How are emerging managers selected to present at RAISE Global Summit? In this Q&A, Joanna Drake walks us through the process—from the initial invitation to Selection Committee Top Picks.
Q: First off, how do GPs get on the RAISE General Partner list?
A: Ben Black and his colleagues at Akkadian are constantly scouring the universe for new emerging funds that we haven’t met before, leveraging published industry lists and tapping informal GP and LP referrals. In addition, every year, we expand our sourcing partnerships via the networks of our RAISE Global Summit Producers, Selection Committee members, and Sponsors.
We want RAISE to be the marketplace for intriguing new fund entrepreneurs with a different investment lens and coming from all corners. Last year, we were pleased that among the 30 firms selected for pitch slots, we included emerging managers from Europe, Israel, and Africa.
We are always working to broaden geographic reach outside the Silicon Valley bubble, and in this spirit, officially relaunched our brand from RAISE in the Presidio to RAISE Global Summit this spring.
Q: How does RAISE decide who is an emerging fund manager, and how many GPs are invited to the Summit each year?
A: Initial eligibility to be considered for a RAISE GP invitation is based on our definition of “emerging manager”—entrepreneurial venture partnerships that have Assets Under Management (AUM) less than $200M or growth-stage investors working on Fund I or II.
For the first four years, invites to RAISE were constrained by physical venue space, and we were limited to 150 GP slots each year. We worked with RAISE Event Producers and Sponsors to prioritize their invite allocations based on their interest and enthusiasm for entrepreneurial managers. Differentiated investment theses, geographic location, and diversity of partnership profile tend to weigh into decisions behind invite allocations.
One of the benefits of the virtual format of the 2020 and 2021 Summits is that we can broaden our GP and LP attendance, in terms of both volume and geography. Last year, we welcomed 212 emerging managers and 294 LPs.
Q: Is there a minimum fund size to join RAISE?
A: With first-time funds, we confirm demonstrated traction in initial fundraising efforts to ensure fund viability. For example, if their target is a $25 million Fund I, do they have at least $10 million closed? Ultimately, many first-time funds don’t get off the ground.
One of our responsibilities as a curating community is to ensure that those fund managers we expose to Limited Partners will be in business in the years to come and are a worthy relationship to build.
Q: Once GPs have registered, how do they apply for consideration by the Selection Committee for a Summit Pitch Slot?
A: Applying GPs complete a firm profile which gets published in the private RAISE LP Portal, accessible only to LPs attending the RAISE Summit. It is important that they complete the fund performance data section of their profile and submit a fundraising deck.
There is also the option to add supplemental materials for the RAISE Presentation Selection Committee. Supplemental materials typically include traditional data room materials such as bios, quarterly reports, or individual track records. We always recommend more information rather than less to help Selection Committee members have as complete a profile on each applicant as possible.
Q: How does the Selection Committee determine the Top GPs?
A: We have carefully honed the GP ranking criteria since we launched RAISE. The 2021 Selection Committee will assess applicants using the following criteria:
Based on data submitted from GP survey responses and submitted materials, each applicant will be scored on a 100-point scale. The Selection Committee may allocate extra points to firms who have applied in the past but were not selected. As a community, we want to reward persistence.
Interested in attending the RAISE Global Summit on October 19 & 20? Request an invitation here.
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Disclaimer
The Tipping Point Series (“Tipping Point”) is a collection of interviews with fund managers who (a) have previously raised a venture capital fund and (b) are providing advice and insights into the formation and management of venture capital funds (the “Presentations”). Tipping Point is not an offer to sell or a solicitation of an offer to buy any security issued by any venture capital fund, including without limitation, any venture capital fund managed by Tipping Point’s speakers, presenters, or producers.
The Presentations do not (a) provide investment advice with respect to any security or (b) make any claim as to the past, current, or future performance of any security or venture capital fund, and Tipping Point expressly disclaims the use of the Presentations for such purposes. The Presentations are not intended to constitute legal, tax, accounting, or other advice or an investment recommendation. Prospective fund managers should consult their own advisors about such matters with regard to their venture capital funds. Raising a venture capital fund involves significant risk of loss of income and capital, including loss of the full amount raised and invested, which may occur as a result of identified or unidentified risks.
Tipping Point is produced by Raise Conferences, LLC (“Raise”). Raise is a private invite-only venture capital conference, which provides a forum for venture capital funds to network with and present to potential venture capital investors. Although Raise produces Tipping Point, the Presentations are independent of Raise’s conference and do not provide any forum for the Tipping Point speakers, presenters, or producers to solicit the sale of any securities.
