To build immediate trust, Gryphon Investors kicks off portfolio company relationships with a "touchy-feely" session. Using personality assessments, the most senior Gryphon partner must share their own development plans and weaknesses, disarming the new management team and setting a tone of vulnerability and authenticity.

To achieve superior returns, Limited Partners should abandon a passive role and adopt a General Partner's proactive mindset. This means actively sourcing opportunities, building a network, and cultivating deep relationships, rather than just waiting for managers to pitch them.

The strength of a GP-LP relationship isn't measured by co-invest rights or fee breaks. It's demonstrated when a GP offers valuable advice or connections that improve the LP's overall portfolio, even when there's no direct financial gain for the GP. This uncompensated help is the hallmark of true partnership.

Most managers default to using 1-on-1s as pipeline reviews. This is a mistake. Dedicate separate meetings for deals (Deal Reviews) and protect the 1-on-1 as a "sacred space" for building connection, discussing personal and professional development, and strengthening the manager-rep relationship.

Instead of a formal roadshow, founders should let future lead investors invest small amounts months in advance. Providing them with regular updates and hitting stated milestones builds immense trust, making the actual fundraise a quick, targeted process that optimizes for partner over price.

An LP with prior experience as a GP has a distinct advantage in accessing top-tier funds. They understand what GPs value in an LP—responsiveness, transparency, long-term thinking, and trust. By acting as "the LP they wanted to work with," they build deeper relationships and gain an edge over LPs who have never been on the other side of the table.

Swell VC's Rusty Ralston shares that the most insightful LPs probe a GP's character, values, and personal history. For multi-decade investment relationships, understanding the person is foundational to establishing the trust, character, and integrity required for long-term success, surpassing the importance of typical fund metrics.

It's easy for a General Partner (GP) to be a good partner when markets are strong and profitable. A GP's true character, integrity, and alignment with Limited Partners (LPs) are only tested when a downturn forces difficult conversations about shrinking profits and unmet expectations.

The most effective fundraising strategy isn't a rigid, time-boxed "process." Instead, elite founders build genuine relationships with target VCs over months. When it's time to raise, the groundwork is laid, turning the fundraise into a quick, casual commitment rather than a competitive, game-driven event.