VCs scout social media for bets

Early-stage venture capital firms are turning to influencers to create their own moat, IPs and brand identity

- Pratishtha Bagai

Faced with intense competition, even as access to capital has become democratised, early-stage venture capital firms want to create their own moat, IPs and brand identity.

This move is forcing VCs to turn influencers with the help of social media agencies.

Instead of relying solely on traditional offline avenues like networking events, VCs are now investing in digital marketing. Some are even hiring dedicated in-house teams to build a stronger online presence instead of outsourcing to a marketing agency.

To be sure, these firms continue to use traditional methods to source deals. On average, any mid-sized to large VC fund meets thousands of startups each year. Most VCs end up backing anywhere between 20 and 30 startups through a fund's cycle.