June 10, 2025
Carta’s Fund Performance Dinner in NYC last week provided an excellent opportunity to connect with leading VCs while gaining valuable insights from Peter Walker.
The event highlighted critical areas where venture capital firms can enhance their relationships with limited partners.
Three Critical Takeaways
Based on consistent feedback from LPs, three key themes emerged that every GP should prioritize:
LPs Are Craving Improved Annual General Meetings
Limited partners want more substantive content from their Annual General Meetings.
Rather than broad, surface-level updates, LPs prefer when managers go deep into one portfolio company and demonstrate the actual work being done, in addition to providing shorter updates across the board.
This approach gives LPs better insight into the GP’s value-add and decision-making process.
Liquidity Pathways Are Crucial
Showing a clear path to liquidity has become crucial for managers, especially emerging ones.
LPs need to understand not just the potential of portfolio companies, but realistic timelines and strategies for realizing returns.
This transparency builds confidence and demonstrates sophisticated portfolio management.
Bridge Rounds Rarely Make Sense
According to Carta data, bridge rounds rarely make sense as an investment strategy. Instead, GPs should focus their efforts on follow-on investing over bridge rounds.
This data-driven insight challenges conventional wisdom and suggests a more disciplined approach to continued investment in existing portfolio companies.
Follow me on LinkedIn for more content like this!