Key Takeaways
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Reporting foundation: LP reporting earns a general partner the confidence to raise a next fund, and a firm that sends only the mandated disclosures gives limited partners no reason to re-up.
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Update contents: A quarterly LP reporting update carrying fund performance and portfolio detail gives limited partners more than the standard reporting requirements ask a firm to disclose.
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Communication rules: General partners should report on a set cadence, go past the required basics, write in their own voice, and withhold information portfolio companies hold confidential.
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Starting format: A general partner without an update format should adapt an existing LP template and ask peer funds for examples rather than designing a report from scratch.
The foundation of a great relationship between General Partners and their Limited Partners (LPs) is based on trust and transparency. A great way to foster this dynamic is by sending regular, insightful communications to your LPs.
While it can feel intimidating to go outside the box and share details about your fund performance in addition to the standard LP reporting requirements, this is a great way to stand out as a General Partner. With competition for funding being as intense as it is in today's climate, it's a smart move to go above and beyond to impress LPs and establish a trustworthy reputation as a GP.
In the first half of 2026, capital raised by US venture funds reached $72.4 billion across only 405 funds, according to the Q2 2026 PitchBook-NVCA Venture Monitor.
Michael Kim, founder of Cendana Capital, put the bar in plain terms at a November 2025 LP panel covered by TechCrunch. "it's going to be really hard to convince a university endowment or a foundation ... to invest in your little $50 million fund unless you're super pedigreed." Everything a GP does between raises is part of clearing that bar.
A guide to LP reporting best practices for VCs
This guide was created in partnership with Aduro Advisors, a premier Fund Admin led by industry veterans. We partnered with Aduro for a webinar where we discussed the process of reporting to Limited Partners and best practices in-depth. This guide is a summary of that discussion.
The contents of this guide include:
- The importance of the LP reporting
- LP reporting best practices
- Sending LP updates as a fundraising strategy
- What to include in an LP Update
- A quarterly LP reporting update template
LP update templates for VCs
If you're not sure where to get started with your communication with LPs try checking out LP update templates for VCs or asking other GPs in your network for examples of what they're sharing with LPs.
Some basic LP communication rules to follow include:
1. Send your updates on a regular cadence
2. Go beyond just the basics
3. Be authentic with your communications
4. Don't share sensitive information about your companies
For more tips check out: Tips for Writing LP Updates for Emerging Managers (with Templates)
For more inspiration check out Visible's LP template library for inspiration.
Resources for reporting to LPs for venture capital investors
Check out these additional resources to inspire your next LP communication.
Frequently Asked Questions
Why should a general partner share more than the standard LP reporting requirements?
Going beyond required reporting is how a general partner separates a fund from others chasing the same LP capital. Detailed candor about fund performance earns a reputation limited partners remember, and openness is what a durable GP and LP relationship rests on.
Where can a general partner find examples of LP updates?
Template libraries built for venture LP updates give a starting point, and other general partners in a fund's network share the formats already in use. Asking peers directly surfaces what other funds actually send to limited partners.
What rules should a general partner follow when writing an LP update?
Four rules govern LP communication: send on a regular cadence, go beyond the basics, write authentically, and keep sensitive portfolio company information out of the update.
