A strong Limited Partner (LP) network is essential for any syndicate’s success. LPs provide the capital that drives investment opportunities, making them the backbone of a successful syndicate. However, building and maintaining a robust LP network requires more than just presenting deals—it calls for trust, transparency, and well-defined strategies.
Jed Ng, founder of AngelSchool.vc and an experienced Angel Syndicate Lead who has backed two Unicorns, shares his top five strategies for cultivating and expanding an LP network.
Top 5 Strategies to Build Your LP Network
1. Start with Your Warm Network
Leverage your existing network to build initial momentum. Jed Ng underscores the importance of starting with people who already know and trust you: “Start with your warm network,” he advises.
Your warm network—those already familiar with you—can serve as the foundation for your LP base, as they are more likely to understand and support your vision.
2. Build Relationships Step-by-Step
Building a solid LP network is a gradual process of cultivating strong, trust-based relationships. “Relationships and trust are key,” he emphasises.
Rather than rushing, take the time to engage directly with potential LPs and foster meaningful connections. Trust is the cornerstone of these relationships, and establishing it through consistent, authentic interactions will help you create a loyal and supportive LP network.
3. Develop a Clear and Compelling Investment Thesis
A well-defined investment thesis is crucial for attracting LPs who align with your vision and strategy. As Jed recommends, “Start with your investment thesis and have clarity on that for yourself.”
Your thesis should clearly outline your investment focus, market opportunities, and the reasoning behind your approach. A clear, compelling thesis will attract LPs who share your goals and are likelier to commit to your syndicate for the long term.
4. Use Cost-Effective Tools and Platforms
Managing your LP network doesn’t require a hefty price tag. “Lightweight tech and processes can solve the puzzle,” Jed reassures.
You can maximise your reach without breaking the bank using affordable digital tools such as email marketing platforms, social media, and virtual event software. These tools streamline communication, making engaging with potential LPs and efficiently managing your network easier.
5. Be Transparent and Provide Regular Updates
“Transparency and regular communication are essential,” Jed stresses.
Maintaining trust with your LPs requires keeping them informed through consistent updates on market conditions, investment performance, and any challenges. Detailed due diligence and open communication will reassure LPs that their investments are in capable hands, fostering long-term trust and engagement.
“You must build trust from day one, keep LPs informed, and provide detailed due diligence.”
A Combination of Networking, Clarity, and Trust Building
Uncover more actionable insights from the chat on Building Blocks of a Syndicate.
Building a successful LP network involves leveraging your existing connections, cultivating relationships, and being transparent with your LPs. As Jed Ng suggests, begin by engaging your warm network, develop a compelling investment thesis, and utilise affordable tools to manage your outreach. Most importantly, transparency and communication should be maintained to foster trust. To learn more about the process, consider watching the full webinar. Uncover additional expert insights on syndicate growth and LP networking by viewing the complete discussion here.
