PitchBook sucks - need help sourcing

Navigating the challenges of sourcing without relying heavily on PitchBook can indeed be a daunting task, but there are several strategies you can employ to enhance your deal sourcing efforts. Here are some insights and ideas based on the most helpful WSO content:

1. Leverage Other VCs: Building relationships with other VCs can be a goldmine for sourcing deals. They often have access to deals that might not be the right fit for them but could be perfect for you. Networking and sharing potential leads can be mutually beneficial.

2. Scouting Affiliate Programs: Some VCs have found success by setting up scouting affiliate programs. These programs trade free deal flow for a line on the affiliate’s resume. It’s a creative way to tap into new networks and find startups that might be flying under the radar.

3. Utilize Vendors: Your portfolio companies use various vendors, which are likely also used by other VC-backed startups. Vendors such as attorneys and accountants who specialize in patents, cap tables, company registration, etc., can provide introductions to their other startup clients or to other VCs they work with.

4. Intelligence Reports and Publications: While some intelligence reports like those from Gartner are expensive, they can provide valuable insights. Additionally, keeping an eye on VC blogs and publications like the AgFunder report can reveal emerging trends and startups.

5. Awards and Competitions: Tracking awards like the Red Herring or Gartner’s Cool Vendors can highlight startups that are gaining recognition in their fields. These companies are often looking for the next round of funding and can be great sourcing opportunities.

6. Networking and Events: Never underestimate the power of networking. Attending industry events, conferences, and pitch nights can put you in the same room as potential investment opportunities. Engaging with the startup ecosystem in your target regions or sectors can yield fruitful connections.

7. Social Media and Online Platforms: LinkedIn, Twitter, and specialized online forums can be excellent resources for discovering and connecting with startups. Many founders and entrepreneurs share their ventures and achievements on these platforms, making them accessible for initial outreach.

8. Create a Thematic Focus: High IQ sourcing involves building real thematic knowledge around areas of mutual interest between you and your firm. Becoming a domain expert in specific verticals allows you to identify high-quality businesses more effectively.

Remember, sourcing is as much about quality as it is about quantity. By diversifying your sourcing strategies and being proactive in your approach, you can uncover valuable opportunities that others might overlook.

Sources: Your best sourcing tips, Why The Hate on Sourcing?, HF to PE post-MBA - my story and seeking advice (long-time poster)!, Why The Hate on Sourcing?, Idea Generation... and Why Wall Street Sucks at It