Over the Thanksgiving holiday, I caught up with my 80-year-old uncle. He mentioned – I kid you not – that he’d like to start angel investing.

This is the world we live in. The investor space has exploded, and now everyone and their grandma (literally) wants in.

No joke – in 2010, there were about 1,300 active VC firms in the US. In 2023, that number skyrocketed to over 3,400. The angel investor scene has similarly gone absolutely bonkers.

You might be thinking, "Great! More money for startups!". And you’re not wrong. But this flood of competition means that capital is now a commodity.

So how can you rise above the noise, attract dealflow, and win allocation? That's what we're covering in today's edition of Small Bets.

VCs are media companies now

Picture this: You're a founder with a killer idea. You're scrolling through your feed, and BAM! You stumble upon an article that speaks directly to your startup challenges.

Who wrote it? A VC firm.

Suddenly, that VC isn't just another name on a list. They're a trusted advisor, a fountain of knowledge.

We've taken this approach at Hustle Fund, and it's paid off in a major way. Our three (count ‘em, three) newsletters accomplish quite a bit for us:

1. attract startup founders
2. attract LPs
3. build a strong brand + reputation

We are hardly the first people to invest in content.

Andreessen Horowitz (a16z) is basically the Netflix of VC content. Their "a16z Podcast" is truly binge-worthy. Their YouTube videos have tens or hundreds of thousands of views. I won't even get into their blog.

First Round Capital's "First Round Review" puts out consistently fantastic content, and has a subscriber list of over 200k readers.

It makes sense why VCs are moonlighting as media companies. Content allows VCs to:

1. show off their expertise
2. provide value to founders
3. build brand awareness

And it works. Creating valuable, unique content is a proven way to attract more dealflow and win allocation into hot deals.

VCs are community builders now

Content can help you share knowledge at scale. But there's something magical about human connection.

That's why our team invests heavily into events. We're targeting close to 50 events next year. Why? Because events allow us to showcase the vibes and personalities behind our fund. Again, we are not alone in this strategy.

"Startup School" is YC’s brilliant way to create a pipeline of potential investments while providing massive value.

Sequoia Capital's "Base Camp" is another example. Mentorship, resources, and a direct line to one of the most prestigious VC firms in the world. Not too shabby.

You may not see immediate returns by hosting events, but the value of enabling founders to connect personally with your brand is effective long term.

VCs are influencers now

When it comes to rising above the noise, it's hard to beat the scale and simplicity of social media.

At Hustle Fund, we leverage LinkedIn and Twitter (sorry, X) quite a bit. And now that we have hundreds of thousands of followers, it’s an investment that’s paid off.

When we ask founders how they heard about us, "Twitter" is one of the most common responses.

Other VCs and angel investors are doing the same thing. Having a sizeable audience is something you can leverage to win deals.

For example...

1. promote your portfolio companies. This can help them attract customers, investors, employees, etc.
2. re-share their content. Help your portfolios build their own audiences.
3. amplify your startups’ job opportunities.

Lightspeed does this well.

Social media may be evil, but hot damn is it a doozy. Some things you can try:

• host AMAs. Let founders pick your brain.
• try live (virtual) events.
• share behind-the-scenes glimpses of your fund. Humanize your brand.

Going beyond the check

A handful of years ago, a VC could offer capital to a founder and reasonably expect to win allocation into that deal.

But no longer. Now VCs are thinking about the value they can offer alongside their check. Angels are in the same boat.

Basically, we've gone from being just "investors" to being media companies, community builders, and social media influencers.

At Hustle Fund, we think about adding value to our portfolio founders in three ways:

1. Capital (obviously)
2. Knowledge (content, insights, expertise)
3. Networks (communities, events, connections)

This is our playbook.

As competition in the VC space continues to intensify (and it will), we can expect to see even more innovative marketing strategies emerge.

Holographic pitch sessions? AI-powered startup matching? Homemade cookies delivered to the founder's door? Why not?

No matter what shiny new tools emerge, the core principle will remain the same: Provide value beyond capital.

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