How can you effectively source deals and build meaningful relationships with entrepreneurs?

I focus on Climate Tech and I try to utilize collective sources as much as possible. For example Net Zero Insights which is similar to CrunchBase but presents much more as it is focused on Climate Tech. I would strongly suggest utilizing industry focused websites / databases.

Actively participate in online forums and communities where entrepreneurs and innovators discuss challenges and share ideas. Platforms like Reddit, Quora, or specialized industry forums can be goldmines for discovering emerging startups.

Sempre honre com o combinado e mantenha a todos informados de tudo o que ocorrer. Pessoas que tem a mentalidade empreendedora sempre focam no resultado e o resultado depende do processo. Mostre-se sempre ativo e crie um legado, pois isso é o mais importante.

Start by showcasing your industry expertise and reputation, attracting entrepreneurs seeking strategic partnerships. Actively participate in industry forums and conference to expand your reach. When engaging with entrepreneurs, prioritize authenticity and trust. Listen intently to their visions and concerns, forging connections built on mutual respect. Understand their pain points and offer valuable insights beyond funding. Offer guidance, share experiences, and nurture their growth. By providing genuine value, you become a trusted partner in their journey. Consistency is key; maintain regular communication and follow-ups. Stay attuned to market trends, proactively seeking opportunities that align with your fund's vision.

To build trust with unfamiliar founders, employ deep active listening, empathy, and transparency. Acknowledge their competency and domain expertise. Show respect, commitment, and responsiveness in your interactions. Follow through on promises, offer constructive feedback, and align your goals and values. Most importantly, exercise patience, allowing the relationship to grow organically. These actions foster a strong foundation of trust between you and the founders. The Founder - Investor relationship matters most.

Here's how we source 80% of our portfolio and it's all about doing our homework first: we continuously ask our global community of 500,000 product managers to nominate the products that make their work and life easier. For 2024, we received 6,000 nominations, so that's 6,000 companies that are doing something that’s interesting to product managers and the best 200 get a Product Award. We produce quarterly Product Guides, which are trend reports based on the nominees and winners. We then take the 6,000 companies and we look at them one by one and ask ourselves ‘could this be a great investment for Mighty Capital?’ By that time, we already have a relationship with the team and often we've also added value through the awards process.

Doing homework on the startups and verticals is so important. Last year, I took short courses to help me to understand the emerging areas so I could better assess and talk to the startups. This makes the conversation much more efficient.

A thorough background research is always critical while sourcing a deal. This helps in knowing what the company could need from a VC and will give in critical points to stike a deal. This research would also help in keeping the conversation crisp and exactly deliver what the business is looking for.

Utilize advanced analytics tools and AI-driven platforms to analyze market trends, competitive landscapes, and potential risks associated with a startup. This data-driven approach can complement traditional research methods. Engage in scenario planning. Anticipate potential challenges and develop strategies for addressing them. This proactive approach demonstrates foresight and strategic thinking.

Before reaching out to startups, thorough homework is essential. Research their background, product, market, team, vision, and traction. Demonstrate genuine interest by offering relevant insights and feedback. Avoid asking easily accessible questions and showcase a deep understanding of their business. This approach saves time, avoids wasting the entrepreneur's time, and establishes a positive first impression, reinforcing your commitment to meaningful engagement.

After 15 years as an angel investor in 30+ startups, Ive developed a clear hypothesis on the ideal profile for founders (and teams) with whom I want to collaborate: Contrarian Technocrat. After doing my initial research on the product and market segment, I typically make an outreach by email or LinkedIn to arrange an introductory call. During this call I share my view that the best founders are a mix of Contrarian (visionary evangelist who are relentless in changing the market) and Technocrat (focused on operational details and implementation) characteristics. Then I literally stop talking & spend the rest of our time together listening to the founder(s). This process is always enough to tell me if the opportunity merits further diligence.

Consider incorporating video messages to add a personal touch. Seeing a face and hearing your voice can create a more memorable and impactful introduction. Show genuine enthusiasm. Express why you, as an investor, are particularly excited about their venture and how your involvement can contribute to their success.

Clear and concise communication when reaching out to startups is crucial. It respects entrepreneurs' time, showcases professionalism, and avoids the perception of spam. Tailoring messages to specific startups sparks curiosity, while realistic expectations build trust. A respectful and friendly tone contributes to a positive first impression, fostering professional relationships without overwhelming startup founders with unnecessary details.

When I was a founder, one of the best things an investor offered was an honest to god “serendipity chat” where we just traded ideas and feedback without a pitch. I now save a little time every month to offer these in my network. It’s a huge value add for the startup to get some experienced input and I always learn something!

From the perspective of an entrepreneur, I view the VC's experience in the legal & incorporation aspect of the startup phase to provide the most value. Since every startup has a bit of a different scale story, there are archetypes within the legal & incorporation realm that a VC can fit to a startup that can provide significant value, cut the cost of overhead & stress, & be a catalyst to innovation.

Offer industry-specific expertise. If you have experience or insights relevant to their business, share them proactively to demonstrate your value beyond capital. Facilitate connections within your network. Introduce startups to potential clients, partners, or mentors who can accelerate their growth. Stay informed about industry trends and regulations. Providing timely advice on navigating challenges can position you as a valuable strategic partner.

Building meaningful relationships with entrepreneurs involves providing value through feedback, advice, introductions, resources, or opportunities. This goes beyond transactions, showcasing a commitment to long-term partnerships. Understanding their challenges and goals allows tailored support, establishing trust, credibility, and rapport. By consistently offering value, you become a trusted partner, increasing the likelihood of being considered as a valuable investor in their journey.

Initiating contact with a startup is just the beginning of what should be a strategically nurtured, long-term relationship. Follow up and stay engaged and demonstrate genuine interest in their endeavor. Remember, this is not just about moving a deal forward; it’s about demonstrating a deep understanding of their business, and how, from an investment and strategic standpoint, you can contribute meaningfully to their growth. Be transparent regarding the fit and timing of a potential collaboration. Be helpful through advice and guidance even if a direct investment opportunity does not materialize. It’s not about an immediate deal; it’s about establishing a long-term foundation of mutual respect and understanding.

Consistent follow-ups and staying in touch with startup entrepreneurs are crucial for Venture Capitalists. It nurtures relationships, provides updates on progress, and allows adaptation to changes. Regular communication helps identify new opportunities, builds trust, and enhances collaboration. Understanding evolving needs and being accessible for problem-solving contribute to a positive perception as a supportive partner. Overall, staying engaged ensures that VCs are well-positioned to navigate the dynamic landscape of startup ventures.

It’s been very meaningful to stay in touch with founders I haven’t invested in in the end. Often their idea doesn’t work out but they are quickly on to the next interesting/promising thing. As an investor, and nice person, aim to not burn bridges and always let startups down easy with some productive feedback and an open door for updates in the future.

Would you rather sit through a 15-30 min pitch only to realize that the deal falls outside of your thesis, ROI or mandate? I often step in on introductory calls to explain what I am looking for before the founder introduces their work. If there is a mismatch, it's a no from the founder instead. This not only saves time but conveys to the founder that it's the investment criteria and not their pitch that lost both of us a deal. I then use the rest of the call to find other possibilities where we could both help each other. They find me founders who do fit and I share my network of people who they could connect with.

In addition to all the common VC deal sourcing strategies, my personal approach is to be outspoken about what I invest in and what I have expertise in. The first step in gaining entrepreneurs' trust is to recognize their time is valuable and give them ample information about my thesis. This way, if we mutually determine there is a potential fit, the follow up conversation takes us to the next level in relationship building.

Charting a clear investment thesis helps in finding the right set of startups. It is the same as knowing what to eat and ordering the same. Keeping track of the existing movement in the ecosystem is important. Especially tracking the folks before you in the value chain and their activity. They can ideally turn out to be a good feeder. What's also a good strategy is to check for funded startups regularly through the news, pick their best competition and park money there. At times, working closely with angels and super angels also help in building a good funnel.

I believe, the joy of expanding deal flow beyond the usual methods of referrals, events, and platforms! Just like how experienced investors have been incorporating blogs, podcasts, and social media into their strategies for a long time. Tools like Crunchbase and AngelList are well-known and widely used for investment scouting. Genuine interaction with startups goes beyond generic messaging; it requires a skillful approach of personalized communication and thoughtful follow-ups. In today's fast-paced world, only savvy investors who understand the importance of trust and value can keep up with the ever-changing landscape of innovation and entrepreneurship.