In private equity and venture funds, deal sourcing is the process of identifying and sourcing new investment opportunities. Deal sourcing is a critical function in these types of firms, as the ability to source and identify attractive investment opportunities is a key determinant of success. There are a number of ways to source deals in private equity and venture funds. In This blog article, expert Stephan Wirries reveals VenTech's secrets to deal sourcing.
Impact of digitalization on deal sourcing & alternative data sourcing.
The internet has transformed the way we live and work. It’s no surprise then that the world of private equity and venture capital has also been affected.
One of the most important changes is the way deals are sourced. Stephan explains that deal sourcing is largely a matter of personal relationships and networking. But one of the most important factors of being a successful investor is being able to adapt to change and leverage the tools around you, Stephan adds. With the advent of online tools and social media, it’s possible to source deals even during times like the COVID pandemic.
This change has had a big impact on the way PE and VC firms do business. It’s now possible for firms to source deals through AI and data-driven deal sourcing methods.
Deal Sourcing post COVID
The COVID-19 pandemic has disrupted the way private equity and venture capital firms source deals. As Stephan mentioned, deal sourcing is largely reliant on face-to-face interactions, such as conferences and meetings. However, with the outbreak of COVID-19, many of these in-person events have been canceled or postponed.
As a result, Stephan explains that his team had to find new ways to source deals. One way to do this, Stephan explains, is by hosting virtual events, such as webinars and online conferences. These virtual events have allowed firms to reach a wide audience and connect with potential investors from around the world.
Stephan also stresses the importance of networking via online platforms.
COVID-19 has forced private equity and venture capital firms to adapt their deal sourcing strategies. However, the pandemic has also created new opportunities for firms to reach potential investors through online channels.
Networking for Lead Sourcing
Stephen points out that as a private equity or venture capitalist, one of the most important things you can do is build a strong network of industry contacts. Why? Because when it comes time to source deals, your network will be invaluable.
The best way, in Stephan's opinion, to build a strong network is to attend industry events, such as conferences and trade shows. At these events, you'll have the opportunity to meet potential partners, clients, and employees. You'll also get the chance to learn about new trends and developments in the industry.
Another great way to build your network is to join industry associations. By joining an association, you'll gain access to a wealth of resources, including networking opportunities. Plus, you'll be able to stay up-to-date on the latest industry news and developments.
If you want to be successful in private equity or venture capital, then Stephan would advise you to make networking a priority. By building a strong network of industry contacts, you'll be able to source the best deals and keep your finger on the pulse of the latest industry trends.
If you're looking to source PE and VC deals, leading expert Stephan Wirries cuts it short. He explains that the best place to start is by attending industry events and connecting with professionals in the field. By building relationships and networking with the right people, you'll be able to access a wealth of deal flow that you wouldn't otherwise have access to. And while there's no guarantee that you'll find the perfect deal, by following these tips, you'll be well on your way to success.