How I Source Deals (Part 2)

We investors have no function except to find and help the next Google. But, uh, where is it?


Get the blog before anyone else…subscribe!


Finding the great companies of the future is a huge part of our job. I look at 150-250 companies every month.

I choose one.

Since I wrote about sourcing deals last fall, my approach has changed a lot. Here’s how I’m finding great startups now:

1) Pitch events. There’s nothing like being in person, right?

Wrong. The best pitch events I attend are usually virtual.

Founders from anywhere on earth can attend. My latest investment is in an incredible company based in the UK.

I never would’ve met that founder at a New York pitch event.

My favorites are Remote Demo Day and LAUNCH Accelerator Demo Day, both put on by Jason Calacanis’ venture firm. Stonks also has some great events.

For in person tech events in NY and SF, check out Gary’s Guide.

2) Portfolio company founders.

For me, this is the highest signal intro I can get. Any meeting with a founder recommended by someone I’ve already invested in goes to the top of my list.

This also is a great strategy for founders to approach investors. Find some founders they’ve already invested in and ask for an intro.

You may already know some of their portco CEO’s!

3) Venture firms. Great deals are currency.

Whenever there’s space in the round, I send out deals I’m doing to a number of venture firms in my network. This helps the startup and the VC’s if they find a great deal.

In return, they introduce me to some founders they’re investing in. These entrepreneurs are pre-vetted by smart investors, making my job way easier!

4) Seedscout. Seedscout is a really cool new platform that lets founders request intros to investors.

This is especially useful for founders who aren’t in Silicon Valley or New York.

I made an investment in an incredible Utah SaaS company I met on Seedscout. I never would’ve met them otherwise.

I like the platform so much I actually invested in Seedscout itself!

Seedscout is free for investors. Check it out!

5) Syndicates. As I approach the two year mark as an angel, I’m doing fewer and fewer syndicate deals.

Four out of my last 5 new investments have been direct. Over time, I’ve built a network that helps me find great deals on my own.

That has two huge advantages.

You’re not at the mercy of whatever a syndicate lead decides to send you. And you don’t have to pay anyone 20% of your gains!

But for a new angel without a great network, syndicates are an absolute must.

The best one is Jason’s, here. Flight VC, an arm of Gaingels, also has some great deals.

I am still happy to do syndicate deals if that’s the best deal available. 80% of something beats 100% of nothing any day!

How do you source deals? Leave a comment and let me know!

More on tech:

HOW I SOURCE DEALS

I LIKE BIG TAM’S AND I CANNOT LIE!

GOOGLE IS LOSING THE AI RACE

Get the blog before anyone else…subscribe!

If you found this post interesting, please share it on Twitter/Reddit/etc. This helps more people find the blog! 

Save Money on Stuff I Use:

Fundrise

This platform lets me diversify my real estate investments so I’m not too exposed to any one market. I’ve invested since 2018 with great returns.

More on Fundrise in this post.

If you decide to invest in Fundrise, you can use this link to get $100 in free bonus shares!

Misfits Market

I’ve used Misfits for years, and it never disappoints! Every fruit and vegetable is organic, super fresh, and packed with flavor!

Use this link to sign up and you’ll save $15 on your first order. 

Photo: Google founders Larry Page and Sergey Brin. “File:Google page brin.jpg” by Ehud Kenan is licensed under CC BY 2.0.

Advertisement

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s