Why Sourcing/Network Building is important for Juniors
To all the younger monkeys out there interested in VC - realize that sourcing is an important part of building your own network of deal flow, which is eventually what you will need as a partner. Now if you are in an arrangement where you source but aren't part of the investment process then I can understand frustration, but sourcing is literally an opportunity to network like crazy and build your own deal flow...not sure why so many people shit on having to source lol you think good startups should just come to you now that you are a "VC Investor".
I think a lot of people are looking at it the wrong way. You think you are smarter than 99% of people and will whip up some interesting analysis that your GP/MD hasn't thought of - Not likely. There are steps to a career in venture and I just don't see how you can be a solid VC investor without a solid proprietary deal flow. Obviously over time your role will change but accept it and don't try to act like a VP/Director as an analyst/associate from the start.
Build a solid deal flow / network [grow and nurture this network over time]> Watch & Learn how your seniors invest + build pattern recognition (obviously won't be the same for every company but deal dynamics, portfolio construction, etc. > In a few years you'll be in a position to make decisions like this and your network that you spent so much time building will yield high quality deals...or not. Careers are long and master each step along the way.
Lastly, don't compare yourself to your miserable PE friend trying to find the company tax EIN in the VDR. DD is also a skill but I'd argue 3-4 years building a strong network is way more beneficial than DD skills. QoE providers and 3rd parties are the real experts on DD anyway.
Hi Associate 1 in IB-M&A, check out these resources:
More suggestions...
Fingers crossed that one of those helps you.
Any tips on how to go about doing this? Cold emailing bankers, brokers, founders?
Do people eventually stop sending deal flow when you're as junior and not able to take the deal any further / passing on every deal opportunity that comes in?
How should we look to market our network and deal flow to potential VCs? Is it valid to bring it up in an interview and tell them what kind of a network you have or what deals come in?
I would be start with penetrating hot points for deal flow. Find some people that are well connected in the venture space and offer to be helpful in anyway. Example for me that has yielded two deals that my fund is investing in is a partner with a design studio that works with a lot of healthcare startups. I send him every founder that could be in need of design work + he sends me super interesting deals.
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so how do i nurture my network?
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