Reputation Compounds Deal Flow

A strategy for building investment deal flow through reputation and relationships, focusing on how successful investors get access to the best deals.

Core Strategy for Deal Access

• Startups are unique as an asset class - the security selects you as much as you select it
• Must build brand/reputation to get into the best deals
• Best deals are highly competitive and selective

Key Sources of Deal Flow

• Podcast/Media Presence

  • Creates inbound opportunities
  • Builds public reputation

• Relationship Networks (40-50% of portfolio)

  • Friends who are domain experts
  • Regular communication with key players
  • Example: Kraft Ventures relationship through partner Ramin
  • Bi-weekly coffee meetings and constant note trading

Investment Themes Approach

• Identify promising themes/sectors
• Aggressively pursue multiple investments in that space
• Example: Neobank Strategy
  • Identified digital banking trend
  • Invested in multiple geographic regions
  • Examples: Keep (Canada), Pluto (Middle East)
  • Look for best companies in each geography/customer segment

Geographic Focus

• Build specific regional expertise
  • India connections
  • Southeast Asia relationships
  • Different partners focus on different regions

Deal Evaluation Process

• Look for key metrics
  • Recurring revenue
  • Market potential
  • Customer satisfaction gaps
• Focus on companies pre-marketing strategy
• Evaluate based on current traction and future potential

Relationship Building Tips

• Regular check-ins with partners (every 2 weeks)
• Share deals reciprocally
• Build expertise in specific niches
• Maintain active relationships in target markets