Most of your deal flow is not going to make the cut. The numbers speak for themselves: VCs tend to invest in only 1% of the deals that come their way. Investing demands hours of discussion and careful contemplation, in addition to trust and the willingness to take a risk. You want to be sure that you are building a strong portfolio and investing in people and companies that you believe in.
For venture capital funds, front-office solutions (like Zapflow!) are specifically designed to streamline and optimize the investment management process. They are powerful tools that enable your team to optimize deal flow management.
Deal flow and deal sourcing is the first stage of the VC funnel. Your success as a VC depends entirely on the kind of deals you can bring in. As a number of new investors have entered the fray in recent years, it has become increasingly challenging to come across high-quality deals. The increased competition in a crowded market has put pressure on VC firms to maintain their edge. In this scenario, having a robust deal sourcing process is a prerequisite for success as it determines the direction in which companies your portfolio will contain. It is only through consistent and high-quality deal sourcing that you can ensure your portfolio is achieving maximum returns for your LPs.
According to the General Data Protection Regulations (GDPR) that came into effect in 2018, any company that fails to comply with its data protection principles is liable to pay a hefty fine and may not be permitted to work in the EU.
Been struggling with identifying investment opportunities? Even after you identify a promising startup that fits your criteria, success is far from guaranteed. According to the U.S. Bureau of Labor Statistics data, 30% of businesses fail during the first two years of being in business, 45% within the first five years, and 65% of businesses fail within the first ten years.
Contrary to popular belief, venture capital is not a game of averages or compounding returns. If you want to achieve high returns on your VC fund, you need to hit home runs with a few of your investments.
As the world economy undergoes a sea change, it is crucial for investors to be up to date with the latest industry trends and consumer behavior. While there are a number of ways to keep up with these fast-changing trends, what better way than reading blogs by venture capitalists? After all, VCs are tasked with identifying trends and companies likely to shape the future.
It is no surprise that amidst continuing supply chain disruptions and the Russian invasion of Ukraine, there have been significant impacts on the global economy. These supply-side constraints, which are worsened by rising oil, commodity, and energy costs, have put unprecedented upward pressure on prices. As of April 12th, 2022, gasoline prices have risen 48% compared to last year, whereas fuel oil has increased by 22%. Given that fuel and oil are universal raw materials used as inputs in most industries, the war-led price surge will have several consequences on the financial markets.
A common expansion strategy for businesses and private equity firms alike is to make acquisitions. Businesses gain control of another company by purchasing a majority of the company’s shares.
While venture capital funding has been slowly rising in the US over the last fifteen years, the year 2021 witnessed record highs. Companies supported by US venture capital funds raised almost double the previous year’s record, going from $166.6B in 2020 to $329.9B in 2021.
