Raising a venture fund is notoriously challenging, especially for emerging managers who are navigating the world of limited partners (LPs) and high-net-worth investors for the first time. What does it take to convince LPs to back a first-time fund? How do family offices think about venture capital?
In this episode of Ignite LP, Brian Bell sits down with Benedikt Langer, General Manager of ToV Lending and founder of Embracing Emergence, to explore these questions. Benedikt has a unique background, having transitioned from venture capital and real estate investing into a role where he connects LPs with emerging managers, providing transparency into the often opaque world of family office investing.
For those who may not have time to listen to the episode, here are the key takeaways that emerging fund managers, LPs, and startup investors need to know.
Benedikt’s Journey: From Germany to Venture Capital
Benedikt’s path to venture capital is anything but traditional. Growing up in Germany, he initially had no direct connection to the VC world. His life took a dramatic turn when he met his wife on the Camino de Santiago, a 500-mile pilgrimage across Spain. The two quickly got engaged and moved to the U.S., where he found his way into family office investing.
His entry into the space was largely serendipitous, but he quickly realized that there was a major disconnect between LPs and emerging fund managers. Many first-time GPs struggled to gain access to LPs, and family offices often lacked structured ways to evaluate venture capital investments.
Seeing an opportunity to bridge this gap, Benedikt launched Embracing Emergence, a newsletter and community that offers insights into how family offices think about investing in early-stage venture funds. His mission: to make LP-GP relationships more transparent and accessible.
The Biggest Challenges Emerging Fund Managers Face
For many first-time fund managers, the hardest part of raising capital is simply getting in front of LPs. According to Benedikt, one of the biggest barriers to trust is the fact that most LPs—especially family offices—don’t typically take emerging managers seriously until their second or third fund.
Why is it so hard for first-time funds to raise capital?
Lack of a track record: Most LPs prefer to see a history of successful investments, which many emerging managers don’t yet have.
Time is the biggest hurdle: LPs have limited bandwidth and are flooded with investment opportunities, making it difficult for new GPs to even get a meeting.
Trust is built over years, not months: Many LPs wait to see how a GP performs over multiple cycles before investing.
How Can Emerging Managers Overcome This?
Leverage strong introductions. LPs take introductions far more seriously than cold outreach. A warm intro from a trusted GP, LP, or founder can dramatically increase your chances of getting a meeting.
Showcase your network and access. LPs don’t just care about past investments—they care about whether you have the right to access the best founders. Highlighting relationships with top founders and investors can be just as powerful as a formal track record.
Develop a unique and compelling narrative. Instead of relying on generic pitch decks, emerging managers should clearly articulate their unique value proposition. Benedikt stresses the importance of avoiding "copy-paste" pitch decks filled with logos and generic co-investor slides.
The Debate: Concentrated vs. High-Volume VC Strategies
One of the most interesting discussions in the episode revolved around the different approaches to portfolio construction.
Brian shared how Team Ignite takes a high-volume investment approach, making over 100 investments per year using a data-driven strategy that leverages AI and network intelligence. This contrasts with the more concentrated approach, where VCs make fewer, higher-conviction bets.
Benedikt emphasized that both strategies can work, but they require different skill sets:
Concentrated investing requires deep industry expertise, strong conviction, and hands-on founder support.
High-volume investing relies on strong network effects, scalable sourcing, and a broad approach to portfolio construction.
Which strategy is better? It depends on the fund manager’s strengths. The key takeaway: A fund’s investment model should align with the GP’s background, skills, and network.
How Family Offices Evaluate Emerging Fund Managers
One of the biggest misconceptions about family offices is that they evaluate fund managers the same way institutional LPs do. In reality, family offices have a much more informal decision-making process.
How do family offices decide to invest in a venture fund?
Conversations matter more than pitch decks. Benedikt shared that 100% of LPs surveyed said they don’t want to see a pitch deck on the first call. They’d rather have a natural conversation and get to know the GP before reviewing materials.
Decision-making is personal and relationship-driven. Unlike institutional investors, family offices often rely on gut instinct, trust, and relationships when making investment decisions.
Gaining internal buy-in is crucial. Many family offices involve multiple generations in decision-making. Emerging managers need to give LPs the right language to explain their fund to decision-makers within the family office.
Biggest Mistakes Emerging Managers Make
Focusing too much on logos and co-investors rather than their unique investment edge.
Failing to craft a compelling personal narrative that explains why they are the right person to execute their strategy.
Pitching too aggressively without building trust first.
Key Takeaways for Emerging Managers & LPs
Break through the noise with strong introductions. Warm referrals from founders, GPs, or LPs significantly increase your chances of securing LP interest.
Family offices evaluate fund managers differently. Personal relationships and conversations matter more than traditional pitch decks and performance metrics.
Your fund strategy should align with your unique skills. Whether you take a high-volume or concentrated approach, your background and personality should support your investment thesis.
Transparency and long-form content can help build trust. Benedikt predicts that thoughtful, well-written content will play a bigger role in LP-GP relationships, replacing broad, impersonal outreach strategies.
Final Thoughts & Where to Learn More
Benedikt Langer’s insights offer a fresh perspective on the LP-GP dynamic, showing that fundraising is about much more than numbers—it’s about relationships, trust, and alignment. His work with Embracing Emergence is helping to bring more transparency and community-building into the venture space, offering a roadmap for emerging managers who want to stand out.
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Chapters:
Welcome & Guest Introduction (00:01 – 02:09)
The Journey from Germany to Venture Capital (02:10 – 03:03)
The Story Behind Embracing Emergence (03:04 – 06:05)
How Family Offices Approach Wealth Strategy (06:06 – 07:17)
The Biggest Challenges for Emerging Fund Managers (07:18 – 09:42)
Building LP Trust & The Power of Network Signals (09:43 – 12:18)
Why Family Offices Struggle to Get into Top Startup Deals (12:19 – 15:42)
Breaking Through the Noise as an Emerging Manager (15:43 – 18:25)
The Role of Peer Introductions in LP-GP Relationships (18:26 – 22:39)
Family Offices vs. Institutional LPs: Key Differences (22:40 – 26:28)
How LPs Identify Top-Tier Emerging Managers (26:29 – 29:41)
Due Diligence & Balancing Conviction vs. Overanalysis (29:42 – 33:36)
Concentrated vs. High-Volume VC Strategies (33:37 – 38:58)
Why Family Offices Prefer Funds Over Direct Startup Investments (38:59 – 41:56)
Transparency in Venture Capital & Knowledge Sharing (41:57 – 46:28)
The Future of LP-GP Relationships in Venture (46:29 – 49:04)
Rapid Fire: Benedikt’s Insights & Advice (49:05 – 51:08)
Final Takeaways & Where to Connect (51:09 – 51:38)
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