By Tim Houghten
For 1000 Angels, the private investor network that connect startups with investors, deal flow is critical. Only with sufficient deal flow can investors uncover the best startup investments, and stay diversified. No one want capital sitting idle, especially not in today’s miserly low interest rate environment. A Forbes study of deal pipeline for VCs and angel investor groups shows they review 87 investment opportunities before committing to 1, on average.
The new SEC Regulation A+ roll out is sure to make the landscape even more crowded with investors scrambling over the deal flow they can find.
So how can investors improve their deal flow?
1. Refer Deals to Others
Just because you aren’t interested in a particular deal doesn’t mean it won’t be a hit with someone else. Share the love. You might get one back in return.
Respond when others refer you deals. You might not love every one of them, but they won’t keep referring if all they get is crickets. If you want more deals on your screen, respond. If they are off base, then clarify what types of deals you are looking to fund.
3. Get in Front of More Pitches
Attend panels, industry conferences, events that entrepreneurs flock to, frequent coworking spaces, go to pitch nights at accelerators, or start your own reality TV show.
4. Develop ‘Proprietary’ Deal Flow Channels
Create your own deal flow channels you trust. It could be valley lawyers, members of local angel groups, and mentors. Who do you know that is investing successfully, and will turn you on to great opportunities?
5. Curated Startup Investment Opportunities
Cut out the fluff by joining platforms that curate startup investment opportunities for you. Let them do the hard work of vetting pitches, and just hone in on the best matches. After all, no one wants to become an angel investor just to create a new job for themselves. That’s what happens when you have to hunt for deal flow.