J Zac Stein

💡Emerging GP Fundraising Insight #8: Rolling Closes Keep You Moving Small funds can't always afford to sit still until the target is hit. Rolling closes let you start deploying earlier, build a track record, and show momentum to prospective LPs. One GP told me that for Fund I ($5M target), he took capital as it came, signed, wired, and got to work. It wasn't perfect, but it kept the lights on and the deals moving. Sometimes the "sign and wire as it comes" approach is the only way to get moving. Takeaway: Momentum is a fundraising asset and rolling closes can help you keep it. Has anyone here used rolling closes as a strategic advantage?

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Startups are unlocking capital with IRA funds. How? Alto’s Private Raise Portal (PRP) offers issuers a pipeline to raise directly from tax-advantaged retirement accounts. Rather than competing for limited VC funds or asking friends and family to break out their checkbooks (again), your early supporters can invest using a self-directed IRA through Alto. While you tap into a new source of capital, they experience a streamlined, tax-efficient way to put their money toward an emerging company, and founder, they believe in. Explore the PRP and starting raising with confidence in minutes: https://lnkd.in/eqBewbjM

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jensen called the idea that enterprise cos will rip+replace software 'illogical' and he's right. no one wants to vibe code their payroll - software is 8-10% of enterprise budgets & for most companies the compliance risk of rebuilding mission-critical systems far outweighs the software savings

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The role of a VC Talent Partner has changed. Matt Stephenson, Head of Tech Talent at BCV, shares with Nolan Church what it really takes to support founders in today’s market on the latest 10x Recruiting episode from Metaview: • The best recruiters in VC don’t just teach people how to fish—they recruit, close, and repeat. • When sourcing isn’t landing, the issue usually isn’t tooling. It’s trust. You have to earn the right to a candidate’s time. • And in this market, long-term relationships matter more than one-time experiences.

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I’ve spoken to over 2 dozen MDs at PE firms I can confidently say that the arb of figuring out how to implement Vertical AI at portfolio companies is very real right now It will fundamentally change underwriting for those who can do it predictably and unlock generational returns. Most are aware they need to act. Very few have.

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An emerging VC manager's fundraising lessons... the first two funds are a grind. Now, we’re on our third fund, it feels like we’re almost over the hump, but fundraising never gets easy for most of us. I want to congratulate the emerging VC firms presenting at this year’s RAISE Global conference. As former RAISE presenters, and (soon-to-graduate) emerging managers, we thought we’d share this LP Translator, a lighthearted guide to decoding what LPs really mean during the fundraising process. Fellow GPs, which ones did I miss? 👇 The LP Translator 📣 "Let’s stay in touch.” Translation: We’re not interested. “We want to see your track record develop.” Translation: Either we don't believe in your strategy, or we’re focused on managers with more buzz. “We’re not allocating to new managers right now.” Translation: We’re not allocating to you right now. "Show us your deals so we can get to know you.” Translation: We’d like free co-invests if you get something hot. “We need to see more DPI before we commit.” Translation: We don’t really understand VC, but we’re pretending to. “We’re fully allocated for this year; check in early next year.” Translation: Next year we’ll still be fully allocated (just not to you). “Call us before final close.”  Translation: I’m too polite to say no at this time, so I’m kicking the can down the road. “Your fund is too small.”  Translation: Okay, that one might actually be true (for some LPs). “We went through your data room and want to meet face-to-face.” Translation: We’re genuinely interested, keep going! “Can you send us your LPA for signature?” Translation: Let’s go! 🚀 -------------------------- Fundraising is a long game, longer than we ever expected. We're now seeing how LP relationships are built across several funds, not several months. If they’re investing time to learn about you and your strategy, that’s your best signal of real interest. #emergingmanager #venturecapital #LP #RAISEGLOBAL

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I spoke with Christien Louviere of BDE Capital about his journey from a $330mm exit to becoming an independent sponsor. Christien shared excellent insights for folks looking to partner with business owners, rather than buy sellers out completely. Below are a few of the topics we covered: - Why he moved from “zero-to-one” startups to a buy-then-build strategy - How Christien's background shaped a focus on growth vs. cost-cutting - Why 20–40% rolled equity is central to his deal structures—and how it builds trust with sellers - Using scenario analysis with AI tools to evaluate management teams and uncover hidden key-person risks - How to identify when a $3–5M EBITDA company truly has a middle management layer—or is still founder-reliant For anyone investing in or buying small businesses, Christien’s approach provides a fresh lens on growth, alignment, and deal structuring. 🎥 Watch the full interview here → https://lnkd.in/ekfkaiej 🎧 Listen on Spotify: https://lnkd.in/e86Agx6V

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The lines between VC, PE, and credit are blurring—and it's reshaping competition. In a recent virtual event, Carta's Ashley (Howard) Neville sat down with Molly O'Shea from Sourcery to break down one of the most significant shifts happening in private markets right now: venture, private equity, and credit funds are moving closer together. What specifically is changing? - Venture funds are adding structured capital and credit sleeves - Late-stage venture and growth equity pricing are overlapping - VC and PE firms are competing for the same companies There's been a big shift to private markets, with hedge funds also making the move. This competition is raising the watermark for what these funds can accomplish. A few years ago, hedge funds were trying to create crossover funds and enter venture—now the entire landscape is converging. If you're investing or operating in private markets, understanding these dynamics is essential. Watch the full event recording: https://lnkd.in/g3GP49UR #PrivateMarkets #VentureCapital #PrivateEquity #PrivateCredit #InvestmentTrends #FundStrategy

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The CTO role in PE is being completely redefined. I’ve been watching the CTO role in private equity get redefined in real time. Five years ago, my role didn’t exist at our company. Today, AI capability is part of the value creation plan. I’m the CTO at BRE Hotels & Resorts, a Blackstone portfolio company. We’re a hospitality real estate ownership platform — we don’t operate hotels. We own assets, invest in them, and allocate capital across a portfolio. The old model for tech leadership in PE portfolio companies: keep systems running. Manage vendors. Don’t break anything. The new model: CTO as value creation partner. Build capabilities that improve EBITDA, accelerate underwriting and asset strategy, and create decision advantages competitors can’t easily replicate. Here’s what changed: The board conversation used to be about IT spend. Now it’s about intelligence—decision velocity, performance drivers, and board-ready narrative that informs capital allocation with conviction. We’re building multi-agent AI systems where specialized agents generate KPIs, forecasts, variance explanations, and risk signals across the portfolio. Work that used to take days now happens continuously. This isn’t property-level AI. No chatbots. No smart thermostats. It’s enterprise intelligence at the ownership level—where strategy gets set and capital gets deployed. For PE firms thinking about technology leadership in their portfolios: 1. Hire CTOs who understand the business model — and can speak the language of returns. 2. Put technology at the value creation table from day one (not as a support function). 3. Measure technology like every other lever: by impact on outcomes. PE outperformance is becoming an intelligence game. Not dashboards—decision systems. The next decade of advantage won’t be won in spreadsheets. It will be won in systems that turn data into decisions—continuously, at scale. The question isn’t whether AI belongs in the value creation plan. It’s who owns it—and how fast it compounds across a hold period. The modern CTO in PE isn’t a technology leader. They’re a value creation leader, building a portfolio-wide repeatable playbook for intelligence. #PrivateEquity #AI #CTO #ValueCreation #HospitalityRealEstate #Leadership

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𝗡𝗮𝘃𝗶𝗴𝗮𝘁𝗶𝗻𝗴 𝗦𝘁𝗮𝗿𝘁𝘂𝗽 𝗢𝘄𝗻𝗲𝗿𝘀𝗵𝗶𝗽 Lucas J. Pols, GP at Pegasus, delivers critical wisdom for founders navigating the complex world of startup investment. He reveals that while ownership percentage isn't everything, board control is the real game-changer. Learn why strategic board composition matters more than pure equity stakes, and discover how founders can maintain their vision while bringing in vital outside investment. #Startup #VentureCapital #Founder

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One of the most misunderstood frameworks as it relates to the A-player, B-player, etc. framework - here's some ready to re-familiarize yourself https://lnkd.in/gMTT2p3T Only more experience people are A-players, right? Here is a summary - A Players (10-20%): High performers who exceed expectations and solve problems proactively - found at any level, including driven juniors who learn rapidly - B Players (70-80%): Reliable performers meeting expectations, forming organizational backbone - includes experienced staff, some with A-player potential - C Players (10%): Persistent underperformers requiring excessive oversight - not about inexperience but ongoing performance issues despite feedback Key differentiators: A players seek feedback (constantly), take risks, mentor others, and achieve goals resourcefully - traits that transcend seniority Talent implications: Invest in A players, develop B players, address C players decisively - junior A players often outperform senior B/C players. Whats critical to understand is how this relates to hiring - since the frameworks lends itself better to evaluating existing teams Here are some things to think about - A player does NOT mean senior- someone straight out college can be an A player - A track record of past performance and going above and beyond is a good indicator of future behavior and results - Time spent on C players is time poorly spent - over and over again this is the biggest mistake that managers and leaders make. The data tells you that it's not a good use of your time - spend time with the A and B players and get acceleration. Spend time with C players and get lower productivity How do you think about hiring and talent?

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Most people think private equity is just about funding. But if you work in partnerships, it’s so much more than that. Every PE firm in this chart backs a whole ecosystem of companies, often aligned by industry, GTM motion, and growth stage. That means one connection can lead to: • Co-sell opportunities across the portfolio • Easier exec buy-in • Faster integrations • Scaled partner playbooks The smartest partner pros are already building GTM motions that tap into PE-backed ecosystems. Not just one-off partners, clusters of them. Have you tapped into a PE-backed ecosystem before? Share how it shaped your GTM motion in the comments. Source: Private Equity International

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A few weeks back, I watched Maggie Hott, GTM leader at OpenAI, confidently navigate her first board meeting at Unify. Having worked with her through Emergence Capital's Operator in Residence (OIR) program, seeing her immediately contribute valuable insights made me think about how most board members receive virtually no training for this critical role. At Emergence, we've built our firm around developing board excellence. We grow all our partners from within and have established a culture of mentorship focused on board service. Junior investors aren't thrown into the deep end—we pair them with senior GPs to observe effective board dynamics firsthand. My initial experience was at DroneDeploy alongside my partner Kevin Spain, where I got great mentorship before taking on independent board responsibilities. We extend this methodology to our OIR program, where operators learn how to be effective board members. Based on my experience mentoring directors, here are the fundamental principles I share with first-timers for how board members can best support founders: 1. Reframe the purpose: Problem-solving, not reporting If your board meeting is primarily reporting, you're wasting your management team's time. Information sharing should happen asynchronously, with board members engaging with materials before the meeting. This enables the live session to leverage collective intelligence on critical challenges. This rarely happens because many directors overextend themselves across too many boards—another reason we maintain a disciplined investment pace. 2. Master the Socratic approach The most valuable contribution often comes through thoughtful questions rather than declarative statements. Your objective is to enhance the decision-making capability of management. I enter each meeting with 1-3 specific areas where I know I can add value, focusing questions on these topics. 3. Follow-through separates professionals from amateurs Diligently document your commitments, establish clear action items, and execute them. It's crazy how just doing this proactively makes a board member stand out. 4. Understand your unique contribution to the board ecosystem A high-functioning board resembles a great basketball team—you need complementary skills, not redundant ones. In every meeting, I stay conscious of my distinct value relative to others in the room, whether that's SaaS expertise, AI knowledge, or a particular relationship dynamic with the CEO. I calibrate my role based on needs—sometimes assertively addressing areas where others have less experience, other times asking probing questions where fellow members have deeper expertise. -- To my knowledge, Emergence is the only VC firm with a formalized program dedicated to board excellence. It's an investment that yields returns where they matter most—in bending the odds of success for our founders. Founders, I'm curious: What board member behaviors have you found most valuable?

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