Interacting with LPs - Insights from Kate Beardsley of Hannah Grey

There’s a lot to consider when starting a venture firm: timing, experience with other firms that can support your journey, and a mission that differentiates you from other investment firms.

These are all factors that Kate Beardsley and her partner Jessica Peltz-Zatulove had to consider when they made plans to kickstart their venture fund, Hannah Grey. But being women in a male-dominated industry and beginning their emerging manager journey during the pandemic, they had to think beyond the basics if they wanted to stand out.

Planning was critical. Kate says that at the height of the pandemic, she and Jessica took the time to do their research, learn from mentors, and craft a story that could be clear and convincing to LPs when those discussions were happening on Zoom.

Even their firm’s name is part of the firm’s greater story, taking inspiration from Kate’s and Jessica’s daughters.

“Immediately we knew that it was an emotional connection, which is really one of the keys to being memorable,” Kate says. “There's a story there, and it has meaning for us, and I think deeply keeps us centered on what's important and how we actually tie our importance to venture capital.”

In this episode of Fund Flow, Kate joins host Jon Finger to share what it took to start the firm and share insights from her emerging fund manager journey. She also talks about relationships with LPs — from first meeting to marriage — and diversifying the emerging manager ecosystem.

 

💡 Featured Guest 💡

Name: Kate Beardsley

What she does: Kate is a Founding Partner at Hannah Grey, a first check venture fund investing in customer-centric startup founders. Previously, she worked with Martha Stewart and later Huffington Post co-founder Kenneth Lerer. Kate founded the venture fund in 2021 with Jessica Peltz-Zatulove.

Organization: Hannah Grey 

Connect: LinkedIn | Twitter

 

🗝️ Key Points 🗝️

Top takeaways from this episode

★    When starting a firm, timing is everything. As you get more experienced, it becomes easier to identify the green lights that indicate when might be the right or wrong time to start an investment firm. The state of the market and your relationships with other LPs or previous firms you’ve worked with are all important to consider. 

★    Know your firm’s story. LPs are already reluctant to invest in newer firms. While having experience and a strong portfolio is important, a coherent and well-researched “story” about who your firm is and what you’ll do is an important asset.

★     Do your research and be ready. Relationships with LPs are like marriages: like any long-term relationship, a lot of work should be dedicated to that relationship before committing to marriage. So before even meeting with LPs, make sure you do plenty of research to make sure it will be the right fit for your firm. Being prepared will help you advance deals faster, and avoid relationships that aren’t the right fit. 

 

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