The Deal Flow Problem
A typical seed-stage VC reviews 1,000+ companies per year and invests in 8–15. Without a structured pipeline, promising deals slip through the cracks, follow-ups are missed, and investment decisions are made from memory rather than data.
Stage-Based Pipeline Structure
Organize your deal flow into clear stages:
- Inbound: New deals that haven't been reviewed yet.
- First Look: Quick assessment — does this match your thesis?
- Deep Dive: Detailed analysis, reference calls, market research.
- Partner Review: Internal discussion with your investment team.
- Term Sheet: Active negotiation and due diligence.
- Portfolio: Closed investments requiring ongoing support.
- Pass (with notes): Declined deals — always record the reason.
What to Track for Each Deal
At minimum, capture: company name, founder, stage, sector, source of introduction, key metrics, thesis fit score, meeting notes, and next action. The source tracking is especially valuable — over time, you'll learn which channels (events, other VCs, platforms, cold inbound) produce your best investments.
The Power of Saying No Fast
The best investors are ruthless about filtering. If a deal doesn't match your thesis, pass within 48 hours. This respects the founder's time and keeps your pipeline clean. A slow "no" helps nobody.
Using AI to Cut Through the Noise
Modern deal flow tools use AI to pre-score inbound deals against your investment criteria — thesis alignment, market size, traction signals, and team background. This doesn't replace human judgment, but it ensures you spend your time on the most promising opportunities first.