Accelerators And Seed Deal Flow


It feels like a tsunami of deal flow , and for me, I’ve outlined how I pay attention to inbound flow in terms of what gets priority. And one of the sources of that flow are the new accelerators (I’m lumping incubators, accelerators, etc. Those of us in the early-stage tech ecosystem by now well know that saying “there are a LOT of seed and new startups” is a gross understatement.

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. I sorted out pretty early that lawyers were a great source of deal flow. Of course I went through normal other channels of deal flow. I eventually stumbled on to the best source of high-quality deal flow imaginable – blogging.


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Thoughts on Organic Deal Flow

View from Seed

Similarly, the best kind of deal flow for a VC is organic deal flow. Even if you are just meeting a founder for the first time, I think of deal flow as being organic when an intro is made by a founder that the investor trusts well before an active fundraise process has begun. Less organic deal flow is when it’s clear that an investor was inserted into a broad fundraising pipeline late in the process.

Paying Attention To Inbound Deal Flow


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


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.

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.

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.

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. – Making Private Equity A Big Deal


DealMarket ( ) 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. The site even integrates social media features, allowing visitors to rate deals and even fellow professionals, share information about deals and network with one another.

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 117

Are young VCs better VCs?

VC Adventure

5 Flocks Of Investors Looking For An Enticing Startup

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?

Thoughts on Repeat Founders

View from Seed

This mismatch can create challenges for some investors, especially ones with fairly disciplined models and who have great deal flow.

How to Leverage Micro VC Funds to Build an Angel Portfolio

This is going to be BIG.

The partner at the fund, the VC, gets to do the fun part—the meeting with founders, vetting deals, negotiating, helping, etc. Are investors allowed to come into deals that the fund does side by side with the fund? In fact, those deals are actually set up as mini-funds.

On Funding?—?The Denominator Effect

Both Sides of the Table

The thesis is that before investing in an early-stage startup it is close to impossible to know which of the deals you did will break out to the upside. It’s therefore important to have enough deals in your program to allow for the 15–20% of amazing deals to emerge. On Funding?—?The

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. The book explores the role of gender in the tech industry – at startups and venture capital firms – and the interaction between men and women in the two.

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?

What Freedom Looks Like

David Cohen

So the freedom we’re seeking often ends up as a dream deferred because we don’t have access to any of the stages of capital required to grow and scale, and we don’t have a seat at mainstream tables where deals flow.



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


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.

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. I sorted out pretty early that lawyers were a great source of deal flow. Of course I went through normal other channels of deal flow. I eventually stumbled on to the best source of high-quality deal flow imaginable – blogging.

Insights from the Most Active Investor in Silicon Valley


The Deal Flow Session. The model that’s worked consistently is the deal flow session. Deal flow is a specifically targeted, curated, matchmaking session between a problem area for a large, Fortune 100 company and the startup ecosystem.

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


It also includes Atlanta’s startup deal flow , outlining angel investments and venture capital that support promising area companies. If you’re an entrepreneur based in Atlanta, you may want to check out Startup Atlanta , a non-profit dedicated to making the A known nationally and internationally for entrepreneurship.

Report Examines Where the Top VC Firms Are Investing


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. CB Insights has broken down these deals further to examine the trends in terms of deal flow by sector, and no surprise, investment in Internet technologies led the pack, comprising 36% of the deals and 26% of the dollars the top VC firms invested.

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. I think these deals are less exciting than the ones you proactive seek out. Deal flow and winning will drive change faster than any other outcome.

Does Alternative Finance Exist In Singapore And Hong Kong?


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. by Anthony Coundouris , trade finance evangelist for ApexPeak. In Hong Kong, there are fewer than 10 alternative financiers, with similar numbers in Singapore.

The 7 Habits of Highly Effective VCs

VC Cafe

A 2018 study by Creandum ventures found that speed, is the third most important factor for entrepreneurs when dealing with VC, but it’s only the 10th on the list for VCs. The startup decided, it’s either a win-win, or no deal.

The Truth About Investor Updates


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.

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. As a member of one of these local organizations, I use Angelsoft on the investor side to review business plans, deal flow, and help orchestrate presenters at monthly meetings of the local organization.

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? Actually numbers and locations are just the beginning. The challenge is to find the right angel for you, and for your situation.

The VC Industry Norms Which Changed Over The Past Decade


There are too many angels, accelerators, scouts, and seed funds who are giving them checks early, potentially diverting deal flow. Having spent time around and then in the world of VC in the Bay Area during the last decade, I’ve been reflecting on how different norms in the industry have changed. At the start of 2010, there was some unwritten VC industry conventions that have been tested, challenged, and upended in the last decade.

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. More so that other segments of VC, seed sourcing use to involve pretty heavy deal trading with other firms. Many of us in the seed stage ecosystem have noticed a shift in the way seed rounds are coming together.

Why Venture Capital No Longer Defines Innovation


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 It just doesn’t fit. The new shape of innvovation is a lot more inclusive of new approaches and sources of startup funding. In 2000, venture capitalists poured a staggering $112.2

What are the best innovations to come out of the financial industry in recent times?


Today, over 200,000 companies are using it to organize their materials for raising equity, over 1100 venture capital funds and organized business angel groups are using it to manage their deal flow and portfolios, and nearly 50,000 accredited investors are directly using it to discover early stage investment opportunities and connect with entrepreneurs.

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.

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. I believe the rise in angel investing is here to stay and the professionalization of this class (aka “super angels&# or “micro VC&# ) is a good thing for the VC industry and for entrepreneurs.

Steel In Their Eyes – Why VC’s Should Be Startup CEO’s

Steve Blank

Rolodex/deal flow (deal sourcing/ability to make connections for the portfolio). Early stage investing is not a spreadheet, quantitative driven exercise, nor is it about technology – it is a deal business and people drive the deals. For venture firms who want to groom/grow associates or operating execs into partners (rather than hiring proven partners), here’s my suggestion: Have them start as an analyst (search for deal flow and people, due diligence).

Portfolio Management – Learning from experienced investors

NZ Entrepreneur

Building deal flow so that you have access to more opportunities and can select from the best possible options. The Angel Association of New Zealand ( AANZ ) is co-hosting with New Zealand Growth Capital Partners ( NZGCP ) a series of workshops on early-stage investment.

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. Ignoring or, worse yet, being rude or inconsiderate to a junior investor is a fast way to ensure that a deal won’t happen.

What is the best way to connect with investors?


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. With Gust , the power of the system is that your completed investor relations profile can now serve as your official application to virtually any organized angel group in the world…all you need to do is share it with them*.

“Your Portfolio Is Your Path”


It’s not popular to admit, but I believe there’s really no way for very early-stage investors to control what deals they ultimately see. Deal flow, then, is often a random walk. Slowly I have learned – the association investors have with certain founders, syndicate partners, and downstream VC firms matters; the people one chooses to work with as investor matters a great deal; and while the decisions may happen quickly, they stick around for a long time.

As a new independent angel investor, how will I find new companies to invest in?


Benefits of joining a group include pooling deal flow, capital, domain expertise, and investing experience. Most groups run regular education sessions for new members, and provide mentoring for less experienced investors by those with many deals under their belt. The two sites you mentioned are both secondary listing services, for later stage companies.

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. —— Jason, an entrepreneur I’ve known for over a decade, came out to the ranch today. He was celebrating selling his company and just beginning to think through his next moves.