Deal flow is a crucial indicator of an investment firm’s
health. We’ll explain how firms can use their spheres of
influence to increase deal flow and help their businesses
What is Deal Flow?
Deal flow is the rate a company receives business proposals
and investment pitches from their partners, collaborators,
Deal flow is cyclical; it’s important for firms and investors
to take advantage of periods of high deal flow, recognizing
that it comes in waves.
“In one year Investors see over a thousand business plans
and meet on average with hundreds of companies, but
ultimately only invest in one to two. …It really is a referral
Effective investors use several avenues to assemble referrals and increase business
Referrals From Other Investors
Investors are more likely to prioritize referrals from someone they
know than from strangers.
Referrals From Portfolio Companies
The referral comes from a portfolio company that’s benefited the
investor in the past. This signals the company understands the investor’s
priorities, interests, and areas of expertise.
Referrals From Service Providers
“Lawyers, accountants, banks, consultants… who have worked
with us frequently in the past generally have a very strong
sense of fit.” That’s why it can be worth your time to build relationships
within these networks even if you don’t need the service provider’s help currently.
You never know when a relationship will come in handy.
If your firm is struggling to maximize deal flow, reach out to
MCMK Tech Marketing Solutions for help. Our experienced
team offers tailored marketing strategies and tactics to boost
your firm’s reach and success.