Startup Funding Espresso -- How to Set Up a Deal Flow Process

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

Deal flow is key to successful startup investing.

It takes a great deal of time, so it’s important to build a strong process for managing it.

It helps to use a software tool to track it.

Start with the key steps for running deal flow as follows:

Set up a deal flow source with angel groups, venture funds, online portals, and others.

Capture deal information into the software tool with their key information.

Run an initial screen to see if it meets your criteria -- have 3-5 key points to check.

Set up the first call to find out more details and update the deal flow software with the results.

Set up a partner meeting to review the deal with others in your fund, syndicate, or network.

Negotiate valuation and terms.

Perform diligence on the deal.

Close the investment.

Set for ongoing follow-up and reports.

In each step, capture the results into the software.

On a regular basis, analyze those results to find the following:

-Which sources gave you the best deals

-How much time did the calls take to capture the necessary information to make a decision

-What key factors the startup must have to go all the way through to funding

After analysis, update your process to screen out deals that won’t make it.


Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.
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