague signals, and lots of moving pieces. But like most things in venture, momentum builds once you take the first step. Start with the people who trust you, tell a clear story, and keep showing up. Everything else gets easier from there. 

About Taghash
Taghash provides an end-to-end platform for venture funds, private equity, fund of funds, and other alternative investment funds. Over the last seven years, we have served as the tech arm for top VCs, helping them manage operations across deal flow, portfolio, fund, and LP management. Trusted by leading fund managers like Blume Ventures, Kalaari Capital, and A91 Partners, we enable our clients to achieve greater success. Click here to book a demo.