LP Lead Qualification

LP lead qualification system that aligns potential investors with VC thesis and fundraising strategy.

Introduction to LP Qualification

LP Lead Qualification is a simple scoring system, designed to streamline the process of identifying and engaging with potential Limited Partners (LPs) who align closely with venture capital firm's investment thesis. This scoring system evaluates contacts across several dimensions, including venture investment experience, role experience, tech startup experience, source of wealth, geographical focus, and understanding of firm's specifics. By assigning a percentage score to each criterion, leads can be prioritized based on their relevance and potential interest in becoming LPs, ensuring a more targeted and efficient outreach.

I used the percentage of match with each criterion outlined for Fund 1 of the VC, which has a specific tech focus in the wide APAC region.

LP Lead Qualification Criteria

1. Venture Investment Overall Experience

  • Yes, in early stage: 100%

  • Yes, in late stage: 75%

  • Acquirer, bought stocks of tech companies: 50%

  • No, but PE of tech companies: 50%

  • No, but other investments: 25%

  • No investment experience at all: 0%

2. Venture Investment Role Experience

  • Invested money as LP: 100%

  • Invested time and/or money as MP/GP/VP/Angel: 75%

  • Invested time as Consultant, advisor, mentor, vendor: 50%

  • Invested motivation as exited employee with options: 25%

  • Other options: 0%

3. Tech Startup Experience

  • Founder of funded late stage/exited startup: 100%

  • Founder of funded early stage or failed startup: 75%

  • Non-founding VP/C-level of tech startup: 75%

  • Senior/head level: 50%

  • Non-tech startups or other entrepreneurship: 50%

  • Non-tech startup or other business C-level: 25%

  • Other options: 0%

4. Source of Wealth

  • HNWI, After business exit as (non-)founder: 100%

  • HNWI, From Investments: 100%

  • HNWI, High salary or fees, bonuses: 75%

  • VC, FoF: 75%

  • FO, PE, Trust: 50%

  • Corporates: 50%

  • HNWI, Rich Family: 25%

  • Institutions: 25% (not for fund 1)

  • Other: 0%

5. Location (SEA+ANZ)

  • Investing, living, doing business in SG, US, ANZ: 100%

  • Investing, living, doing business in SEA (except SG): 75%

  • Frequent traveller to SG, ANZ: 50%

  • Frequent traveller to SEA (except SG): 25%

  • Other: 0%

6. Understanding of Firm's Specifics

  • Did business around the firm's focus area: 100%

  • Software development background: 75%

  • IT background: 50%

  • STEM background: 25%

  • Other: 0%

7. Compliance KYC/AML

  • Fully Compliant with Global Standards: 100%

  • High Compliance, Requires Minor Additional Verification: 75%

  • Moderate Compliance, Subject to Detailed Review: 50%

  • Low Compliance, Requires Extensive Due Diligence: 25%

  • Non-Compliant, Participation Restrictions Apply: 0%

Disclaimer

Please note that the criteria and percentages provided here serve as an example framework to illustrate how contacts might be scored. It is essential for each venture capital firm to customize this system according to its specific investment thesis, geographic focus, and strategic priorities. The weights assigned to each criterion should also be tailored to reflect the firm's unique values and objectives. This tool is intended as a starting point and should be adapted to fit the nuanced needs of your VC firm's approach to building and maintaining LP relationships.

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