Outbound VC Sourcing: Why the Best Funds Reach Out First

The default mode for most VCs is passive: wait for warm intros, respond to inbound, attend demo days. The most successful funds operate differently. They identify companies proactively and reach out before the founder is fundraising. This outbound approach creates structural advantages that passive sourcing cannot match.

Why Outbound Works in VC

Timing advantage. When you reach out to a founder before they are fundraising, you have no competition. You are building a relationship, not bidding in an auction. By the time the company is officially raising, you have months of relationship context that latecomers lack.

Signal-driven conviction. Outbound reach means you have done your homework. You have identified the company through signals, researched their progress, and formed a preliminary thesis on why they are interesting. Founders notice this. It is dramatically different from the generic "I'd love to learn about what you're building" email.

Portfolio construction control. Passive sourcing means your portfolio is shaped by whatever walks in the door. Outbound sourcing means you systematically cover your thesis universe and invest in the best companies across it.

The Outbound Playbook

Step 1: Signal Identification

Use Ted or equivalent signal monitoring to identify companies showing breakout patterns within your thesis. Focus on the combination of signals, not any single data point. A company with hiring velocity AND traction AND product launches is a stronger signal than any one of those alone.

Step 2: Research

Before reaching out, build context. What are they building? What problem do they solve? Who are the founders and what is their background? What is the competitive landscape? What specific signals caught your attention?

Step 3: Value-First Outreach

Your first message should offer value, not ask for a meeting. Share an observation about their market. Offer an introduction to a potential customer or hire. Reference a specific signal that caught your attention. Demonstrate that you have done your homework.

Step 4: Relationship Building

Do not pitch. Build. Share relevant articles. Make introductions. Offer to help with specific challenges. The goal is to become a trusted advisor before the fundraise begins.

Step 5: Natural Conversion

When the company is ready to raise, you are already in the conversation. You have relationship context, demonstrated value, and a head start on diligence. The conversion from relationship to investment happens naturally, not through a cold process.

Outbound Volume

The math matters. To maintain a healthy pipeline, target:

• 10-15 new outbound contacts per week
• Focus on companies within 6 months of a likely fundraise
• Expect 30-40% response rates (much higher than cold email in other contexts, because VCs reaching out to founders is inherently interesting)
• Aim for 3-5 deep relationship conversations per month

The Ted Advantage

Ted makes outbound sourcing systematic by delivering scored companies daily. Instead of spending hours scanning databases and newsletters to find outreach targets, you review your morning email, pick the highest-scored companies, and reach out. The sourcing work that used to take 15 hours per week takes 30 minutes.