The startup-facing part of a VC investor’s job can be divided into three main parts:
- Getting access to the best deals out there
- Evaluating those deals
- Supporting the portfolio companies
As Peter Drucker once said “you can’t manage what you can’t measure”. So in thinking about how to optimize our top of pipeline at Kaedan Capital, we’ve been very disciplined in measuring and analyzing our deal flow internally for self-improvement.
Having been at this for a while, our realization is that if we can optimize the deal-flow sources we engage with, track the different trends in the ventures’ areas of operation and understand the funding environment in the market, we could stay ahead of our game in getting the opportunity to partner with the best entrepreneurs out there.
For the first time this year, we have decided to share some of the main insights from this internal report, which includes trends in average funding ask, change in the venture’s geographical focus, our commentary on themes we are seeing heat up and more.
Our hope is that this report will provide some perspective for any of you who are now looking for funding or to start a venture. Specifically, the report might help you to better understand the funding environment and trends in the market in the domains you are planning to operate in. All from the eyes of a venture capital investor.
1) Important to say that the verticals we chose and the data we provide aren’t necessarily based on our focus areas of interest. For us, it is always about that brilliant team of entrepreneurs with passion in their eyes, aiming to solve a problem in a large enough market. Whatever that market might be.
2) For no particular reason, our year starts in June (well, that was the month we began to track and analyze the deals we see a few years ago and we never bothered to change it). Looking at the number of deals we review per month, we could really pick any random month to start with, so we ended up having an annual mid-year analysis.