Sourcing is the first step in making early stage investments, and involves identifying projects that are of interest to the angel investor.
My takeaway from this section is the description of the 18 sourcing activities and how these activities help you sift your way through opportunities.
Preparation activities are things you might do to prepare for generating and managing the deal flow. Creating a well thought out “one-pager” is the best way to describe what kind of projects you are interested in and what you are willing to consider.
Networking activities are things you can do to develop and support your network. These are personal meetings with people like bankers, lawyers, or other angel investors. The goal is to share your “one-pager” information and build a network of referrals.
Visibility activities are things you can do to gain exposure and increase your credibility. These activities could be public appearances via interviews, speeches, or publishing an article/book.
Focus activities are tactics which narrow your targets and positively impact your deal flow. Having the discipline to focus on your network, or 1-2 industries of interest, or simply build a network within one industry, is an efficient way to get desired results.
For me, the “one-pager” is the most significant activity to begin the sifting process. Providing a summary of details and the key elements for the kind of deals you want to the type of people that can help you the most is the best use of time and effort.