What Makes a Deal Stand Out: Insights from the Venture Screening Process
Episode Summary
In this lively episode of "Venture Declassified," hosts Mike Kelly, Ben Pidgeon, and Jacob Spock dive deep into their screening processes, offering a backstage pass to how venture capital decisions are made. The episode is a fascinating exploration of how these experts engage with potential portfolio companies, balance efficiency with thoroughness, and deal with the challenges of high-volume deal flow.
Jacob, Mike, and Ben begin by sharing their recent experiences at South by Southwest and quickly transition to discussing their week-long schedules. This sets the stage for a detailed conversation about screening potential investments, differentiating between immediate red flags and opportunities worth pursuing. The hosts reveal how each of their organizations handles the influx of applications and inbound interest, underscoring the importance of structure and criteria in maintaining a robust pipeline.
Ben sheds light on his approach at Vision Tech, highlighting the value of maintaining a hands-on yet discerning method to assess new ventures. Meanwhile, Jacob offers insights into Elevate Ventures, where geographic requirements and innovation potential are key factors in initial screenings. Mike provides a view into their process of filtering deals and identifying champions within their team to advocate for promising startups.
The trio also discusses the variables and criteria that can make or break a deal during the screening phase. They touch upon aspects like business model viability, founder preparedness, and market potential. Additionally, they explore how external factors and dynamics can shape the landscape of investing.
The episode wraps up with a thought-provoking idea for future content: conducting live screening sessions with each host leading their respective deal discussions. This engaging episode is a must-listen for anyone interested in the intricate dance of VC deal screening and the mechanics behind investing smartly and successfully.
Key Topics
• Discussion about dedicating time to due diligence and screening companies
• The process of reviewing deal flow and assigning partners for screening
• Various strategies in handling screening calls and time management
• Assessing company validity and readiness during calls
• Differentiating promising startups from less credible ones
• Warning signs during screening, such as a lack of competition or sense of urgency
Connect
Mike Kelly
• Website
Ben Pidgeon
Jacob Schpok