Build Mode: Capital is a commodity (but your investor relationships aren’t) - Equity Recap

Podcast: Equity

Published: 2026-01-21

Duration: 45 min

Summary

In this episode, venture capitalists Ross Fabini and Leslie Feinzig discuss the intricacies of building investor relationships and the challenges of raising a first fund. They emphasize the importance of founder market fit for both entrepreneurs and investors and the necessity of having a unique perspective in the venture landscape.

What Happened

Host Isabel Johansson welcomes Ross Fabini of XYZ Ventures and Leslie Feinzig of Graham & Walker Ventures to the podcast. They delve into their personal experiences of raising their first funds, highlighting the stark differences in their journeys. Leslie shares her unconventional entry into venture capital, stemming from her background of helping female founders, while Ross reflects on the challenges he faced in establishing a unique identity in the venture space. He recounts the horror of raising his first fund and stresses the importance of qualification in the investor relationship process.

The conversation shifts to the evolution of venture capital since Leslie and Ross began their careers. Leslie notes that her approach was centered around building relationships and understanding the needs of founders, which led her to raise her first fund during the pandemic while balancing personal challenges. Ross, on the other hand, emphasizes the need for a distinctive viewpoint when approaching potential investors. Both emphasize that successful fundraising is not just about the money but about the enduring relationships cultivated over time, suggesting that the best investor connections often begin years before a capital need arises.

Key Insights

Key Questions Answered

What challenges do first-time fundraisers face?

Ross Fabini describes raising his first fund as a 'horror show,' emphasizing that the process is genuinely difficult. He mentions that fundraising involves a lot of hard work, including finding and engaging potential investors. The unique voice and perspective that a fund manager brings can significantly influence the success of their fundraising efforts.

How did Leslie Feinzig transition into venture capital?

Leslie Feinzig's entry into venture capital came from her background in supporting female founders. After running a community that helped women raise venture capital, she realized that investing in these companies could be a sustainable career choice for her. This realization occurred after she saw her logo featured on an investor's deal flow slide, prompting her to explore the venture space.

What is the significance of qualification in fundraising?

Ross Fabini emphasizes the importance of qualification in the fundraising process, stating that it's crucial to focus on investors who genuinely want what you are offering. He notes that he learned to quickly identify which potential limited partners (LPs) were likely to invest, thus saving time and effort during the fundraising process.

What strategies did Leslie employ to raise her first fund?

Leslie raised her first fund primarily through individual investors, as she did not have an established track record in venture capital. She leveraged her experience in running a community for female founders and raised most of her capital during the pandemic over Zoom, demonstrating adaptability and resilience in her approach.

How has the venture capital landscape changed in recent years?

Both Ross and Leslie acknowledge that the venture capital landscape has undergone significant changes since they began investing. Leslie notes that her strategy must adapt to the evolving market conditions, while Ross discusses the need for investors to understand their role in the ecosystem to build firms that can withstand the cycles of capital flow.