- Description
- Include a successful founder in the pitch to the prospective portfolio company. The founders may be Venture Partners or may be more loosely affiliated with the firm. For example, it might involve the successful founder taking the prospective portfolio company founder out to dinner.
- The approach work best when the founder talks about working with the firm either (a) to help other companies or (b) as a portfolio company that became successful.
- You may combine Founders with Pitch Value Add or Focused Brand. Or you may use the the tactic on its own.
- Benefits
- Success is attractive. Founders at the target company enjoy being near success and hope that it rubs off on them.
- Some founders feel more rapport with another founder than with an investor without that background.
- Trade-offs
- Earlier in a firm’s life, finding the right founder is harder. Without successful exits from the fund, there may be fewer founders who feel a connection.
- You will want to maintain an excellent relationship. Otherwise, they may not represent the VC well.
By Miles Lasater with Julian Jacbos