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September 03, 2024 posted by Ivoryglito
Deal sourcing refers to the methodologies and activities that venture capitalists undertake to discover investment opportunities. These opportunities are typically in the form of startups or growth-stage companies seeking financial backing. The approach to deal sourcing can be either active , including proactive networking and targeted searches, or passive , such as through referrals or inbound requests.
Role of Deal Sourcing in Venture Capital.
How is a stock pitch related to an investment thesis and what role does a target price play in it?
In summary, pre-seed funding is a vital component in a startup's journey, laying the groundwork for their future growth and success. It allows entrepreneurs to take their initial ideas and turn them into viable business models, preparing them for the next stages of funding and growth.
The deal flow process includes defining an investment thesis, building a pipeline of prospects, reaching out to potential investments, conducting rigorous due diligence, and ultimately deciding which startups to finance. Each step is vital to ensure the quality and fit of the investment opportunity.
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