How GPs Are Closing LPs in 2025: Beezer Clarkson on What’s Working (and What’s Not) in a Brutal Fundraising Market

The VC landscape's shifted, and LPs are playing defense. From DPI pressures to the rise of spinout managers, Clarkson breaks down the new rules of fundraising—and how fund managers can adapt, fast

The VC market’s shifted significantly over the past few years, challenging both emerging and established managers to rethink their fundraising strategies. I was lucky to be introduced to Beezer Clarkson when I was enrolled in the GPX venture accelerator program.

Beezer Clarkson, Co-founder & Partner at Sapphire Partners, deeply understands these shifts, particularly in how GPs engage LPs and adapt to a more competitive fundraising environment.

A few weeks ago, we discussed key strategies for GPs in 2025, the increasing importance of LP engagement, and how the market dynamics are shaping up for both emerging and institutional managers.

Clarkson has also been instrumental in demystifying LP decision-making through OpenLP, a platform she co-founded to provide greater transparency for GPs raising capital.

---

Adapting the GP Playbook to a Tougher Market

One of the most pressing issues for GPs in 2025 is how to navigate a fundraising landscape that looks nothing like it did in 2019, 2020, or even 2021.

As Clarkson pointed out, “Understanding the market is intrinsically very different” from just a few years ago. LPs have become more selective, the bar for fundraising is higher, and firms can no longer rely on a frothy environment to drive capital commitments.

Clarkson emphasized that the most successful GPs today are those who acknowledge the reality of the new market and adapt accordingly. She outlined three critical strategies that distinguish thriving firms from those struggling to raise capital:

1. Clarity on Identity and Differentiation – “You have to be crystal clear on who you are, what you’re doing, and why you’re doing it,” she said. LPs are looking for highly defined value propositions, whether through sector expertise, a differentiated sourcing strategy, or a unique approach to portfolio construction.

2. Pre-Filtering LPs for Higher Efficiency – One of the biggest mistakes GPs make is spending too much time with LPs that aren’t likely to invest. “If you’re talking to an endowment that does one new GP every 18 months, and they’re not giving buying signals, you might want to rethink your LP list,” Clarkson noted. Applying a sales-funnel mentality to fundraising—tracking which LPs are engaged, who is actively deploying, and what their criteria are—has become essential.

3. Embracing a ‘Barbell’ Market Dynamic – The venture market has long had a barbell effect, where capital concentrates at the early-stage emerging managers and the largest firms, with a challenging middle ground. “What we’re seeing today is that the gap has widened,” Clarkson explained. While LPs are still interested in backing new managers, they are being highly selective. Meanwhile, established firms with strong DPI (distributed to paid-in capital) are able to raise more easily, leaving mid-stage firms (Funds 3-6) in a particularly tough spot.

---

LP Data & Mastermind Program – For Investment Firm Leaders Ready to Sell in a Tough Market

Raising capital in today’s difficult market is tougher than ever—but mastering the sales process can change the game. Our LP Data & Mastermind Program is designed for investment firm leaders who are serious about learning to sell and securing capital commitments in 2025.

✔ Real-Time LP Deployment Data – Know exactly which LPs are actively deploying and avoid wasting time on the wrong prospects.
✔ Mastering the Sales Process – Learn how to sell your fund like a pro, refine your pitch, and build a high-conversion LP pipeline.
✔ AI-Driven Targeting & Outreach – Leverage cutting-edge tools to identify and engage LPs more effectively.
✔ Private Mastermind Network – Connect with fund managers facing the same challenges and share what’s working now.

🚀 For those ready to adapt, execute, and close in a challenging market—click here and we’ll get in touch to see if your firm qualifies to join!

Also, if you’d like to join today’s office hours which begin at 1pm PT (2/3/25), click here. Non-members may join for the first 25 minutes. Today, we discuss how to talk about Deepseek with your LPs, and the ramifications of Deepseek hitting the AI market.

---

What’s Next: Unlock Insider Strategies for Raising Capital in 2025

The VC landscape’s fundamentally changed, and LPs are more selective than ever. So how are today’s top fund managers securing commitments in this challenging market?

Inside the full article, you'll get:

🚀 A Deep Dive into the LP Mindset – Why LPs now prioritize DPI, favor spinout managers, and have pulled back from certain fund structures.

🎯 The Storytelling Edge – How the best GPs articulate their value, differentiate their funds, and win over skeptical LPs in a market where capital is no longer easy to come by.

🤖 How Fund Managers Are Leveraging AI & Tech – The role of AI-powered CRM systems, automated investor tracking, and data-driven outreach strategies in modern fundraising.

💡 The Future of GP-LP Engagement – How leading funds are using community-building, thought leadership, and transparency to strengthen LP relationships and stand out in a crowded market.

🔑 The New Playbook for 2025 – Insights from Beezer Clarkson on what it takes to raise successfully in today’s market—and why discipline, adaptability, and efficiency are more critical than ever.

Don’t miss the full breakdown. Upgrade now to access the complete analysis and give your firm the fundraising edge it needs in 2025. 🚀