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Patterns and Models

Browse recent posts cataloging startup patterns, venture capital patterns, and mental models.

VC: Run Contests

Short Description Running a contest where you “give” away investment as a prize can attract attention. The contest approach works best at the earliest stages of company formation. If you do not want to take full responsibility for the logistics of the contest, you can sponsor or judge for someone else’s contest. You can also […]

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VC: Build Software

Short Description: Build Software is the strategy of creating software for founders or startups to get startup leads or build your brand. Examples of software categories include helping with fundraising or forecasting cashflow. Software that has some network effect or virality may be the most helpful in generating low-cost leads and getting greater coverage. The […]

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VC: Host Events

Short Description: By acting as a convener for events, you can put yourself in the flow of ideas, people, and deals. These events can be closely related to investment themes or more broad. Events can vary in size and complexity from 10-person meals to 1000+ person conferences. When you Host Events, you are more focused […]

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VC: Find Companies with Data

Short Description: Most VC sourcing strategies are about generating referrals or inbound interest. Instead, this approach is to find companies using data before they find you. Using data, you identify which companies are growing or appear promising. Data sources may include: tracking web traffic, app downloads, or purchase data from credit cards. A more sophisticated […]

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VC: Content Marketing

Short Description: Content marketing is when a VC publishes articles, podcasts, videos, lists, or other content. As there are more VC firms and they want to distinguish themselves from each other more of the marketing playbook becomes standard. Common objectives are to build a brand and drive dealflow. This sourcing strategy can overlap with Be […]

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VC: Focus on a Geo

Short Description Focus on a Geo is when a VC invests in companies headquartered in the same area. When you have an explicit regional focus, it is easier to understand which deals to send you. Governments, philanthropies, or local enterprises are often LPs in these VCs. It is worth contrasting an explicit geo focus sourcing […]

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VC: LPs as Sourcing

Short Description: You can find startup company leads from your fund investors. LPs as Sourcing is more often part of a larger sourcing strategy rather than the primary sourcing strategy. Benefits: Alignment: Because you are investing their money, LPs are   aligned with your interests.  They are less likely to send you something they know […]

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VC: Invest in Other Funds

Short Description By investing in other VC funds at an earlier stage, you can generate dealflow and learn about the market. You can make this investment personally or through your fund. When you invest in another  fund, you can build a close relationship with that manager and understand their thinking better. That will help you […]

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VC: Be Successful

Be Successful Short Description: Success as a venture capitalist is great for deal flow. When a founder sees that you were an investor in or board member of a successful company, they are more likely to approach you. While there is a debate about the degree persistence of performance across funds, there is less debate […]

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VC: Be Fun

Short Description: To attract more deal flow, some investors take the approach of throwing parties or being at the center of a social circle. Benefits: Building Trust: By building relationships that are not directly about work, you can build trust with a wider variety of people than those you are directly doing deals with right […]

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