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.

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.

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.

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

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.

"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.

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.

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

Are young VCs better VCs?

VC Adventure

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.

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.

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?

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.

Year One Labs Invests in Customer Support Startup by Dov and Mitch Amihod

Instigator Blog

One of the really cool things about this deal is that we met Dov and Mitch through the Google Hackathon we held (along with Google and RPM Montreal) in January. But it’s very exciting to see opportunities like our deal with the Amihod brothers emerge out of those efforts. Tweet.

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.

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.

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.

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 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.

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.

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.)

NDA 80

What is a good site or Gmail extension for an angel investor to manage their startup deals?

Gust

Boy, do I wish there was a magical Gmail extension to let me manage my startup deals! Gust (the company I founded) is the online platform used by over 45,000 accredited angel investors and VCs, from over 1,000 angel groups and venture funds, in 74 countries, to manage their startup deals.

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.

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.

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.

How to Launch, Manage, and Invest a VC Fund

David Teten

For example, we created a pipeline management tool that automatically adds deals along with relevant information (such as attachments received) to our funnel. This tool serves to standardize & automate the process of collecting inbound deal flow. It seamlessly creates a deal folder (company name) in our Google Drive. On Copper (our deal board), a due date of two business days is automatically set for us to review the opportunity. See Where Are the Deals?!:

How to Launch, Manage, and Invest a VC Fund

David Teten

For example, we created a pipeline management tool that automatically adds deals along with relevant information (such as attachments received) to our funnel. This tool serves to standardize & automate the process of collecting inbound deal flow. It seamlessly creates a deal folder (company name) in our Google Drive. On Copper (our deal board), a due date of two business days is automatically set for us to review the opportunity. See Where Are the Deals?!:

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

Gust

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.

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.

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.

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

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.

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.

What is a good site or Gmail extension for an angel investor to manage their startup deals?

Gust

Boy, do I wish there was a magical Gmail extension to let me manage my startup deals! Gust (the company I founded) is the online platform used by over 45,000 accredited angel investors and VCs, from over 1,000 angel groups and venture funds, in 74 countries, to manage their startup deals.

Xconomy covers AngelList

Venture Hacks

Here’s a choice quote: "I think the way to get into angel investing is, first, you obviously have to have money; you have to have a brand, otherwise you are not going to be differentiated and you are not going to see good deals; and you have to have a network of angels to work with, so you can move in packs and find other people to help you with due diligence,” Ravikant says.

Entrepreneurs, Remember the Deep, Hidden Competitors

Allen's Blog

Due to this, VCs with good deal flow (i.e., In a separate post here , I wrote about an overall framework that entrepreneurs could use to think about competition -- and how to handle the issue in your VC pitch. I think the framework is still good for the intended purpose, and I continue to dispense this advice to my "Sherpa" companies today.

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.

"B2B and enterprise applications set is alive and well in NYC,” and that “innovation not specifically."

Mark Birch

But for “pure tech,” he added, “the center of gravity is still San Francisco, at least as our deal flow and portfolio are concerned.”” - “ Could New York’s Startup Scene Hit the Wall in 2013? ” ““B2B and enterprise applications set is alive and well in NYC,” and that “innovation not specifically related to the consumer space will continue apace.”

B2B 40

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 76

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.

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.