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.

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.

Trending Sources

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.

Conference Notes on Sourcing Deal Flow & Developing New Business for Private Equity

David Teten

I enjoyed participating in last week’s Capital Roundtable Private Equity Masterclass on “ Best Practices for Sourcing Quality Deal Flow & Developing New Business ” (May 26 th , 2011). High Road Capital Partners Deal Sourcing Keynote. Chairman’s Keynote: How to Win -The Five S’s of Successful Deal Sourcing. Notes: Most funds have ~7 deals total, or about two deals per year. You can download the slides at teten.com/deals.

Deal Flow Management Tools

EIN News

What are Deal Flow Management Tools? Zealand, Ireland, France, India, Canada, Australia and United States. Other. available to angel investors, super angels and venture capitalists. Yet, it has been in vogue because

"One explanation for the correlations we’ve seen is that firms with the best deal flow and."

Mark Birch

“One explanation for the correlations we’ve seen is that firms with the best deal flow and track records tend to be able to raise larger funds. One note however is that personal networks might help with deal flow, but you still need to pick the winners, and the earlier on you get on board, the better. That favors smaller funds in my mind that have a more focused strategy, get on deals earlier in the funding cycle, and develop deep category expertise.

The Nature Of The Firm and Work Markets

A VC : Venture Capital and Technology

" Our firm is seeing these work markets sprout up all around us and if there is a single investment theme that is dominating our deal flow right now, this would be it. Those who watched the video I posted on Sunday saw me talking about this. But I didn't do it justice so I'm going to do a full post on this. The brilliant Nobel prize winning economist Ronald Coase (who is still alive!) wrote a seminal essay called The Nature Of The Firm in 1937.

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.

Getting A VC Job

Rob Go

Have domain expertise in an emerging area that the VC cares about and wants to develop more authority and deal flow around. In selecting a firm, I’d prioritize fit and the strength of the firm’s deal flow.

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?

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.

Full Time Vs Part Time Angel Investors

Mark Birch

First is the ability to see a lot of startups, which investors refer to as deal flow. The part-time investor does not have enough time to build enough deal flow. angel investor investing VC deal flow networks risk time portfolio

LP 1

No, I Won't Sign Your NDA

Inc Startups

We call this deal flow. An NDA kills deal flow. As a side note, if I am good and I create buckets of deal flow, and I sign NDA’s for some amount of them, I now have to remember what I can talk about and what I cannot.)

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Angel investing strategies

High Contrast

The main influencer of return for angel investors is the quality of deal flow that you can win. To see better deals and win them you need to increase the value of “you.” Yes, it can be an expensive way to learn but it may be well worth it when you consider the forward benefits that affect the quality of your deal flow and your ability to win deals. Where you can get high-quality deal flow you can win, do a smaller number of deals.

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.

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.

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?

Tips for companies attending office hours

The Equity Kicker

It’s a great way for us to meet with lots of founders, improve our deal flow and hopefully give a little back to teh community. Every month we run an open office hours.

How VC’s Source

Rob Go

The stock answer from most investors is that they get most of their deal flow from referrals. Great referrals comes from having a great product, and so the most important part of effective deal flow is having a great “venture capital product” that fits the needs of founders and exceeds their expectations. VC’s have developed scout programs that give founders some economics for any deal they bring in.

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.

Charts of the Day – The complexity of raising Series A

Seth Levine's VC Adventure

The first chart shows the pace of deals (measured by number of rounds) by category: Pretty hard to miss the huge blip in Seed/Angel deals in 2013 (but really from 2011 and continuing through 2015, with a peak at 2013).

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.

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.

The Sole Purpose of a Startup Accelerator Should Be Making Money

Instigator Blog

When things are booming, like they are now, they participate a great deal. In that case the motivation may not be money, it may be deal flow for the venture component of the business. Accelerators help spur that activity, they create deal flow (for other investors), encourage entrepreneurship, etc. If you’re running a startup accelerator or thinking about it, and your primary goal isn’t to make money, be very careful. Money drives everything.

Are We in Tech Bubble 3.0?

Early Growth Financial Services

Deal flow in internet specific businesses is higher than in 2001: while VCs invested $7B in 141 deals so far this year versus $65 billion in 375 deals in … Continue reading → Valuation

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?

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

Gust

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.

Why You Need to Take 50 Coffee Meetings

Both Sides of the Table

Increase your deal flow. 50 coffee meetings. It should stick in your head as a metaphor for networking. For getting outside of your comfort zone. For starting relationships today that won’t pay off for a year.

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.

The LP Opportunity to Change Tech Culture

thebarefootvc

This tends to reinforce the lack of diversity in deal flow. Over the past month, Silicon Valley has been at the forefront of many conversations outside of the technology world. Unfortunately not for groundbreaking technology, but for rampant sexual harassment and predatory behavior. The stories outlined by a number of brave women in the NY Times last week recount investors using their power and position to proposition female founders.

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Start Here if You are Looking for Angel Investors

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?

Ending Our FG Angels Experiment

Feld Thoughts

Seth did a nice job of summarizing what the deals and the syndicate activity for the first year looked like. Average syndicate investment amount per deal: $316k. Largest syndicate investment in any single deal: $785k. Total number syndicate investors (syndicate members who invested in at least one FG Angels deal): 116. Total number of investors (all investors who have joined FG Angels in at least one deal): 410. #

Joining A Startup As CFO Is A Good Path To The Top

Startup Professionals Musings

Let’s make a deal” - The dream team CFO not only runs the deal process for fundraising, but should also bring deal flow into the company. As you probably noticed and Mark points out, only one of these CFO attributes actually deals with accounting.

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Hitting Pause on StartupCFO

StartupCFO

Other than some early adopter such as Fred and Brad , most investors had not yet caught on to the power of blogging to build their brands and deal flow. In February 2007, I signed up for a blogger account and wrote my first post here. I had no grand intentions when I started. I like to write and I was curious about blogging. Almost 10 years and 700 posts later, this blog has served me well.

Qualities of an Awesome Investor

Dshen

Ability to negotiate deal. it can even be putting personal money into fund(s) to get more deal flow. Understanding the ramifications of deal terms. Presentation and defense skills of a deal. Proper preparation for a deal. Deal flow and sourcing - proprietary? Good intuition in the area of deals, and people. More optimism than pessimism about deals.

LP 19

Regarding Roswell Ventures

Chaganomics

Good morning - In April when we created Roswell Ventures, interest was expected to a degree, but after these past summer months we have realized Roswell Ventures will serve as a true barometer and economic development organization inside Roswell that will help stimulate the economy, create deal-flow and inspire entrepreneurs.

Chad 16

VitalsChoice, Activation and November Pearls!

The Product Guy

Over the course of the night a few of the highlights were… Featured Product: VitalsChoice exploring the product, its challenges and successes, from managing deal flow to moving forward (thanks to Jessica Fredican). Please submit your nominations for 2014’s great product management candidates @ [link] ! prizes and recognition for both winner and nominator).

One Weird Trick to Build a Personal Brand

Both Sides of the Table

But returns are partly a function of whether one can get access to great deal flow. My long-time friend Jason Lemkin is on the verge of launching a spectacular SaaS conference called SaaStr this week. What Jason has achieved in no time flat in VC is astounding.

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Conversations with Richard Chino, pt. 1

Ask the Angels

The Angels were kind enough to share their insights with me, and bring together a good deal flow. Pasadena Angels was key from an educational standpoint, from a networking standpoint, and from a deal flow standpoint.

Warm Intros Waste Everyone's Time. Just E-mail Me

This is going to be BIG.

Even if not, by making it difficult to contact you, except through trusted introductions, you're implicitly saying "I think my next best deal is going to come from in my circle, as opposed to from outside of it." Most of the deals you fund have already been funded by someone else, so you're most likely going to see a deal through a seed investor you probably know. Everyone else doesn't really increase my interest in a deal.