The Greatest VC Hack- Expert Networks
One of the most incredible VC hacks I stumbled across this year was the usage of expert networks. Expert networks are advisory firms with thousands of C-level executives in varying industries available for phone calls for due diligence and market research.
I used Guidepoint, one of the largest networks, to diligence two different software companies. I targeted people who evaluated the company’s solution vs. its competitors and got a complete breakdown of the use case, quantifying ROI, and the buying cycle. I was also able to get information on what other solutions the buyer pays for from a software perspective.
As a generalist investor, I find it challenging to evaluate all the different solutions in the marketplace with my network alone. I need a solution to help me get in contact with the right people. Expert network solutions are expensive, and calls go up to $1,000-$1,300 per hour. I find this a small price compared to making a $2M mistakes.