What strategies can you use to source deals creatively?

Learning from customers is a great way to source deals. The play book is the following: 1. Create a thesis in a space that has structural tailwinds. Understand the companies operating in that space. 2. Through 1 or 2 companies, try to speak with the customers they are serving. 3. As you are speaking with the customers, ask them what other companies products have they used for the same problem. 4. If you hear a name or 2 more commonly, understand that they are doing something remarkable. Sourcing with customer NPS as a stack-ranking tool in a space you have built thesis is a very effective way to source good deals.

The key to effective social media is to be generous, honest, clear. Share things you've learned. Share failures. Share successes. Ensure that founders see you as an insightful advisor, an accessible guide. The more you try to act like you know everything, the less appealing, safe, inspiring you will be to founders.

Few additional strategies to highlight. Networking Events Outside Your Industry: Attend networking events outside your typical industry focus. Cross-industry connections may lead to unexpected opportunities and broaden your perspective on potential investment areas. Corporate Innovation Programs: Explore partnerships with corporations running innovation programs or accelerators. Many large companies have programs designed to support and invest in startups that align with their strategic goals

Nurturing and performing for your current clients and get referrals proactively. Seek to engage with their suppliers, clients merchants, etc. People want to know that they’re working with professionals that are going to deliver and perform on the tasks at hand having testimonials that they know and work with make for an easy entry point. At all times illustrate high ethics, and emphasize clear communications to avoid misunderstandings

Join different communities on discord, facebook, and slack. Also join industry specific groups and follow industry leaders on linkedin and twitter.

If you have a portfolio company that is scaled, ask them what would they build or buy (sub space) in the next 2-3 years. That would give you an indication that the market is getting ready in that space but is early enough for it to not be done by a large company today. This is a great way to identify upcoming companies with good exit potential.

To creatively source deals, leverage your portfolio by using your existing portfolio companies as a network hub. They can offer insights into emerging trends and potential opportunities in their industries. Showcasing the success stories of your portfolio companies enhances your reputation and attracts new ventures seeking similar growth and support. Active engagement with portfolio companies at industry events, demo days, or through co-investment opportunities can also lead to new, potentially lucrative deals that align with your investment strategy. By nurturing and tapping into your existing portfolio's network and success, you can uncover unique and high-potential deal opportunities that might otherwise be overlooked.

Word-of-mouth from portfolio companies are best referrals. Smart people hang around with other smart people. “Fashion Shows” (“Pitch Competitions” to a room full of prospective investors) filled by inviting friends of portfolio companies is another superb suggestion. You get to see, 1st-hand how prospects behave in front of others; can they show-up and kick-ass? can they captivate a room? Can they explain their value proposition to a room who haven’t a clue what they do? Ostensibly these companies are an essential player to meeting the goals of the portfolio - but can they deliver as a cohesive team on-time? Putting them in touch with your leading-portfolio leadership is also a good validator.

Leveraging your portfolio for deal sourcing is a strategy deeply resonant with my expertise in startup incubation and venture capital. Your portfolio companies are not just investments; they are testimonials to your acumen and support as an investor. Utilize them for introductions and referrals to other promising founders. Showcasing your portfolio's success on your website, blog, or podcast demonstrates your value proposition and expertise. Additionally, inviting portfolio founders to speak at events or webinars provides them a platform while also highlighting your role in their growth. This approach not only strengthens your portfolio community but also attracts new entrepreneurs seeking knowledgeable and supportive partners.

Ask your portfolio companies for intro's to other founders. Make sure you provide enough value to your portfolio companies so that you are always top of mind.

Go to where founders hang out and need help. This could be accelerators, incubators, industry associations. Helping founders solve problem is an easy way to demonstrate your value, be remembered, gauge chemistry and be welcomed when the time is ripe to discuss investment.

Partnering with accelerators and incubators is always a superb means of gaining traction with a “600 pound Gorilla”. But you want to pick a strategic accelerator fully aligned with your goals. Often times they are good talent sniffers - once you are into an accelerator or inclubator other groups such as yours will fall apart - thus you get access to top talent who are looking for a new gig. But it’s not all “wine and roses”; I have friends who were on receiving end of IP theft perpetrated by the accelerator/Incubator and because of the NDA’s they signed, they had to bend-over and shut-up about it. In my experience, however, a strategic partner in funding and ‘go to market’ strategy is best option if available - you get farther, fasert.

Engaging with accelerators opens up a pathway to a diverse and dynamic set of startups, especially valuable in sectors like tech and health. Through roles like mentoring or judging, you gain early access to promising ventures. It’s not just about offering guidance; these interactions provide insights into the evolving landscape and fresh perspectives. Hosting workshops or pitch sessions also demonstrates your commitment to fostering innovation. This involvement builds meaningful connections with founders, positioning you as a key player in their growth story.

Estoy plenamente de acuerdo en que las conexiones son un activo invaluable en el mundo del Venture Capital. Establecer asociaciones estratégicas con socios, como aceleradoras y firmas de capital sólidas, que cuenten con una destacada presencia en el mercado y una extensa red de contactos, no solo facilita el acceso a diversas oportunidades de inversión, sino que también puede optimizar las condiciones financieras y proporcionar ventajas competitivas significativas. La construcción de relaciones sólidas en la industria no solo es esencial para identificar nuevas empresas potenciales, sino también para crear sinergias que impulsen el éxito a largo plazo en la cartera de inversiones.

It is not only accelerators who you meat when you go on pitch sessions. You will meet other investors, see their interests, questions they ask, sectors they cover, thesis and criteria they have. Thus having a lot in common you can search something special not only in this acceleration program. You can provide mutual analytics, sector coverage, disputes | workshops | etc. with corporations and strategic investors on market design, future products and technology needs. Of course such an 'on-demand approach' may not be the main deal flow for searching startups / inviting, gathering teams. But it can surely contribute to your sectoral portfolio.

Exploring alternative platforms offers fresh perspectives on sourcing deals. Consider platforms like BetaList and Launching Next, which showcase startups in their pre-launch phase, providing early insights into potential market disruptors. Another option is Gust, a global platform connecting startups with a large pool of investors. For a focus on social impact ventures, platforms like Echoing Green and Unreasonable Group are invaluable. These sites offer access to startups with innovative solutions addressing social and environmental challenges. Utilizing these platforms can reveal unique and impactful investment opportunities often overlooked in traditional channels.

From the perspective of professional sales techniques, nothing replaces face-to-face relationships, and personal referrals. Cold-calling never worked for me, nor email campaigns, etc. Nothing replaces the human touch of getting out of our chairs, traveling into the field, and meeting prospects in their “natural environment”. We find out more by what is not said than what *is* said. A handshake, a cup of coffee, a nice meal…those are the tools I prefer. Your mileage may vary; but face-to-face always served me well.

Experimenting with outbound tactics can be a powerful approach, especially when tailored to the startup ecosystem. Cold emailing, calling, or messaging, when done correctly, initiates valuable conversations. Personalizing each outreach. This involves researching the startup thoroughly to understand its mission and challenges, and then crafting a message that clearly communicates how your expertise and resources can help. It's vital to be respectful of their time and vision. A clear goal, concise message, and a compelling call to action in each outreach help in getting positive responses. Tracking results and feedback from these efforts is crucial for refining your strategy and ensuring effectiveness without overwhelming potential partners.

Host Innovator Contests: Pitch competitions can bring fresh startups to your doorstep. Mine Online Gold: Scout crowdfunding platforms and virtual startup hubs for early gems. Content as a Magnet: Use insightful articles to draw in visionary founders. Academic Alliances: Partner with universities to discover breakthroughs in incubators. AI Scouts: Deploy artificial intelligence to spot high-potential startups. Niche Networks: Delve into specialized forums for targeted tech sectors. Alumni Outreach: Leverage educational networks for insider leads. Conferences with a Twist: Speak or panel-lead at events to boost deal-making chances. Social Spying: Listen to the digital grapevine for the next big thing.

Use your community/investors If you have an engaged and empowered set of investors, then they can be a great source of deal referrals. We have 1350+ community members over six continents and we have empowered them to be a source of deal flow and other introductions (for investment value-creation). As a result, ~50% of the deals we have executed have been sourced from within our community.

Partner with people well connected in the startup ecosystem. Examples range from partnering with venture scouts, community builders, and partnership managers.