The Importance of Proprietary Deal Flow in Early-Stage VC

Both Sides of the Table

What kind of deals should I be doing? One of the major calibration pieces for me was where to find deal flow. As a VC you want to feel like you have “proprietary sources” of deal flow. Of course I went through normal other channels of deal flow.

Paying Attention To Inbound Deal Flow

Haystack

About a month ago, I wrote a post about how the Bay Area seed ecosystem is generating deal flow levels that are nearly impossible to keep up with. In the post, titled “ Seed Deal Flow Tsunami And The Quick Kill ,” I attempted to explain how, in the face of the deal flow firehose, I get to a quick “no” which I hope is helpful for both sides. If a deal comes across my desk that has even just one of those things, I do pay attention.

Seed Deal Flow Tsunami And The Quick Kill

Haystack

As a result, I personally cannot keep up with all the deal flow. Surely, some will read this as unfair, and I understand that — so I wanted to write this post about how I sort through all the inbound deal flow and how my brain has been trained to fixate on certain threads and ignore others. To underline, this is for cold flow or lukewarm intros. If you read yesterday’s post, you can see just how insane the proliferation of seed financings have been.

Webinar: New Techniques for Measuring and Boosting Private Equity Deal Flow, 6/27 11am ET

David Teten

Most private equity professionals fail to see even a majority of the potential deals flowing through their target markets, according to the latest research. Suggested background: Deal Origination Best Practices. The post Webinar: New Techniques for Measuring and Boosting Private Equity Deal Flow, 6/27 11am ET appeared first on David Teten.

My Secret Source of Deal Flow

A Crowded Space

—— This deal came through a back channel diligence call. I believe that these calls have two very significant benefits that make them good sources of deal flow. . It’s not demo days. It’s not AngelList. It’s not lawyers or bankers. It’s the stuff that happens behind the scenes. Due diligence calls. —— I recently led a $2M Series A investment for my firm, Sigma West.

Why We Pass Quickly On Things

Feld Thoughts

Sure, we’ll miss some great opportunities, but that is fine as long as we believe (a) there are more than 10 great potential companies for us to invest in each year and (b) our deal flow dynamics are such that we see a lot more than the 10 we end up choosing to invest in. Based on our current deal flow dynamics, if we had unlimited time, unlimited capital, and unlimited partner resources, there are at least 100 companies each year that we would invest in.

How To Respond To A Cold Call Email From An Associate At A Big VC Firm

Feld Thoughts

They end up on the calling (now emailing) lists for a bunch of VC firms who have an outbound deal flow program. Recently, I’ve been forwarded a few of these emails from CEOs of companies I’m an investor in with the question “how do I deal with this?” VC Financing associates deal flow vc financingWe have investments in a lot of companies that are growing very quickly.

Email 310

DealMarket.com – Making Private Equity A Big Deal

YoungUpstarts

DealMarket ( www.dealmarket.com ) is a new online one-stop shop that brings together private equity investors, deal providers and advisors where they can get an unfiltered view of the global private equity deal market.

Are young VCs better VCs?

VC Adventure

Finding The Right Angel Investor For Your New Venture

Startup Professionals Musings

This software platform is used by many local angel organizations for managing deal flow. If your startup is looking for an angel investor, it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up. Or does it?

Leadership is More Than a Memo

Steve Blank

Chasing deal flow has resulted in many VCs leading the race to the bottom in startup ethical behavior. I just read Brotopia: Breaking Up the Boys’ Club of Silicon Valley. It was both eye-opening and cringe-worthy.

Second Order Impact of FG Angels

Feld Thoughts

FG Angels has helped us address all of our major angel-herding challenges through the following: FG Angels increased the amount of capital our group has committed since our official founding in 8/13 by 103% which will certainly help us with deal flow, member acquisition etc.

Sharp Elbows Among Seed VCs

View from Seed

These funds would regularly share deal flow with one another and could share the work in supporting founders and helping to push the company forward. 15–20 years ago, a standard series A deal was split between two funds that each took half the round.

Why Female Founder Office Hours is So Important

Both Sides of the Table

Deal Flow I often talk about how I think the best VCs “ play offense ,” by which I mean proactive go out and find a market segment or niche that they uniquely know, can uniquely serve or have some other natural advantage and go out and find deals you like.

International Women’s Day #StartWithEight #MovingForward

Feld Thoughts

The idea there is that “the dynamics will change when capital flows equally to any talented founder, no matter his or her gender, race, sexual orientation, or any other characteristic.” For many VCs, deal flow is extremely network driven and often our networks look a lot like us. Today is International Women’s Day (“IWD”) which dates back to 1909, although the UN did not start celebrating IWD annually until March 8, 1975.

AngelList Syndicate Feedback From An Experienced Entrepreneur

Feld Thoughts

For the investors, the clear benefits are: 1) Access to deal flow they wouldn’t otherwise get. We recently funded Blinkfire Analytics using our FG Angels Syndicate. The CEO and founder, Steve Olechowski , was co-founder / COO of FeedBurner, which Google acquired in 2007.

Why Early-Stage VCs Should Be Careful About Intros from Bankers

Both Sides of the Table

What kind of deals should I be doing? One of the major calibration pieces for me was where to find deal flow. As a VC you want to feel like you have “proprietary sources” of deal flow. Of course I went through normal other channels of deal flow.

Echolocation

Haystack

I was catching up on MG’s newsletter/blog and came across this opening line , which got me thinking about a concept in investing, specifically in deal sourcing: To me, all information is about triangulation. Now that there are so many new companies started, so much money in the ecosystem, and new types of funds out there, deal velocity is increasing. To find signal in all the noise of that deal flow stream, “who” the source is certainly matters.

Austin’s Venture Capital Investment Deals Drop 7 Percent in 2016

SiliconHills

By LAURA LOREK Reporter with Silicon Hills News Venture capital investments in Austin dropped 7 percent in deal flow to 112 deals and $834 million invested in 2016, down 3 percent, compared to the previous year, according to the MoneyTree Report from PricewaterhouseCoopers. market which saw a drop of 16 […] The post Austin’s Venture Capital Investment Deals Drop 7 Percent in 2016 appeared first on SiliconHills.

Foundry Group Next

Feld Thoughts

It’s also been fun – a great way to get close to new managers, build lasting personal relationships, and see deal flow for our Foundry Group investing activity. Over the years at Foundry Group we’ve built an extensive network of companies. While we’ve invested in some of these directly, this actually represents the smallest set of companies that we are involved with. We have also invested indirectly in many others through our investment in Techstars.

Accessibility as an Advantage in Venture Capital: Why Creating Value for Everyone in the Community Wins

This is going to be BIG.

Opening up our circle to create and scale genuine engagement for people outside of typical venture networks is how we do business—and we’re getting exceptional deal flow because of that. Venture is all about access—getting the best deals.

Find an Angel Investor, Without Going Through Hell

Startup Professionals Musings

This is perhaps the most reliable source of information on angel investor groups across the world, and the software is used by most of the other angel organizations mentioned below for deal flow.

Questions a Potential Venture Fund Limited Partner Should Ask

This is going to be BIG.

Does the firm have access to quality deal flow? I have a draft deck put together for a next Brooklyn Bridge Ventures fund. I pretty much hate it. Don't get me wrong--the numbers look great. That's not it. It just doesn't really get at what's really important. I wasn't sure exactly how it missed, so I went back to first principles. What *is* really important for a venture fund?

The Truth About Investor Updates

Haystack

I spend a good deal of time sharing deal flow up and downstream with Series A and B investors, and when they ask me about opportunities coming down the pipeline in 6-12 months, I usually share what I’ve been told from the founders themselves over email or phone — I become their subtle pitch man. The topic of “investor updates” has been debated frequently.

CO Impact Days: Unicorns, Zebras, Ponies, and Donkeys

Feld Thoughts

And Gripne’s paper, Laying the Groundwork for the National Impact Investing Marketplace , makes the case that the reason we do not have $1B impact funds for nonprofits, immigrants, and women, is not because we do not have $50M of institutional quality of deal flow. VCs love to talk about Unicorns, where a giant return is possible.

Report Examines Where the Top VC Firms Are Investing

ReadWriteStart

in terms of their deal activity. According to that report, over the past year the top 30 firms participated in 663 unique deals (almost a quarter of all deals) with amounting to almost $9 billion in investment.

Angel Investing (1): Dealflow – Are You Sitting at The Right Poker Table?

Both Sides of the Table

Access to the best deal flow – I think the most obvious thing you need to be successful is access to the right deals in the first place. Do you have access to that kind of deal flow? Deal flow alone is not good enough. Executive Summary.

Does Alternative Finance Exist In Singapore And Hong Kong?

YoungUpstarts

Combined, these two nations contributed about 95 per cent of deal flow in the region during 2010. According to a report by Grand Thornton 2 , crowdfunding platforms in China made up 28 per cent of global deal flow between 2011 and 2013.

[US] Startup Atlanta Looks To Support Entrepreneurial Ecosystem With New Online Presence

YoungUpstarts

It also includes Atlanta’s startup deal flow , outlining angel investments and venture capital that support promising area companies.

VC Partner Sweet Spot: The Always-Sometimes-Never Rules for Pitching the Right Investor

View from Seed

Even if an individual is designated by title as being more senior than another, the individual with a longer tenure always yields more soft influence to get a deal done given his or her deeper relationships, organizational know-how, and established trust with colleagues.

What I’ve Learned in the Last 5 Years as a VC that I Didn’t Appreciate in the First 5

View from Seed

– Saying you will never do a deal in a certain location (eg: never do a deal in Florida. The belief is that the best founders and investment opportunities are quite obvious to any smart investor, so it’s imperative to have proprietary deal flow and relationships.

2018: Year in review and a look ahead

Version One Ventures

US VC deal flow in healthcare hit an all-time high this year as we continue to refine our thesis on the space. 2018 was a big year for Version One, and it’s hard to believe another year is drawing to a close. We invested in seven new companies and participated in many follow-on rounds. Of the new investments, one is in encryption, one is in security, one is in consumer hardware, one is in bio/healthcare, and three are in crypto/blockchain.

Why Venture Capital No Longer Defines Innovation

ReadWriteStart

Today’s venture capital deal flow to innovative new companies looks a lot like a fat man trying to squeeze into a slim Italian suit. Today, venture capital deal flow has slowed to a relative trickle, just $28.4

How to get meetings with people too busy to see you

Steve Blank

I’m not an investor, and I’m really not looking for meetings with entrepreneurs for deal flow. Asking, “Can I have coffee with you to pick your brain?” is probably the worst possible way to get a meeting with someone with a busy schedule. Here’s a better approach.

If You Can’t Find An Angel Investor, Look Again, Here

Startup Professionals Musings

This software platform is used by many local angel organizations for managing deal flow. If your startup is looking for an angel investor, it makes sense to present your plan to flocks of angels, and assume that at least one will swoop down and scoop you up. Or does it?

Angel Investing Skill 2 – Domain Knowledge

Both Sides of the Table

Part 1 – Access to Great Deal Flow – is here. But the problem is that most deals – even really promising ones – fail. I personally try to avoid many of these club deals. So many deals seem like obvious money makers. Access to Deal Flow.

The Summer Solstice And Seed Stage Squeeze

Haystack

Those employees and operators, who often have some book wealth now (or are running syndicates on AngelList or acting as a scout for another fund) can easily dump $50K-$100K into one of their ex-colleague’s new startups, or put this money into their friend’s new startup, or their friend’s new hot deal. If you’ve been following my tweets lately, you’ve read some of my quick musings on the state of the seed market this summer. In short, in my 6.5

Five Questions for Vetting an Investment in a New or Emerging VC Fund

This is going to be BIG.

They’re trying to get exposure and diversification at the same time, while potentially seeing co-investment deal flow. They all have great networks, above market performance and some special sauce that sounds nice but you’re not 100% clear it makes sense as a way to boost returns or get access to deals. Could you have led any of these deals?

What is the best way to connect with investors?

Gust

Note that Gust also allows you to share your password-protected investor relations site with individual investors and VCs you know or may meet, even if they are not part of an angel group or fund that uses Gust to manage its deal flow.

Where To Find The Most Angels To Fund Your Startup

Startup Professionals Musings

This software platform is used by most local Angel organizations for managing deal flow. If your startup is looking for an Angel investor, it makes sense to present your plan to flocks of Angels, and assume that at least one will swoop down and scoop you up. Or does it?