Knowing What is a Healthy Deal Flow
Deal Flow is a term used to refer the frequency of investment opportunities to angel investors, venture capitalists and investment bankers. It is simply the rate of getting returns on investments. Deal Flow determines how often a business firm receives new deals. It is used by investors and banks to determine how their business works well.
Deal Flow: Healthy or Poor
Deal Flow can be healthy or poor. It is a good indicator whether investments are getting high returns at its peak capacity. A company will always aim for a constant and healthy Deal Flow. A healthy Deal Flow is a state where there is a steady and enough deals. Also, a deal flow is also healthy when the fund going out equates the amount coming from established investments. On the other hand, Deal Flow is poor or bad when business opportunities are lack or insufficient. Although, not all companies maintain a good Deal Flow, there is quite a number of investors have been receiving low cash flow. To maintain steady returns, ace all the projects and deal with them seriously. Having several investments and businesses will facilitate a healthy Deal Flow. Meanwhile, Deal flow management softwares are available in the market to create a systematic deal process with the costumers.
Angel Investors on Deal Flow
Angel investors are individuals of small group who shares and funds a start-up business. Angel investors' Deal Flow is described as oftentimes healthy and diversified. Angel investors do not focus merely on single investments. An angel investor may fund a food chain and at the same time, investing a road project. This kind of disposition will give angel investors more chance of high return on investment and at the same time, a great source of money. Angelsoft is the primary deal flow management software used by angel investors and super angels. AngelList deal flow management software is also used by angel investors and venture capitalists.
Sources of Deal Flow
Entrepreneurs or companies
Attorneys and accountants
Investment bankers
Deal Flow and Business Development
Successful companies have spent their time in creating their business development. Business development is composed of techniques and strategies to explore different services or products that appease the needs of the client, to draw attention of new costumers and to get access on business markets. Business development determines the possible sales and recognizes the full potential of the company through marketing, information management and customer service. It should be an on-going process of the company as this caters both the client needs and the supporting operations of the company.
Sunday, October 16, 2011
Understanding Deal Flow and Deal Flow Management Software
Labels:
deal flow,
management software
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