Why Venture Groups NEED Your Deals

There’s a hidden fear for a lot of early stage founders who are navigating getting in touch with the right investor groups for their raise.

They feel like they can’t get in touch with too many people.

While being case dependent, this is fundamentally incorrect.

I want to shed some light on how deployment cycles work for VC groups and how they allocate funds:

Venture funds are not passive pools of capital. They are vehicles with mandates, timelines, and deployment obligations.

When a VC raises a new fund, they take capital from LPs - pension funds, endowments, family offices - with the explicit commitment that they will deploy that capital into a defined number of companies, within a defined period of time, following a defined thesis.

They are contractually and reputationally bound to do so.

Most funds operate on a 10-year lifecycle, but their deployment window - the period during which they must actually put money to work - is far shorter.

Typically 3–5 years.

After that window closes, they transition into reserve management and portfolio support mode.

In other words: they need to deploy or they fail to do their job.

This is the main reason that targeted research and finding what funds align directly with your company is so important.

Because the capital is going to be deployed one way or another.

And if what your company does, operates in, and current stage of maturity is in direct alignment with what a VC group is looking for - it’s hard to believe that they do not want to be LOOKING for deals like yours.

They have people on their team who’s sole purpose is to find, review, and speak with companies like yours.

This is exactly why our approach for the mandates we take on is so data heavy.

We can align exactly what types of funds are looking for deals like yours in the market, and reverse engineer the process of getting in touch with them.

Our group is finalizing the mandates we are looking to take on before Q1 2026.

I spent some time going over the exact process of what our service delivery looks like and how we rely on data so much to help shape our client's’ raises.

If you’re interested in taking a look at what this process looks like in depth, feel free to give this document here a read.

I hope this helps provide some insight when you are going to market on your raises.

Have a great day,

Ryan Bryden
Breakout Capital Group