proprietary deal

Definition

An investment opportunity sourced exclusively by one firm rather than through competitive process. The venture capital equivalent of finding $20 in your coat pocket—rare, lucky, and probably won't happen again.

Example Usage

The investment was a proprietary deal from a portfolio CEO referral, letting us lead at a fair valuation without competition.

Origin

Investment banking terminology for exclusive mandates

Fun Fact

VCs obsess over proprietary deal flow because competitive deals get bid up to irrational valuations—the auction curse of venture capital.

Source: Deal sourcing and competitive dynamics in venture investing

Related Terms

Advanced

aqui-dump

When a company acquires a startup primarily to shut it down and eliminate competition, rather than to integrate talent or technology. It's the evil twin of acqui-hire where everyone loses except the shareholders.

🚀 Startup / VC

Intermediate

liquidation preference

A clause ensuring investors get their money back first when the company sells or dies—like having a reserved lifeboat while founders and employees fight over pool floaties. Can be 1x (reasonable) or 3x (predatory).

🚀 Startup / VC

Advanced

tag-along rights

Provisions allowing minority shareholders to join a sale if majority shareholders exit—the friendlier sibling of drag-along rights. It's protection ensuring you can't get abandoned while insiders cash out.

🚀 Startup / VC

Intermediate

give-to-get

The VC expectation that founders will make introductions, provide advice, and help other portfolio companies in exchange for investment and support. Networking as a contractual obligation.

🚀 Startup / VC

Beginner

co-founder

The person you start a company with based on four hours of friendship and mutual delusion, who will become either your closest ally or your most expensive breakup. Dating is easier than finding a compatible co-founder.

🚀 Startup / VC

Intermediate

product-led growth

A go-to-market strategy where the product itself drives customer acquisition, retention, and expansion rather than traditional sales teams. Users fall in love before ever talking to a salesperson.

🚀 Startup / VC

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