Deal Flow CRMs to Track Portfolio Investments

Are they worth it?

Photo by Shengjun Shi on Unsplash

Venture capitalists see hundreds of deals every year — whether you’re an angel investor, emerging manager, or veteran managing partner. The question is, how do you manage all of this deal flow without losing track of the deal, investment economics, and post-investment milestones? Who sent it to you, and who you shared it with? Who has the deal and what are the economics?

Even further, you need to keep track of where all those companies are in your investment process. Through the diligence process, the huge mass of deals gets gradually whittled down to just a small percentage of companies or your acceptance rate (%). Of all the hundreds or thousands of deals that a private market investor sees, only a handful get a check. Of those, only a few make it to the next stage.

This deal flow funnel helps you track not only the volume of deals and investments but the quality as well. High-quality deal flow is consistent with your investment strategy and parameters like sector, stage, check size, revenue threshold, and team size. How efficiently can you and your team move a company from an initial referral to investing? How many deals did you see, pass on and accept last quarter, quarter over quarter or vintage? Equally important, how quickly can you knock out companies that don’t fit the bill…