Sourcing Tips: How to utilize LinkedIn to find startups

Hi! I’m glad you’re here. You’ve made it to issue #20 of VC Demystified🪄.

My name’s Nicole - I’m a Principal at an early stage venture fund, and I know firsthand that VC can often be a black box. Breaking into the industry may feel daunting and resources can seem scarce and inaccessible. I wanted to put together a newsletter to give others the playbook I wish I had when I first started.

I can’t believe this is the 20th newsletter already. What a journey! If you’re new here, be sure to check out the previous deep-dives I’ve done here. A trick - use the search function to look for any specific topics you want to learn about.

Today’s deep dive: How current & aspiring VCs can effectively use LinkedIn to source promising startups

My personal mission is to open as many doors as possible for other people and this newsletter is just one avenue to do that. As always, I will continue to post VC insights daily across my socials for those of you who prefer those channels.

How current & aspiring VCs can effectively use LinkedIn to source promising startups

One of THE hardest parts of being a VC is sourcing.

Sourcing is about figuring out where and how you can find the next unicorn founder and idea. It could be your neighbor, it could be someone you met at an event, it could be someone you previously worked with and so much more.

If you were to ask the investors in unicorns like Airbnb, Uber, Stripe, and DoorDash where they sourced those deals, every answer would be different.

This is why sourcing is so hard. Everyone has a different approach and there is no right or wrong way.

There are two ways to classify sourcing: 1) Outbound 2) Inbound

This is self-explanatory but outbound is more active sourcing where you find and reach out to a founder and inbound is more passive sourcing where the founder reaches out to you directly or someone in your network sends you the startup.

As a new or aspiring VC, majority of your sourcing will be outbound.

As such, you need to start getting creative on where to find new founders with the resources you have.

Enter LinkedIn.

Believe or not, LinkedIn is a goldmine for spotting promising companies - if you know how to use it the right way.

In this post, I’ll break down exactly how you can use LinkedIn to source new deals.

Here’s a sneak peek of what you’ll learn:

• How to tweak your profile so founders know what you’re focused on

• Advanced search techniques to find early-stage startups before others

• Tips for engaging with founders in a meaningful way to build connections

• How to use tools like Sales Navigator and startup groups to stay ahead of the curve

Let’s get into it!

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