How I Manage My Pipeline By Scouting Earlier

I get highly frustrated at startup conferences. Sadly, it seems that the companies that meet my investment profile already have lead investors and are just filling out the remainder of their rounds. It’s like being late to the party and missing out. Sometimes I get so bent out of shape that I want to pick up my ball and go home.  However, persistence and discipline are what makes a good investor, so I put down my head and carry on.

I can’ t let a lack of immediate investment opportunities entice me into bending the rules of my investment parameters. FOMO (fear of missing out) is omni-present. I could relinquish and be a passive syndicate investor to avoid losing out on a potentially good opportunity.

However, I continually remind myself that this is a relationship game. These companies have lead investors because their leads had relationships with them before they reached my stage requirement. I must continually focus on the fact that these conferences and startup pitches allow me to develop a pipeline for 6-12 months down the road. It is unrealistic to expect to show up and find a perfect deal by paying a $200 admission fee. There are no shortcuts.

Early-stage scouting has become a “thing” in the Silicon Valley ecosystem. Top-tier venture funds recruit college grads willing to work for free to provide deal flow with hopes of eventually getting in the analyst role. Creating false hopes for young, ambitious college graduates isn’t my style; however, the act of scouting the earlier stage landscape has become a key part of my strategy.

Aside from events, I have decided to become a customer of Tempe-based Seedscout. I am a fan of Mat Sherman and his work evangelizing startups. Hopefully, with persistence, we will be able to find some keepers before the next conference season!