How can you find and attract quality deal flow?

VC is a NETWORK game, like it or not !! Here, Network == NET WORTH Building good relationships is required for it like - - to get the best deal flows to invest into - to get good opportunities for portfolio companies for future funding and exits - to get a good fundraise from LPs to start the fund - to get good talents to work in your & portfolio company & many more To do so, - Help founder's in different things selflessly - Attend various events, communities etc - Share your insights and learnings online for free

Building a network isn't about collecting names—it's about crafting bonds. In the fast-paced business realm, a diverse network is your innovation powerhouse and market compass. Stay authentic, keep learning, and remember: it's a two-way street. Dive into the digital world, break boundaries, and prioritize depth over breadth. Every chat, tweet, or handshake can unlock a universe of opportunities. Let your network be your guiding star, lighting up your path to success. ??

A specific network is key. Content which is made for the founders and attracts them to you - thus inbound pitches. However the key is to make content which is specific for your portfolio, thus filtering out a lot of the "spray and pray" pitches. LinkedIn is fab for this and can result in great deal flow. As im in the biotech/neuroscience world the entrepreneurship departments at universities is a gold mine. Hold talks there from time to time, explain your protfolio and stages - this way you begin to build a relationship with the founders who fit. As i provide technical neurosci dd i get biotech decks a lot. DD experts/advisors are also a great source for deal flow especially those who have niche networks!

If you are academically include, or have a partner who is, consider working with local universities or hospitals. The presidents or deans there would love to have a VC as an advisor. Once you are in, you will hear about the most active faculty. You can offer to judge business plan competitions or mentor engineering design projects. The deans might be able to recommend the best technology transfer officer for you as well.

Good networking, in general, is the best way to obtain access to the best opportunities. However, is not the only factor that contributes directly to identifying a good deal flow. But, in consonance, with the chance of obtaining recommendations, you can also have access, through your network, to other ways to find these deals. One example is to get the chance to participate in an acceleration program, that will connect you with possible investors or investees.

Developing a strong thesis is IMP otherwise you will just move in different directions all the time without reaching anywhere. Strong thesis includes - - sectors you will invest into - stage of startup like pre seed, seed, series A/B/C/D etc - cheque size like $1M etc - white spaces in your preferred industry - geographies like India, USA etc

Some Investors under-estimate the power of building a thesis and committing to it over a defined period. Founders can sense when an Investor approaches them opportunistically, without any prior knowledge on what they are building. Instead, when Investors go out sourcing with clear hypothesis of what they are looking for / what market opportunities they are interested in, it has the following benefits: 1. It signals to founders that, as Investors, they are conviction-based, not just following the herd. 2. It generates more in-depth, fruitful conversations in founder meetings. 3. Such Investors can leverage their network in a more targeted manner 4. They will look at a market more in-depth, and will spot the "hidden" opportunities.

Create a defined thesis with details - industry, sector, stage and size of company, preferred customer audiences or anything else that is important to you. This thesis will help you filter potential investments AND help companies seeking investment understand what you will/won't consider. It's also good to understand the investment thesis of others in your network so you can refer opportunities to them and vice versa.

A clear and well-defined thesis is a game-changer if you articulate it well, pursue it consistently over time, and talk about it. You can then build a reputation among peers as the go-to investor for a particular industry, technology, etc. Founders love the relevant experience, previous investments in similar companies, and the thesis-specific network. You understand their business better and you can help more effectively.

Your investment thesis is essential to obtaining good results on your investments, this document is the main parameter you have when filtering and deciding where to do the capital allocation. This is so each investor has their knowledge and expertise, as much as risk tolerance and fields of preference, and these characteristics are the parameters when analyzing possible deal flows. Imagine a scenario where the investor decides to apport in a business they don't know anything about the field and need expertise they don't have, the chances of failure are big, even more, so if this investment involves a smart contribution needed from the invested.

Speak to people in expert networks and niche fields. For biotech/neuroscience startups: - Consultants - Due diligence experts - Life Sci recruiters are all examples of where great talent can be found. Then its about creating a talent funnel directed towards you. Speaking with these kinds of people opens many doors for fab founders!

If you want really early-stage ideas, organize a pitch competition. For a $100k prize or so, you can easly get 20-50 applicants. If it goes well, the second time you can generate some local media coverage. You can even syndicate the competition to other cities where you have colleagues.

Look for various events and organizations that can provide access to groups of founders and other talent. Combinators, mentor organizations, pitch days, universities, industry groups that offer mentoring or 'office hours' and more can easily connect you with many people.

Acceleration programs are a great way to obtain access to a good deal flow, once you create time to know and analyse each project individually. Also, this process allows you to create a relationship with the founders and main team, in a way you will know the business even closer. on the other hand, offering this kind of program also allows you to identify if there are some red flags, such as a process problem or a failure that demands some correction before doing the capital injection. To individual investors, there is also the possibility to do this process of analysis and relationship. This can be done through an advisory format, or receiving reports from this prospect until they have enough confidence to invest their capital.

Creating value and the opportunity for ongoing value is a core tenant of good networking. Know your expertise and be clear how you could help others. Offer your expertise, help, introductions, etc. to those you believe will benefit from it and use it wisely. While you want to give, you want to be judicious in who and how you help. Remember everyone you refer to others in your network is a reflection of you. Choose wisely.

Providing capital is not enough anymore in Venture Capital even in current market environment where capital is a bit more restricted. As VC and CVC focus on creating additional value by leveraging your resources and strength. A clearly defined USP of your VC / CVC is required here.

In a scenario where there are many investors available to inject money into the companies, it's essential to offer added value, once this situation creates competition among them for the best opportunities. For that reason, it is so important to search for deal flow opportunities that make sense for the investor's thesis, when they can contribute to the business's success with their expertise and strategic contacts.

Building a robust network is essential for referrals and establishing credibility in the industry. Defining a clear investment thesis helps streamline your focus and attract like-minded entrepreneurs. Scouting for talent proactively and creating value for startups and the ecosystem can set you apart. Finally, the willingness to experiment and learn is crucial for continuous improvement and adaptation in the ever-evolving venture capital landscape.

Mentoring is a great way to both add value to the business and have the opportunity to access good deal flows. It is a way to obtain information, learn, and grow as an investor and an entrepreneur. Good investors are always searching for new information, to be updated on the market's behavior and know the new tendencies, with the goal to obtain the best results. This means they also have something to learn with the aim of improving their decision quality. It is essential to know that not every deal will be successful, in a way that some of them will be experiments of risk to test the markets' behavior or acceptance of an innovative solution or technology.

A great way to build your network is to host your own events. It has a few advantages: - Cost-Effective: Start small. Use cost-free venues like restaurants, pubs, or offices - Tailored Networking: Handpick attendees to foster meaningful connections - Boost Your Reputation: Becoming known as someone who loves connecting people can enhance your profile Here are few tips: - Keep it niche: Focus into a specific area of VC or startups that matters to you - Collaborate: Team up with colleagues or friends from other VC firms to expand your event's reach and impact - Engage: Spark lively discussions during the event for a lasting impression - Follow-up: Collect contact information and ensure everyone stays connected after the event

To find and attract quality deal flow you want to develop a niche expertise and provide value to the ecosystem. Developing a niche expertise is like building a lighthouse that guides ships— in this case, quality deals— right to your port. When you're a master of your niche, startups in your field will hear about you and naturally gravitate towards you. Providing value to the ecosystem is where the principle of "the more you give, the more you get" comes into play. Offer advice, make intros, write insightful pieces, host webinars— essentially, become a knowledge hub. You're investing in the ecosystem, creating a virtuous cycle that ultimately benefits you.