The founders of today’s hip and high-tech start-ups keep getting younger, and those in venture capital jobs are finding it tougher to get face time with these young entrepreneurs without using a few tricks themselves.
Forty-somethings and above risk being shut out unless they develop unique new methods. One venture capitalist took to developing his own private “social network” to get to know and cultivate founders as prospects for investment, according to a recent story in Venturebeat. He identified friends of his who were in their mid-thirties, people he already socializes and hangs with. They, in turn, introduce him to up and comers in their networks who are even younger and working on the next Big Thing. So far it’s lead to 10 potential deals.
It used to be that entrepreneurs would bang on the doors of venture capital managers in Silicon Valley and Route 128 in Boston, and pitch their business ideas. It still happens, but savvier investors today are being more proactive in sniffing out potential blockbusters. They are sending out their younger associates to events and academic centers, to eventually make the introductions to the older partners in the venture capital firm.
Today, with many entrepreneurs dropping out of school at 19 or 20 to pursue their dreams, the VC community has had to step up its efforts to connect with these early-stage diamonds in the rough.
According to the Venturebeat article, Polaris Ventures, created Dogpatch Labs in Cambridge, San Francisco and New York to provide resources and venues to meet and nurture exciting new companies. General Catalyst has a team of very young and talented professionals to aggressively seed great new companies. And there are now LinkedIn discussion groups covering everything from raising money, finding talent and subletting space.
In an innovative industry, the investors themselves have to innovate, too. How about you? Add your comments below.
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