deal flow

Definition

The rate at which investment opportunities come across a VC's desk. Good deal flow means seeing quality startups before everyone else; bad deal flow means getting pitched by anyone with a Squarespace website and a dream.

Example Usage

Moving to SF improved our deal flow dramatically—we went from seeing 10 companies a month to 50 per week.

Origin

Investment banking terminology from the 1980s

Fun Fact

Top VCs reject 99%+ of deals they see, meaning even with great deal flow, they're mostly saying 'no' all day—the diet of venture capital.

Source: Investment banking and venture capital operations

Related Terms

Intermediate

vesting acceleration

Speeding up the vesting schedule of stock options, typically triggered by acquisition or termination. It's the consolation prize when your startup gets acquired and you're suddenly unemployed.

🚀 Startup / VC

Beginner

lifestyle business

A profitable company designed to generate comfortable income for its founders rather than pursue hypergrowth and venture returns. The entrepreneurial equivalent of choosing happiness over glory.

🚀 Startup / VC

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Venture Capital (VC)

Money from professional investors betting billions annually that 1% of startups will become unicorns. A mostly efficient system for transferring wealth from LPs to founders (and from founders to VCs).

🚀 Startup / VC

Advanced

catalytic capital

Patient, flexible funding that accepts below-market returns to achieve social impact alongside financial returns, pioneered by organizations like Omidyar Network. Capitalism with a conscience, or venture capital with lowered expectations, depending on your perspective.

🚀 Startup / VC

Intermediate

elephant hunting

A sales or fundraising strategy focused exclusively on landing enormous clients or investors rather than building up smaller ones. It's high-risk, high-reward betting where you either feast or starve.

🚀 Startup / VC

Beginner

skin in the game

Having personal capital at risk in an investment or venture, theoretically aligning interests between founders and investors. It's the 'put your money where your mouth is' principle, except everyone's mouth is usually writing checks their bank account can't cash.

🚀 Startup / VC

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