How Harry Stebbings Scaled 20VC Fund from $5M to $100M+
Harry Stebbings, the founder of 20VC, has become one of the most recognizable names in the venture capital world. Stebbings initially made a name for himself by hosting The Twenty Minute VC podcast, a popular resource for aspiring venture capitalists, founders, and anyone with a stake in the world of early-stage investing. However, his success story doesn’t end with podcasting. In just a few years, he took his own venture fund, 20VC Fund, from a modest $5 million to an impressive $100M+ — a remarkable growth story that offers valuable lessons for aspiring fund managers. Let's take a closer look at how Stebbings managed to scale his fund and what you can learn from his approach.
1. Building a Strong Brand & Audience
One of the key strategies that helped Harry Stebbings scale his fund was his ability to build a personal brand through his podcast. The 20VC podcast became a must-listen for venture capitalists, founders, and anyone involved in the startup ecosystem. By interviewing top-tier VCs, entrepreneurs, and operators, Stebbings positioned himself as an expert and a valuable connector within the industry.
The power of this brand cannot be overstated. Stebbings built trust and credibility long before he raised any significant capital for his fund. Through the podcast, he was able to establish relationships with potential LPs (Limited Partners), founders, and other investors. This network of influencers and industry professionals became his springboard for raising future funds.
2. Raising in Tranches & Targeting the Right LPs
Harry didn’t just raise a massive fund all at once. Instead, he raised his fund in stages, starting small and gradually growing as his track record and network expanded. His first fund was $5 million, which, while modest, allowed him to prove his thesis and investment acumen.
Stebbings wisely targeted high-net-worth individuals (HNWIs) and founders as his initial LPs. These investors believed in his ability to source deals and bring value to startups, but they were also willing to take a chance on a new manager. As he began to deliver returns, he attracted larger LPs, including family offices, fund-of-funds, and eventually institutional investors. By gradually increasing the fund size and proving the fund’s success with early-stage wins, Stebbings was able to raise progressively larger rounds, eventually scaling to a $100M+ fund.
3. Leveraging Early Wins to Build Momentum
One of the most powerful tools for scaling a venture fund is the ability to showcase early success. Harry Stebbings was able to leverage high-profile deals and early portfolio wins to build momentum for his fund. In the competitive world of venture capital, a few successful investments can provide enough proof of concept to attract future capital.
Stebbings didn’t wait until his fund reached $100M to show results; he used every success as a stepping stone for future fundraising rounds. By demonstrating solid returns and access to top-tier deals (think Y Combinator-backed startups), he was able to create a buzz around his fund. This momentum helped him scale his fund size incrementally, starting at $5 million and growing to $8 million, $50 million, and eventually $100M+.
4. Creating LP-Magnet Deals with SPVs
To keep LPs engaged and continue raising capital, Stebbings utilized Special Purpose Vehicles (SPVs) to allow larger checks into his portfolio companies. SPVs are essentially separate investment vehicles that let investors contribute capital to a specific deal without becoming part of the main fund. By offering SPVs and co-investment opportunities, Stebbings could offer LPs access to high-profile deals while maintaining the core structure of his fund.
This strategy allowed him to attract larger capital flows while ensuring that the interests of LPs remained aligned with the fund's strategy. It also helped keep capital flowing without the need to raise a completely new fund every time a major investment opportunity arose.
5. Positioning Himself as the "Founder-Friendly" VC
Harry Stebbings established a reputation as a "founder-friendly" investor. This was critical to his success, as it made him the first choice for top startup founders looking for capital. Stebbings committed capital quickly, often making decisions faster than other VCs. Moreover, he positioned himself as a value-added investor who could provide more than just money — he offered access to his vast network and expertise.
By focusing on founder-friendly terms and providing immediate support to portfolio companies, Stebbings became a trusted partner for many high-growth startups. This helped attract even more founders, further validating his ability to identify and support promising companies.
6. Building a Content Machine to Attract LP Capital
While many VCs rely on traditional fundraising methods, Harry Stebbings capitalized on his media presence to attract LPs. The 20VC podcast not only helped him build a strong personal brand, but it also created a continuous stream of inbound interest from potential investors who wanted exposure to venture capital.
Stebbings shared insights about his fund, his investing process, and the types of deals he was targeting. This transparency helped LPs understand his edge and gave them the confidence to invest in his fund. By making his fund and investment strategy visible to the public, he built a kind of "magnet" that naturally drew in capital from people who wanted to be part of his vision.
7. Scaling the Fund Gradually
Instead of jumping straight to a $100M fund, Stebbings followed a smart and measured approach. He scaled his fund in stages, moving from $5 million to $8 million, then $50 million, and eventually $100M+. This allowed him to demonstrate the fund’s ability to deploy capital effectively at each stage before moving on to the next level.
Institutional LPs, in particular, prefer to see a prior fund fully deployed before committing to a larger one. By proving his track record with smaller funds, Stebbings was able to gradually build up his LP base and raise larger funds. This incremental growth is often a safer bet for both LPs and fund managers.
Key Takeaways for Aspiring Fund Managers
Harry Stebbings’ journey from a $5M fund to a $100M+ fund offers a blueprint for aspiring fund managers looking to scale their own venture funds. The key lessons include:
Build a Personal Brand: Use media platforms like podcasts and blogs to establish yourself as an expert and connect with founders and LPs.
Start Small and Scale Gradually: Prove your track record with a smaller fund before attempting to raise a large one.
Leverage Early Wins: Capitalize on early successes to attract more capital and build momentum.
Create LP-Magnet Deals: Use SPVs and co-investment opportunities to bring in larger checks and keep LPs engaged.
Focus on Founder-Friendly Terms: Position yourself as the go-to investor for top-tier founders.
Use Content to Attract Capital: Build a content machine that shares insights about your fund and attracts LPs naturally.
By following a similar playbook, new fund managers can scale their funds successfully, just as Harry Stebbings did with 20VC. The journey from a $5M to a $100M fund is no small feat, but with the right approach and strategy, it's certainly within reach.