I’ve written in the past of the importance of proprietary deal flow and the ability to access the best deals. At the end of the day, each VC fund is only as good as the deals they are able to get in on.
That being said, I have been exploring with an idea to expand the pipeline for ourselves and all investors in our investor network.
Our group looks at a lot of companies through the combination of recruiting for an accelerator program and acting as a seed investor. For reference, this summer we touched over 4,000 companies for the accelerator and close to 100 for the seed fund. We are selective enough on both the accelerator and the fund that we feel that we act as a pretty good source of curated deal flow for downstream investors.
The problem that we have faced in the past is that we have infrequent contact with our broader investor network and thus we do not provide the value that I spoke about above about being a source of curated deal flow.
My idea to improve this in the future is to start a Slack channel to share deals with our broader network. I have tried to list the starting pros and cons below:
- nearly all VCs are on Slack — easy penetration with (likely) little resistance
- essentially becomes a two-sided marketplace within the investor community
- strong network effects if it catches on
- improved pipeline for all (or at least increased number of companies on their radar)
- presentation — still unsure of how much to share / internal thoughts of each deal rather than just sharing deals objectively
- must rely on each member of channel to provide and not just consume
- possible adverse selection — some investors unlikely to share their top deals if they fear they could miss out on rounds if they do
- legality — should probably check if this is legal before I dive in too deep