Key takeaways
- Sourcing is the activity; deal flow is the result.
- Track the source of every deal, so you know which channels work.
- An easy, clear application route is a sourcing channel too.
Common deal sourcing channels
| Channel | Effort | What to record |
|---|---|---|
| Inbound applications | Low per deal, high in volume | Which page or campaign brought the founder |
| Referrals | Relationship building over time | Who referred, and their relationship to the founder |
| Outbound research | High per deal | The market map or thesis that led there |
| Scouts | Program set-up and upkeep | Which scout, and any conflict |
| Events and programmes | Time at demo days and pitch events | Event name and date |
An example
A fictional pre-seed fund tags every deal by source. After a year it sees that founder referrals produce a small share of deals but a large share of investments, and that one accelerator's demo day produced none. It spends more time with portfolio founders and less at that event.
Sourcing and a fund's application route
Founders judge a fund by how it treats applications: a clear form, a receipt and a reply. A startup application portal with private referral links lets the fund see where each deal came from. Delsivo's branded portal is designed to offer a public link, private referral links and analyst-created records, planned for the Pilot release.
Common confusions
- Deal sourcing versus deal flow: one is the work, the other is what arrives.
- Inbound versus outbound: inbound waits for founders; outbound goes to them.
- Volume is not success. Measure investments and strong passes by source.