'It's harder than ever to raise a fund.' Here's one emerging manager's advice.

In the current climate of artificial intelligence funding, a select group of startups is managing to secure billion-dollar investments with remarkable speed, leaving many others competing for a dwindling pool of resources. This dynamic is also impacting venture capitalists, particularly those who are just starting out. According to Nisha Dua, a venture capitalist and co-founder of BBG Ventures, it has become increasingly challenging for emerging managers to secure funding. Dua, a former lawyer with a rich history at AOL, has dedicated over a decade to her firm, which focuses on supporting female founders and entrepreneurs from diverse backgrounds. Recently, Business Insider recognized her as one of the top women investors on the Seed 40 list. As funding gravitates towards a few favored startups, Dua highlights a troubling trend: investor capital is increasingly concentrated within the most recognized and established venture firms. Recent data from PitchBook reveals that experienced firms captured an astonishing 91% of all capital raised in the first quarter of 2026, a significant jump from 74% in 2025, marking a record high. This trend reveals a stark reality for emerging managers, who find themselves in a fundraising environment that is becoming increasingly inaccessible. Dua has firsthand experience of these challenges. She successfully closed her latest fund during a particularly harsh fundraising period. The pandemic initially flooded the market with capital, prompting many investors to leave their established firms to raise funds independently. However, the end of 2022 brought a sharp reversal as tech stocks plummeted, IPO opportunities vanished, and limited partners became more cautious. The shift has been particularly tough for new managers who entered the market during a time of easy financing, now facing a far less forgiving environment. When Dua and her co-founder, Susan Lyne, set out to raise a new fund in 2024, they emphasized their track records and unique perspectives. Their firm believes that founders who have a deep understanding of the problems they are addressing are often the best equipped to create effective software solutions, targeting sectors like consumer health and small business services where competition is intense. Dua has made early investments in promising companies such as Spring Health, valued at $3 billion, and Starface, known for its innovative skincare products. Lyne has also contributed to investments in notable startups like Zola, a wedding-planning platform. BBG Ventures, which stands for Built by Girls, leverages Dua and Lyne's extensive operational experience to provide invaluable access to a network of CEOs, public company directors, and other investors who can assist in navigating growth challenges. This strategic approach helped them secure commitments from both new and existing investors, culminating in the successful closure of a $60 million fund in 2024, the largest in the firm’s history. According to Dua, the bar for emerging managers has risen even higher following recent downturns. While having a strong track record is beneficial, it is not sufficient on its own. Limited partners are increasingly interested in a manager's vision for the future, the impact of their investments, and their unique access to founders. Many emerging managers struggle to clearly articulate their investment thesis and the reasons they are uniquely positioned to succeed, which Dua emphasizes is critical. "You have to have a real point of view," Dua concludes, urging new managers to clearly define their strategies and perspectives in this competitive landscape.