While every VC has a network, true sourcing edge comes from building a brand and belief system that resonates deeply with founders. This makes founders proactively seek you out, creating a high-quality inbound channel with deals that competitors aren't seeing, allowing a small fund to punch above its weight.
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VCs who spin out of tech giants like Airbnb have a powerful initial network. However, this edge typically expires after their third fund as original colleagues move on, forcing them to build a more durable, independent network to source deals.
Over 80% of TA's investments are proprietary deals with founders who aren't actively selling. Their strategy focuses on convincing profitable, growing businesses to partner to accelerate growth, framing the decision as "partner with us" versus "do nothing." This requires a long-term, relationship-based sourcing model.
Competing to be a founder's "first call" is a crowded, zero-sum game. A more effective strategy is to be the "second call"—the specialist a founder turns to for a specific, difficult problem after consulting their lead investor. This positioning is more scalable, collaborative, and allows for differentiated value-add.
In private equity, capital is the ultimate commodity. The most effective way to differentiate is through deep, singular industry specialization. This expertise generates inbound deal flow, allows for unique value-add post-acquisition, and creates a memorable brand that resonates with sellers.
To create a durable sourcing engine and avoid brand dilution, Premise VC builds event series as separate sub-brands. These 'products' have compounding value, like giving past attendees priority access, creating a self-perpetuating funnel of high-quality founders.
Startups can't compete with established leaders on credibility, but they have a unique advantage: access. Position your offer not as being "better," but as providing direct contact with the founder, contrasting it with the impersonal, multi-layered support of a large corporation.
In today's market, 90% of VCs chase signals, while the top 10% (like Sequoia or Founders Fund) *are* the signal. Their investment creates a powerful self-reinforcing dynamic, attracting the best talent, customers, and follow-on capital to their portfolio companies.
An investment firm can build a powerful inbound deal flow engine by creating media like podcasts and consistent social content. This allows the firm to be more selective with its investments, which in turn becomes a core part of the value proposition to its own investors.
Most VCs "gather" by networking broadly. QED advocates for "hunting": identifying a single, high-conviction company and relentlessly pursuing an investment. This shifts the mindset from passively waiting for inbound leads to proactively targeting the absolute best opportunities long before a formal fundraise begins.