This is part 4 of 10 of our 10 Years of Laconia Series.
When we raised Fund 1, it was fueled by the trust and camaraderie of friends and former colleagues. These were people who had seen David and me in action, knew our work ethic, and were willing to take a chance on us as we transitioned from angel investors to venture capitalists. For that, we will forever be grateful. But fast forward two years, and we were back in front of these same LPs, this time asking them to take another swing—not just because they trusted us personally, but because they believed in the vision we had for Laconia.
Fund 2 was the inflection point that meant we were all-in. By the time we began raising it, we had brought on Geri as our third partner and were ready to scale and grow a truly special venture firm. But there was a big hurdle: Fund 1 was still in its early days, and venture funds take time to show results. While we had a few markups in Fund 1, it wasn’t enough to point to a proven track record. Asking Fund 1 LPs to reinvest without fully realized results was daunting.
It’s worth noting that we returned Fund 1’s initial capital within those first four years (and have since returned more). This performance underscores the strength of the companies we backed and the value we’ve created for investors, even in the early stages of building Laconia.
To their credit, 85% of our Fund 1 LPs came back in for Fund 2. That kind of loyalty and trust is rare and speaks volumes about the caliber of people who believed in us from the beginning. But even with that vote of confidence, we needed to expand our LP base to build momentum. And that’s where the real challenge began.
David and I are not natural self-promoters. The fundraising process for Fund 2 required us to stretch beyond our comfort zones. Networking became our daily reality. We leaned heavily on referrals and spent countless hours explaining our vision and strategy to potential LPs who had no prior history with us. This wasn’t just about pitching a fund; it was about selling the long-term vision for Laconia and the value we could bring as a concentrated, boutique venture firm focused on pre-seed and seed-stage B2B companies.
Through grit, determination, and a lot of late nights, we secured $13 million for Fund 2. By some measures, that’s not a large fund. But for us, it was significant. We’re a concentrated firm by design, intentionally working closely with fewer companies. Fund 2 allowed us to double down on our thesis and continue building something unique in the venture ecosystem.
Raising Fund 2 taught us that being a good investor is only part of the job. Building a venture firm requires a strong LP pipeline, constant relationship-building, and the ability to communicate your vision in a way that resonates with others. It’s not easy, and it’s not natural for everyone. But for David, Geri, and me, it became an essential part of growing Laconia into the firm it is today and will be as we enter the next decade.
Looking back, Fund 2 was harder than Fund 1 in every way. But the challenges we faced during that time laid the foundation for everything that followed. And for that, we’re deeply grateful.