In a venture capital landscape teeming with new players from various backgrounds, emerging VCs face a challenge in distinguishing themselves. Lacking the resources of established funds, they can't always compete with large investments or extensive networks. Recognizing this, savvy new investors are turning to brand building as a crucial strategy.

A strong brand helps in various ways: it provides social proof, establishes credibility as an expert, and keeps a VC's name at the forefront for founders and fellow investors. As capital is increasingly commoditized, building a brand alongside a portfolio is more important than ever.

Raising Capital 

Brand building extends beyond traditional methods. Engaging on Twitter, publishing newsletters, and contributing thought leadership in media are effective ways to stand out. These efforts not only distinguish an investor but also attract capital, especially with the popularity of 506(c) funds which allow public marketing of fundraising. 

As you start to build your LP network, you’re competing for investor attention as well as dollars. Building trust and owning the relationship with your LPs can be a huge competitive advantage. This is why Sydecar has chosen to make 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. 

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. 

Build your brand 

How can emerging VCs start building their brand? The lowest barrier to entry is social media. Experiment with 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 

• Develop an engaging, informative YouTube channel to visually showcase your insights and investment philosophy

• Offer mentorship or advisory sessions to early-stage startups, building relationships and demonstrating expertise

The surge of new entrants into venture capital has intensified the race for top deals and LPs, challenging newcomers to carve out their niche. By harnessing the power of social media, thought leadership, and targeted content, savvy managers are establishing themselves as experts and reliable partners in the eyes of founders and fellow VCs.  This brand-building journey is not just about visibility; it's an essential strategy for success in today's VC world.