Sourcing: Be Networked

Short Description:
- Being part of a relevant network of people can be a great source of potential deals. Founders referred by others in the network come with a higher level of trust, ability and may be better matched. Examples of networks include business schools, tech companies, and communities/events founded by the GP.
Benefits:
- Higher trust deal flow
- Screened for values and/or interest and perhaps the ability
- Understandable sourcing strategy to explain to LPs
Trade-offs:
- It can take time to create or become part of a relevant network. If it is already part of one’s background or something that one already wants to do, that may not matter, but if it is not then joining a tech company or founding a community in order to improve deal flow, may not be the worth the time.
Examples:
- “PayPal Mafia”
- Homebrew
- Hustle Fund