No matter how experienced you are as a venture capitalist, it's important to have a process in place for reviewing deals (alone or as part of an investment committee). This process should include steps for assessing the attractiveness of a deal, determining the fit of a company with your firm's investment thesis, and collectively deciding whether or not to move forward with a deal.
Automate Your Deal Flow Pipeline: Whether you’re a lone investor or part of a Venture Capitalist team, this Quest will help you create an automated deal flow pipeline that covers all the things you don’t want falling through the cracks.
✅ Assign Investor Committee Members
Assign team members to stage of each deal, from introduction to close. This will help you keep track of where each deal is in the process and what still needs to be done.
✅ Delegate Deal Flow Processes
Your deal flow pipeline can be broken down into more manageable sub-workflows (Quests). A really cool thing about this is that you can assign people to just those things that are relevant to them.
✅ Stop Things Falling Through The Cracks
There are many factors that go into deal flow processing, such as reviewing financial docs, meeting with your committee & doing research etc. Standardising this process stops things falling through the cracks.
What To Include In Your Deal Flow Pipeline
✅ Capture details about the opportunity, including: Company name, size, location, what problems they solve, who is on the team, initial impression etc.
✅ A standardised list of things to evaluate, so you can consider all the potential risks and rewards associated with an investment before making a final decision. E.g. Market size, competitive landscape, business model, financials and how the deal may impact your overall portfolio.
✅ A method for building and maintaining a strong investment committee, where you can collectively make decisions about which startups to invest in, how much to invest and when to pull out of an investment etc.