A lot of new Micro-VC firms have been formed over the past couple of years. A lot. For some, it may seem like anyone that has a good story and a PowerPoint can raise a fund. Having lived through the process vicariously through dozens of new managers, I can tell you that raising institutional capital can be very tough for first time managers.   And in many ways, despite the bull market we’re in, it’s much tougher to raise institutional capital today than it was 3-4 years ago. Some institutional LP’s have placed their bets within the Micro-VC sector and are in wait and see mode while others struggle to differentiate between the constant inflow of new manager slide decks. To get into the heads of institutional LP’s around Micro-VC, I took some time over the past few weeks talking to several about how they analyze new (and often unproven) venture managers. For ease of readability, I’m narrating the collective thoughts of the institutional LP’s I talked to in the first person. Motivation One of the things I’m going to be very interested in is understanding what inspired you to start your own firm/fund. As an institutional investor, I’m looking to invest in your franchise and not a single fund. As such, I want to know that you have been thoughtful around why this is the direction you’re taking your career. In a bull market like today where the velocity of capital is high, it’s sometimes difficult for us to differentiate between managers that have true conviction to build a great long-term franchise versus part time hobbyists who are cashing in on the current wave. Make sure it’s a question that you ask yourself before pitching. On what is important to us? 1/Founder endorsements – Assuming I get this far in my diligence, I want to hear that the entrepreneurs you’ve backed are your biggest cheerleaders. While I want founders to say great things about your character and acumen, I’d really like to hear tangible examples. It could be how an entrepreneur went to bat to protect your pro-rata or how you were their first call when they started a new company. 2/Hustle factor – Pure and simple, Micro-VC investors need to convince me that they have the same hustle as the entrepreneurs they invest in. I want to feel that you’re going to run through walls to make the firm and all of its constituents successful.   With the level of competition for the best entrepreneurs, we’re going to lean heavily to those firms whose core philosophy is built around outworking the competition and being resourceful. 3/Differentiation – The most interesting funds to us are ones those...

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