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Looking for VC funding? This Houstonian says to connect with venture fellows

Need an in with a venture capital firm? Here's an idea. Photo via Pexels

Every venture capitalist is searching for the next greatest startup that can change the world — as well as provide a sizable return on their investment. Everyone knows this. And because everyone knows this, most entrepreneurs are sending their pitch decks and executive summaries to venture associates and deal leads. But, I'd like to propose that every entrepreneur who's interested in raising capital begin to pitch their startups to venture fellows, college-aged students who work with investment firms.

I am a venture fellow at New Stack Ventures where my main objective is to source investment opportunities. During my tenure as a venture fellow, I have been sifting through online resources — from Crunchbase and AngelList to LinkedIn — with the hopes of finding a really neat startup that would earn an investment from New Stack Ventures.

A few weeks ago, Crunchbase had run dry of Houston startups that I hadn't reviewed. Because of this deal drought, I posted in the Houston Startups Facebook Group, asking if anyone had any startups that might fit our pre-filter criteria, and I was introduced to 15 startup founders in a matter of minutes. I posted again in the Austin and Dallas/Fort Worth Startups Facebook Groups with similar results.

These experiences showed me that there are several hidden startups that need funding. And there are several venture fellows that need to meet deal quotas and strongly desire to source a startup that earns an investment from their firm. So, perhaps, we could marry these two groups and help them both succeed.

Here are three tips for connecting with venture fellows.

1. Find your firm fit.

VC-RANK.com allows you to compile a list of best-fit venture capital firms for your startup. You can begin with your curated list. You likely won't find venture fellows on the firm's "Team" or "About Us" pages, so you might have to do some digging by looking at the firm's LinkedIn page and their employees.

If your curated list of VC firms doesn't happen to have venture fellows, you can always try reaching out to venture fellows from these firms: Open Scout, Ripple Ventures, .406 Ventures, Crescent Ventures, Alley Corp, and Fin Venture Capital.

2. Share your startup with several venture fellows.

Through a quick LinkedIn message, you can share your startup by including your company website, your contact email address, and your basic raise information (i.e. How much have you previously raised? How much are you raising right now?).

3. Await further communication.

I can't speak for all venture fellows, but most of us are just college kids who have been given the opportunity to learn a whole lot at VC firms. Contacting venture fellows can be a great (and low-risk) way to get your company's name immediately on the list of potential investment opportunities for your ideal firm. And, you would be helping any venture fellow out by making the effort.

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Christa Westheimer is a Rice University student and the managing director at Rice Ventures. She is a current venture fellow at Chicago-based New Stack Ventures.

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Building Houston

 
 

Kerri Smith of the Rice Alliance joins the Houston Innovators Podcast to discuss Rice's Clean Energy Accelerator. Photo courtesy of Rice

Kerri Smith knows accelerators. Through her over 18 years at Rice Alliance, she's been responsible for overseeing several and was on the founding leadership team of Houston's first energy tech startup accelerator, SURGE. After years of focusing you accelerating Rice University's student-focused program, Owl Spark, she's transitioned back into the energy tech space.

"I've worked with many types of founders. There's not one unique characteristic that everyone has," Smith says on the Houston Innovators Podcast. "Our goal is to help move them along and help them move the needle. At the end of the day, we want them to have a good experience and to meet their goals and objectives."

The Rice Alliance's Clean Energy Accelerator launched last summer with its inaugural cohort of 12 cleantech startups, which represented energy sectors from solar and wind innovations to hydrogen, geothermal, and more. Smith says the startups represented a wide range of stages and were from all over — only two companies were from Houston originally. The out-of-town companies were able to make critical partnerships in town and set up a presence and a home here.

"We were able to build a family-like culture among our group, and that was something that was wildly appreciative," Smith, who serves as executive director of the program, says.

Applications for Class 2 of CEA are open until May 31. While the program will offer the same access to mentorship and opportunities, the program will change slightly. CEA will focus on seed and series A-stage companies and will be a hybrid program. Throughout the 10 weeks, which begins in the fall instead of the summer this year, founders will visit Houston three times at the beginning, middle, and the end of the accelerator. Each startup will receive a grant to cover the expenses of the equity-free program.

CEA is just one part of a greater ecosystem of innovation under the umbrella of Rice University, which includes the Rice Alliance for Technology and Entrepreneurship, the Liu Idea Lab for Innovation and Entrepreneurship, The Ion Houston, Owl Spark, and more. All these entities also play into the greater Houston area's innovation ecosystem.

"Rice Alliance has a strong history of demonstrating collaboration with a number of organizations," Smith says. "I think one of the primary benefits that we have in these collaborative opportunities is to ensure that we are collectively building a capable and diverse pipeline of talent to solve for these problems and provide them with access to experiencing all of the benefits of our ecosystem."

With CEA specifically, some of these collaborations include working with Greentown Houston, which is just next door to the program's home at The Ion, and the Greater Houston Partnership's Houston Energy Transition Initiative.

"We're a cog in the wheel. We do really well with that. We play well with others – in ways that the founder has a good experience and can benefit," Smith says.

Smith shares more about what she's looking for in the second cohort of CEA on the podcast episode, as well as what she sees as Houston's role in the energy transition. Listen to the full interview below — or wherever you stream your podcasts — and subscribe for weekly episodes.

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