Leveraging your network

Leveraging your network is the deliberate practice of building, sustaining and activating professional relationships to support capital raising, investing and deal flow generation. For emerging fund managers, limited partners (LPs), general partners (GPs) and entrepreneurs raising or deploying capital, contacts and connections can make all the difference – but only if that network is robust, informed and in a position to help. 

This kind of network doesn’t just appear on its own. Individuals need to engage in a thoughtful process to build, maintain and engage their networks. Having the right connections can be a powerful resource for creating value over time, if that group is leveraged effectively.  

Jay Lundy, Managing Director of NAACP Capital, describes how he built and leveraged his network. He spoke about the techniques he’s used during his career to expand the reach of his circle, ensure that he remains connected with people within it and how he’s cultivated relationships with LPs, GPs and others who are in the best position to support his work.  

Interact with different kinds of people to broaden your network’s capabilities

A large and diverse professional network doesn’t develop by accident. Lundy explains the importance of treating people like people first and investors second.

Transcript: I was recently at the CalPERS and CalSTRS event in Sacramento, and I met a lot of great people there, and my point was not to meet people that I was trying to fundraise from, but just to meet people who I thought were interesting, and I could add value to their lives. So for me, it's really about truly building relationships, truly finding ways to be mutually helpful binding a lot of the things that are not work related, whether that's kids or travel, or food or wine, whatever it may be. That's been a big, big part of how I've built these relationships.  

But I've also been very key on at every step of the way. It is important whether it's a great experience or not a great experience, to make sure that you are adding those people to your network, because what happens is you never know when you can cross pollinate across those groups, or when someone from a different world or different experience can be valuable to what you're doing now.  

Stay connected with your network over time and keep them informed

Sustaining relationships is as important as forming them in the first place. Building professional connections that last requires consistent, low-pressure communication – not outreach driven by a specific need or ask. Here is Lundy’s approach to keeping the important people around him in the loop:  

Transcript: I like telling this story because it speaks to how it's been built. So I've had these different jobs. And at each career point I've been very intentional about making sure the people that meant a lot of things to me in that job stayed close to me. So this is going to date me. But I probably started this in 2010. It was an email list, and you probably initially, it was 15 to 20 people. And it was an email list of people who were, you know, my mentors or just supporters.  

And I made a point of saying, every quarter. I'm gonna send them a note, and it's going to be Jay's updates. And that is since progressed, and that list has exponentially grown. And it was never done to be a network for a specific need or ask. But it was really a way to just continue to build a relationship with people that I was not able to see every single day.  

Unlock opportunities by making the right connections and focusing attention on them

The depth of a relationship corresponds to its ultimate value. Strong LP relationships in venture capital often translate directly into deal flow generation, follow-on capital and warm introductions to other limited partners. Lundy describes the advantages of passionate LPs:  

Transcript: Henry Childs: I'm interested to know what was the best LP introduction you ever received.  

Jay Lundy: I'm going to be very open and transparent, and they would be okay with me saying this. The Kapors, Freada and Mitch Kapor, have been champions of this work like no one else. It's incredible to have investors who buy in so deeply that they have allowed and opened up their personal homes. They've opened up their personal networks to this, and that has been just something that's been so remarkably helpful for us.  

It's also been great, because when they have a track record of investing in managers you know, I don't know how many, but I imagine you know dozens plus as well as founders, so the ability for them to help us understand and help us narrow how we think about closing gaps. How we think about impact in a way that can generate returns.  

And if you look at the Kapor Funds, 1, 2, and 3 Kapor Capital Funds, 1, 2, 3. Those have been top performing vehicles that have also closed gaps in some of the hardest areas to close gaps. So for me, that's been a tremendous one, because they have led with. You know their investing experience, but they've also led with their passion and commitment. That's not wavering one bit into the cause that we so much care about.  

Conclusion

Ultimately, a powerful network is the result of intentional effort. This requires a commitment to building a diverse circle of contacts and consistently nurturing those connections over time. By focusing on genuine relationships rather than transactional contacts, you can cultivate a powerful circle that not only supports your goals but also amplifies your impact over the long term. Start today by reaching out to one key contact—your network's potential is waiting to be leveraged.  

At SVB, we're dedicated to empowering these strategies, providing the tailored expertise to help you navigate the path ahead with confidence. Let’s get started.