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- Short Description: One can increase dealflow and ability to win deals by becoming famous. You can be “really actually famous” (like a sports or movie star) or you can be “VC famous” by being known among investors and founders. You can become famous among investors and founders by being involved with a legendary company or technology. Or you can pick a platform and go for it: blog, Twitter, podcast, short-form video or TV. A twist on this approach is to partner with someone who is famous or willing to work on being famous.
- Benefits:
- Increase Dealflow: Staying top of mind for founders and other investors is key for hearing about companies.
- Additional Value Add: If you can amplify the companies message for increase top of funnel sales and candidate leads, that can add additional value to your investments. Also, mentioning your involvement may help in convince candidates to join the company.
- Win More: Beyond any added value, many people will be excited to work with a famous person.
- Better Terms: Because you may add more value and because of the fun of working with someone famous, you may be able to get better investment terms. It does depend on the market conditions.
- Trade-offs:
- Increase in Low-Quality Dealflow: Yes, you will get more deal flow. But then you have more deal flow. All kinds of deals will come your way including low-quality or even crazy stuff.
- Takes Time: Depending on how you approach it, becoming famous or staying visible can take time to generate content. Speaking out or writing can be helpful to clarify your own thinking. So we can dialogue with others. But you won’t be spending that time on other activities.
- May Interrupt: Depending on your platform and nature of your fame, you may be interrupted to keep feeding the fame or respond to inbound inquiries.
- May Impact Relationships: There may be some uncomfortable moments with people you know who treat you differently after you become famous. You may question people’s motives or have more concerns about confidentiality.
- Examples:
- Marc Andreessen
- Joe Montana
- Brad Feld
- Paul Graham
- Mark Suster
- Harry Stubbings
- Chris Sacca
