Bill Burnham writes:
In such a competitive and complex environment the most promising way for VCs to ensure themselves of rising above the tide is to move from a passive deal-flow based approach to a proactive thesis driven investment approach. This approach stresses taking the initiative to develop an investment thesis based on focused expertise and then using that investment thesis as the basis for a directed deal acquisition campaign designed to either ferret out those existing start-ups that fit into this investment thesis or to help create new companies that can take advantage of an identified opportunity.
In this model, VCs do not passively sit back and let deals come to them, but they go and out and turn over rocks actively looking for deals that fit their investment thesis in a particular space. VCs, even ones with no brands and experience, can compete with this strategy due to two simple facts: 1. Entrepreneurs respect VCs that understand their market space/business. 2. Entrepreneurs rarely refuse to talk with VCs that proactively call them and tell them that they are potentially interested in investing in their business. The goal is not to wait for companies to come and ask for money, but to find good companies in good spaces and then try to find a way to put money into them when appropriate.
In a way, I am doing exactly that in trying to build out the Emergic ecosystem. More on this soon.