Our Unique LP Base and Fund Structure: An Entrepreneurial Approach

This is part 6 of 10 of our 10 Years of Laconia Series.

We just don't fit in. Our personality has always been that of outsiders. This outsider identification is likely what drove us to become founders in the first place, both as operators and as venture capitalists. We are drawn to entrepreneurial niches that pique our curiosity, where there’s a unique fit, and then we build something meaningful around that opportunity. This is precisely how we built Laconia.

Laconia is the culmination of this approach, consisting of three core seed funds, a fund of funds, a number of later-stage SPVs (special purpose vehicles) allowing us to capitalize on our pro-rata rights, and GP interests in two blockchain infrastructure funds. We call this a horizontal approach to building assets under management (AUM). It enables us to achieve scale without losing our early-stage founder spirit. While we recognize the incentives and advantages of growing AUM, we’re committed to doing so without sacrificing our core strengths in seed-stage investing, upside potential, or alignment with our LPs. Our philosophy is simple: we make money when they make money.

A Unique LP Structure

Our LP structure sets us apart. Instead of relying on institutional investors, we’ve cultivated a base comprised primarily of family offices and high-net-worth individuals. This structure allows us to foster a more personal and collegial relationship with and among our LPs. By prioritizing engagement and open communication across all of Laconia’s activities, we’ve made education, collaboration, and community central to our operations. These principles not only enhance the value we provide to our portfolio companies but also make our partnerships deeply rewarding on a personal level.

Balancing Scale with Foundational Values

Over the past decade, we’ve grown Laconia from a start-up to a diversified investment platform. Yet, we’ve never lost sight of our identity as founders and entrepreneurs first. This identity drives our curiosity-driven, outsider approach to investing. We’ve consciously rejected the traditional founder/VC dichotomy, recognizing that such a divide can undermine the trust and collaboration essential to building successful companies. For us, bridging this gap isn’t just practical—it’s also more enjoyable.

Our horizontal approach to AUM growth allows us to remain nimble and aligned with the founders we back. By maintaining this balance, we’ve created a model that serves both our investors and our portfolio companies while staying true to our entrepreneurial roots. Laconia’s success is built on this foundation of trust, alignment, and curiosity—principles that guide us as we continue to navigate and shape the venture capital landscape.

David Arcara

Treat Your First Investor Meeting Like a First Date – 2024 Update

In 2015, as I was starting Laconia after five years of being an angel investor, I wrote this blog comparing a first pitch meeting with a VC to a first date. The parallels are uncanny—from the nervous anticipation to the delicate balance of making a great first impression without overdoing it. Now, as Laconia celebrates its 10th year, I pulled the blog back up, and it still holds true today. I decided to slightly update it and republish it—let me know if you disagree.

A warm introduction has been made. You’ve been wanting to meet this investor for a while, and now it’s finally happening. Thanks to the internet, you dive deep into your research. You check out their LinkedIn, scroll through their tweets, read their blog posts, listen to their podcast appearances, and see what deals they’ve done recently. The sheer amount of information can feel overwhelming, but being prepared is non-negotiable.

Everyone feels a little nervous before a first date—or in this case, a first investor meeting. It all starts with how you present yourself. You want to strike the right balance between professional and approachable. The last thing you want is to walk into the meeting feeling either over or underdressed. Read the room before you enter it.

On the way to the meeting, your mind is racing. How do you kick things off? Do you break the ice with small talk? What if they’re not a sports fan, or they don’t care about the latest tech trends? You remind yourself that both of you know why you’re here—the key is making that connection in an authentic way.

Then comes the chemistry test. Will they get you? Will they see the vision? Will they find you compelling or tune out after five minutes? You need to strike the right balance—confident but not cocky, passionate but not overwhelming, engaging but not dominating the conversation. This isn’t about a one-sided pitch; it’s a two-way street. You’re evaluating them just as much as they are evaluating you. Would they be a good long-term partner? Do they align with your values? Can they help you fill gaps where you need support?

Now, the conversation. You sit across from them with so much to say. You focus on making your points clearly and succinctly, avoiding rambling. You make eye contact, sit up straight, and try not to fidget. You know this isn’t their first pitch meeting, and it’s not yours either, but they hold the power of whether there will be a second meeting. You want to leave them with just enough intrigue that they want to continue the conversation, but not so much that you overwhelm them with every single detail about your business.

Then, just like a date, the meeting comes to an end. Did you make a strong enough impression? How do you follow up without coming off as too eager? Is a thank-you email enough? Should you send over a thoughtful note summarizing the conversation? Should you play it cool and wait for them to reach out? You remind yourself that if this doesn’t go anywhere, there are plenty of other investors in the sea.

Every meeting is an opportunity to refine your approach. Just like dating, you learn from each experience, adjust your strategy, and improve over time.

The analogy may make you laugh, but it holds true. A first meeting with a VC is just like a first date. Treat it that way—from how you dress to how you communicate and listen. Don’t push for a close; that’s not how venture investing works. Just like in dating, both sides need time to get to know each other, understand if there’s a real fit, and determine if this is the beginning of a long-term relationship or just a one-and-done meeting.

We Didn't Follow the Lead Investor: How We Learned to Love Due Diligence

This is part 5 of 10 of our 10 Years of Laconia Series.

Power laws seem to be ever-present in human endeavor, or at least in the conduct of rigorous due diligence (DD). Warren Buffet famously noted that a receding economic tide reveals who’s swimming naked. A view into the conduct of VC due diligence can be just as revealing.

To be fair, there is some impressive DD being executed within our industry, but we learned early on that when it comes to how many firms actually conduct rigorous DD, let’s just say that the 80/20 rule is still very much alive and well.

Early on as angel-investors-turned-VCs, we were inclined to be in awe with “institutional” investors. After all, they were the big kids vetted by LPs and empowered by fee-funded resources. We couldn't wait to be in syndicated deals with the pros, hungering for all that we would learn from them. And learn we did; the good, the bad, and ugly!

Fortunately, it was an early deal that humbled our naivete. We were invited into our first syndication with some very established VCs; a pinch-me moment. Part of the syndication was an opportunity to see for the first time other VCs’ DD and deal memos. Holy grails of learning, we thought.

Ouch! Where was the detailed P&L analysis, thoughtful bottoms-up TAM assumptions, investigative insight into the founders, prospective customer feedback, pro-forma org chart visualizing the functional and reporting to be built with our capital, a granular map of competitive risks; we could go on. So much was either missing or superficially commented upon.

Our own analysis revealed some key concerns. And yet, these were the pros. They were intuitional investors with years of experience. Maybe we were missing something. We placed more weight on their reputation than we did on our own analysis and moved forward with the investment. And that was the last time we did that!

Original and rigorous DD, and not following the VC pack, became our bedrock tenant, so much so that we have led more deals than not, even when we are not the largest check. We have learned that the value of sound DD goes beyond the identification of a good deal – it can build lasting trust with founders. The DD process, when done rigorously, can help a company create a more effective capital strategy and show a founder that we are willing to roll up our sleeves and work side by side with them. It also produces better ROI!

David Arcara

Quotient CEO Lizzie Matusov Named to Inc's Female Founders 500 List!

Congratulations to Lizzie Matusov, CEO of our portfolio company Quotient, on being named to Inc's Female Founders 500 list!

Inc. Magazine’s Female Founders list honors the most innovative female-led businesses, spotlighting their incredible work and impact.

A huge congrats to Lizzie and all the trailblazers on this list!

Check out the full list here.