38. Why are VCs so adamant about warm intros? I‘ve learned 90% of warm intros are the biggest waste of time of all, unless they are “double qualified”. Why? Well, who makes warm intros? • Founders you know that just want to help other founders get funded. This sounds great except many founders have no idea what makes for a good venture investment. Really, no idea at all. • VCs that want to get you to fund the next round. OK, but often times it’s their mediocre / B+ investments. They don’t send you their crappy investments but... their very best investments already have term sheets. These founders don’t need any help from their earlier VCs. • Industry People. Lawyers, bankers, consultants, etc. Same as point one. They know the companies they like but often don’t know how to filter it. Then it gets even worse. Not only are these never great (often good but never great) start-ups, these unqualified or semi-qualified warm intros but then you have a social obligation. It’s someone you know that made the intro. If you take the meeting you have to explain why not, you get follow-up emails, it’s too much. It’s me, not you. So my learned rule is “double qualified.” What do I mean? I mean the intro isn’t enough even if the source quality is high. The source has to go further. If: • A founder you know is GREAT says this founder is GREAT and WHY, then meet. • A VC you know and trust says this is the best investment they’ve made in past 12 months, then meet. • An attorney, banker, etc. says this is the hottest company in their portfolio, then meet. • If any of the previous 3 aren’t met BUT the cold email is amazing and the founder got someone very high-quality to make the SAASTR.COM 34