Accelerators And Seed Deal Flow

Haystack

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.

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.

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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.

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.

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.

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 144

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. 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.

Are young VCs better VCs?

VC Adventure

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?

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.

Insights from the Most Active Investor in Silicon Valley

ReadWriteStart

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.

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.

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.

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.

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.

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.

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.

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.

The VC Industry Norms Which Changed Over The Past Decade

Haystack

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.

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.

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

[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. 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.

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. To be an effective VC, proactivity is part of the job description: Proactively learn about new companies trends and markets Proactively network (deal flow, peers, industry partners) Proactively seek opportunities to help. The startup decided, it’s either a win-win, or no deal.

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.

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 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

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.

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?

How Not to Get Your Time Wasted by VCs

This is going to be BIG.

If deal flow is slow, a VC will take a meeting if you and your team seem mildly interesting even if your product isn’t. Seniority Within the Firm Some non-partners at a firm can lead a deal—but the reality is that if you’re scoring your VC leads, you have to take points off for junior VCs or partners who probably have less pull. If you feel like you’re pushing the deal forward, your chance of closing are defiantly lower. VCs are notorious for kicking tires.

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 B2B Marketplaces Are Red-Hot

Haystack

1/ Consumer feels dry: I can’t prove this but simply based on how our deal flow has changed and frankly what is getting funded by the top institutional funds, consumer is increasingly harder to get right. People will often ask me, “So, what are the big tech trends right now?” ” In 2020, I gave 1.5 answers to that question. The obvious trend in startups (which has been going on for a year or two) is the idea of the “prosumer as the new consumer.”

B2B 80

VC Activity In Q1 2011 Back To Pre-Recession Levels

ReadWriteStart

The investment analysts at CB Insights have released their quarterly report on venture capital activity, and in terms of deal-flow and funding levels, the news is good. According to the deals tracked by CB Insights, 738 deals were funded in the first quarter, with a total of some $7.5

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.

“Your Portfolio Is Your Path”

Haystack

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.

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.

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

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. That access cuts both ways—because at our stage, we need to make sure the best deals can get to us. I believe that the next generation of top companies are far more likely to be founded by people not on VC radars today.

How Will Your Startup Handle "The Talent Crunch"?

ReadWriteStart

million to not leave for Facebook, Wilson says that this, along with the massive deal flow, is all "unsustainable." A number of stories have crossed the wire in recent weeks about the " talent crunch " in the tech industry. Although the unemployment rate in the U.S.

Doing Due Diligence on Potential Investors

View from Seed

Also, investors that are wonderful cheerleaders may come off very positively, but investors that do tons of work but also end up dealing with tricky situations may come off in a more mixed light. These partners are probably inundated with new deal flow, are managing some high-fliers in the firms portfolio, and are probably just starting to take on a leadership role in fundraising and firm management.

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.

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).