Warm introductions are still the best way to meet an investor, however, scrappy venture capitalists know that ideas can come from anywhere – including from outside of their network.
The venture capital industry exists because of entrepreneurs but it you’re an entrepreneur you’d hardly think you existed in the eyes of VCs. And you’d be partially correct is your assessment. The greatest startup challenge after product/market fit or traction may simply be getting a coveted warm introduction to a Union Square Ventures, Kleiner Perkins or other top firm. While venture capital may be not be the primary source of startup funding, it continues to be the most highly sought after. Andreessen Horowitz for example, only considers startup pitches which come through its network and of the several thousand pitches receives each year through this trusted deal funnel, several hundred are taken seriously by the firm to warrant additional diligence and perhaps a meeting with the founding team. At the end of day, the firm it makes approximately 15 investments a year.
If you’re an entrepreneur, the odds of securing a meeting are not in your favor but from the VC side, what are the chances you’re overlooking a game-changing investment simply because it is outside of your network?>>> READ MORE at: