As a result, the days of VC investors spending all day at long conferences is no longer the future. Instead, through software and online social networking platforms, firms may reach farther and wider than ever before in the search for the next great startup. With so many new startups today, narrowing down these options is a crucial component to having an efficient firm deal flow.
Harvard business review states that " on average, out of 101 opportunities… only one will actually be funded." and that "A typical deal takes 83 days to close, and firms reported spending an average of 118 hours on due diligence". With such time-consuming processes for deciding on investment and so many companies to sift through, seeking modern solutions to revolutionizing deal flow is undoubtedly the way to move forward if a firm wants to maintain a competitive edge.
Using CRM software could decrease huge amounts of time used on things like due diligence as it would be far more collaborative and allow those analyzing a potential investment to reduce redundancy by building off each other's insights. Additionally, suppose only a handful out of every 100 companies even makes it to the due diligence step of deal flow. In that case, it is essential not only to determine companies suitable for investment efficiently but also to remain organized in getting there by keeping all the firm's research data within a single system. Every hour taken off such processes and each redundancy eliminated eventually adds up over time and can significantly shorten a company's deal flow process compared to its competitors. As a result of such benefits, a majority of companies are digitalizing their deal flows through intelligent software systems. This is partly because currently, "73% of employees spend between 1-3 hours looking for a particular piece of information". Fortunately, such wasted time can be eliminated with a CRM platform that is capable of organizing a myriad of VC information in one place.
Beyond CRM in the digital age having a solid online presence is a crucial part of staying ahead of the curve and maintaining a healthy deal flow for a firm. This can be done through online networking on business platforms like LinkedIn, connecting with industry experts, and seeking their opinions and referrals. This has never been easier as now anyone anywhere is a click away, providing a myriad of exciting new venture opportunities. If successful in this undertaking, firms can work their way into a position of prominence and achieve a much higher quality of deal flow.
Ultimately, the path towards modernizing a firm's deal flows is to increase its technological capabilities and interconnectivity and achieve a robust virtual presence with a substantial list of advisors. Doing so will provide undoubted benefits, with firms using CRM managing more deals and earning higher profits. Overall in the digital age we live in, the faster and smarter one can work, the better their deal flows will be, and as a result, they can achieve higher returns with generally less complicated systems.
If Indeed CRMs are the end-all solution that brings greater profits to firms and allows them to streamline their deal flows efficiently, why are there still issues? The reason lies in the fact that no existing CRM truly combines all of a firm's deal flows in an efficient manner. That is why Dialllog was created. Dialllog seeks to overcome this pain point by integrating all aspects of a VC firm into one digitized source of information. Firms using Dialllog will have all aspects of their VC lifecycle in one centralized and interconnected source, allowing them to work smarter and more efficiently. With all the benefits of using CRM regarding a firm's deal flow, why not use such a platform and digitize all your workflows on one interconnected platform? If you are interested in seeing the exciting possibilities Dialllog offers, book a
live demo today!