Why Emerging VCs Need a Brand

It seems like everyone is becoming a Venture Capitalist. With everyone from influencers to industry veterans flocking to VC, the rise of emerging investors presents fierce competition to access the best deals and LPs.

Unlike established VC funds, syndicate leads and emerging managers can’t necessarily compete by writing the largest checks, offering an expansive network, or providing comprehensive portfolio support. So how are new investors expected to compete for capital and deals?

Some of the smartest managers have decided to invest in brand building in order to stand out from the crowd.

From building an engaged following on Twitter to publishing a newsletter to writing thought leadership pieces for traditional media outlets, brand-building activities allow investors to distinguish themselves. A strong brand offers social proof, establishes you as an expert, and puts your name top of mind for founders and other VCs. As capital is increasingly commoditized, it is more important than ever to build a brand alongside a portfolio.

Raising Capital

Having a strong brand attracts capital. This is particularly relevant with the rise in popularity of 506(c) funds. Rule 506(c) allows “general solicitation,” which means that a VC can publicly market their fundraising efforts through channels like social media. Over the past few years 506(c) has become more popular. There have been a number of examples of emerging VCs who have raised significant capital through platforms like Twitter. Mac Conwell claims to have raised “most of his [$10 million] fund off of Twitter.” And perhaps even more impressive, Minal Hasan raised $25 million for her second fund based on cold inbound on Twitter.

As you start to build your LP network, you’re competing for investor attention as well as dollars. Building trust and truly owning the relationship with your LPs can be a huge competitive advantage. This is why Sydecar has chosen to keep our customers’ deals and syndicates private, rather than creating a marketplace that draws your investors away to other opportunities.

Winning Deals

Building a brand around your investment thesis, and sharing details of that thesis through public channels, will increase your inbound deal flow. You’ll become the first investor others think of when meeting a company that matches your thesis. This increases both the quantity and quality of your deal flow. A strong brand will also help to secure allocation in the most competitive deals as founders will have an understanding of the value you bring.

Some investors create incentives around helping them with deals. Sahil Lavigna, an entrepreneur and investor with over 260k Twitter followers, created a scout program that incentivizes members of his network to share deal flow and investment memos that support the due diligence process. Julia Lipton, who made a name for herself in the crypto/venture ecosystem, parlayed her engaged Twitter following and newsletter subscribers into a “bounty board” which she uses to crowdsource help on tasks like deal sourcing, due diligence, and content creation.

Supporting Founders

Your brand immediately demonstrates how you support your portfolio founders. In positioning yourself as an expert in an area, such as growth, product, or fundraising, your founders know they can turn to you for resources and connections on that topic. They can also ask you to utilize your reach for further advice. Lolita Taub, a VC who recently launched her own fund, frequently tweets questions on behalf of founders to crowdsource advice, creating a concise resource for founders to turn to.

How to Build your brand

How can emerging VCs start building their brand? The lowest barrier to entry is social media. Experiment with the LinkedIn, Twitter, or even TikTok content to find where you can shine. As you engage with others, you may find podcasts, newsletters, events, or blogs are valuable for building your brand. Here are some low-cost, high-value brand building activities that new investors can focus on:

Identify your voice and who you want to connect with
Use your areas of expertise to create educational content
Launch a newsletter for LPs to demonstrate your investment thesis and portfolio wins
Ask questions or run polls on Twitter to get a better understanding of your audience
Personify your brand by including pictures of yourself or telling stories in investor updates
“Build in public” by using social media to share updates on your fundraising journey
Host networking events in collaboration with other emerging VCs
Record conversations you have with founders, LPs, or investors and turn them into a podcast

If you are looking for some inspiration, we suggest that you check out:

Michael Friedman (Reflect Ventures)

It seems like everyone is becoming a Venture Capitalist. With everyone from influencers to industry veterans flocking to VC, the rise of emerging investors presents fierce competition to access the best deals and LPs.

Unlike established VC funds, syndicate leads and emerging managers can’t necessarily compete by writing the largest checks, offering an expansive network, or providing comprehensive portfolio support. So how are new investors expected to compete for capital and deals?

Some of the smartest managers have decided to invest in brand building in order to stand out from the crowd.

From building an engaged following on Twitter to publishing a newsletter to writing thought leadership pieces for traditional media outlets, brand-building activities allow investors to distinguish themselves. A strong brand offers social proof, establishes you as an expert, and puts your name top of mind for founders and other VCs. As capital is increasingly commoditized, it is more important than ever to build a brand alongside a portfolio.

Raising Capital

Having a strong brand attracts capital. This is particularly relevant with the rise in popularity of 506(c) funds. Rule 506(c) allows “general solicitation,” which means that a VC can publicly market their fundraising efforts through channels like social media. Over the past few years 506(c) has become more popular. There have been a number of examples of emerging VCs who have raised significant capital through platforms like Twitter. Mac Conwell claims to have raised “most of his [$10 million] fund off of Twitter.” And perhaps even more impressive, Minal Hasan raised $25 million for her second fund based on cold inbound on Twitter.

As you start to build your LP network, you’re competing for investor attention as well as dollars. Building trust and truly owning the relationship with your LPs can be a huge competitive advantage. This is why Sydecar has chosen to keep our customers’ deals and syndicates private, rather than creating a marketplace that draws your investors away to other opportunities.

Winning Deals

Building a brand around your investment thesis, and sharing details of that thesis through public channels, will increase your inbound deal flow. You’ll become the first investor others think of when meeting a company that matches your thesis. This increases both the quantity and quality of your deal flow. A strong brand will also help to secure allocation in the most competitive deals as founders will have an understanding of the value you bring.

Some investors create incentives around helping them with deals. Sahil Lavigna, an entrepreneur and investor with over 260k Twitter followers, created a scout program that incentivizes members of his network to share deal flow and investment memos that support the due diligence process. Julia Lipton, who made a name for herself in the crypto/venture ecosystem, parlayed her engaged Twitter following and newsletter subscribers into a “bounty board” which she uses to crowdsource help on tasks like deal sourcing, due diligence, and content creation.

Supporting Founders

Your brand immediately demonstrates how you support your portfolio founders. In positioning yourself as an expert in an area, such as growth, product, or fundraising, your founders know they can turn to you for resources and connections on that topic. They can also ask you to utilize your reach for further advice. Lolita Taub, a VC who recently launched her own fund, frequently tweets questions on behalf of founders to crowdsource advice, creating a concise resource for founders to turn to.

How to Build your brand

How can emerging VCs start building their brand? The lowest barrier to entry is social media. Experiment with the LinkedIn, Twitter, or even TikTok content to find where you can shine. As you engage with others, you may find podcasts, newsletters, events, or blogs are valuable for building your brand. Here are some low-cost, high-value brand building activities that new investors can focus on:

Identify your voice and who you want to connect with
Use your areas of expertise to create educational content
Launch a newsletter for LPs to demonstrate your investment thesis and portfolio wins
Ask questions or run polls on Twitter to get a better understanding of your audience
Personify your brand by including pictures of yourself or telling stories in investor updates
“Build in public” by using social media to share updates on your fundraising journey
Host networking events in collaboration with other emerging VCs
Record conversations you have with founders, LPs, or investors and turn them into a podcast

If you are looking for some inspiration, we suggest that you check out:

Michael Friedman (Reflect Ventures)

It seems like everyone is becoming a Venture Capitalist. With everyone from influencers to industry veterans flocking to VC, the rise of emerging investors presents fierce competition to access the best deals and LPs.

Unlike established VC funds, syndicate leads and emerging managers can’t necessarily compete by writing the largest checks, offering an expansive network, or providing comprehensive portfolio support. So how are new investors expected to compete for capital and deals?

Some of the smartest managers have decided to invest in brand building in order to stand out from the crowd.

From building an engaged following on Twitter to publishing a newsletter to writing thought leadership pieces for traditional media outlets, brand-building activities allow investors to distinguish themselves. A strong brand offers social proof, establishes you as an expert, and puts your name top of mind for founders and other VCs. As capital is increasingly commoditized, it is more important than ever to build a brand alongside a portfolio.

Raising Capital

Having a strong brand attracts capital. This is particularly relevant with the rise in popularity of 506(c) funds. Rule 506(c) allows “general solicitation,” which means that a VC can publicly market their fundraising efforts through channels like social media. Over the past few years 506(c) has become more popular. There have been a number of examples of emerging VCs who have raised significant capital through platforms like Twitter. Mac Conwell claims to have raised “most of his [$10 million] fund off of Twitter.” And perhaps even more impressive, Minal Hasan raised $25 million for her second fund based on cold inbound on Twitter.

As you start to build your LP network, you’re competing for investor attention as well as dollars. Building trust and truly owning the relationship with your LPs can be a huge competitive advantage. This is why Sydecar has chosen to keep our customers’ deals and syndicates private, rather than creating a marketplace that draws your investors away to other opportunities.

Winning Deals

Building a brand around your investment thesis, and sharing details of that thesis through public channels, will increase your inbound deal flow. You’ll become the first investor others think of when meeting a company that matches your thesis. This increases both the quantity and quality of your deal flow. A strong brand will also help to secure allocation in the most competitive deals as founders will have an understanding of the value you bring.

Some investors create incentives around helping them with deals. Sahil Lavigna, an entrepreneur and investor with over 260k Twitter followers, created a scout program that incentivizes members of his network to share deal flow and investment memos that support the due diligence process. Julia Lipton, who made a name for herself in the crypto/venture ecosystem, parlayed her engaged Twitter following and newsletter subscribers into a “bounty board” which she uses to crowdsource help on tasks like deal sourcing, due diligence, and content creation.

Supporting Founders

Your brand immediately demonstrates how you support your portfolio founders. In positioning yourself as an expert in an area, such as growth, product, or fundraising, your founders know they can turn to you for resources and connections on that topic. They can also ask you to utilize your reach for further advice. Lolita Taub, a VC who recently launched her own fund, frequently tweets questions on behalf of founders to crowdsource advice, creating a concise resource for founders to turn to.

How to Build your brand

How can emerging VCs start building their brand? The lowest barrier to entry is social media. Experiment with the LinkedIn, Twitter, or even TikTok content to find where you can shine. As you engage with others, you may find podcasts, newsletters, events, or blogs are valuable for building your brand. Here are some low-cost, high-value brand building activities that new investors can focus on:

Identify your voice and who you want to connect with
Use your areas of expertise to create educational content
Launch a newsletter for LPs to demonstrate your investment thesis and portfolio wins
Ask questions or run polls on Twitter to get a better understanding of your audience
Personify your brand by including pictures of yourself or telling stories in investor updates
“Build in public” by using social media to share updates on your fundraising journey
Host networking events in collaboration with other emerging VCs
Record conversations you have with founders, LPs, or investors and turn them into a podcast

If you are looking for some inspiration, we suggest that you check out:

Michael Friedman (Reflect Ventures)