Sourcing is a critical aspect of a VC's success, with traditional methods relying on personal networks, while newer data-driven approaches are gaining popularity.
Firms like SignalFire use data-driven sourcing, tracking millions of companies and data points to identify growth patterns, offering proactive opportunity sets.
Due diligence involves thorough assessment, including data requests, team evaluation, and transparency, crucial for building trust.
VCs focus on value creation, leadership qualities, and avoiding biases during the diligence process to find strong investment opportunities.