How to Discover Quality Investment Opportunities
By Ninie Verma, Content Associate, 1stCheque by Favcy
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- What is the secret formula that differentiates highly successful investors?
- What habits can you adopt in your investment journey to become like them? Read on to know!
Unless you’re a “super” angel who is constantly being approached by startups, finding promising investment opportunities is a major obstacle for the majority of angel investors — especially those just starting out. Getting access to what is commonly referred to as “quality deal flow” is the first hurdle in establishing yourself as an angel investor. But what are the markers of quality, and how can a new investor get access to the same startups as the top angels and VCs?
The good news is that angel investing is becoming more accessible than ever before. Even new angels who are investing small amounts can participate in very promising startups. We’re here to share some effective strategies that will put you in a position to see high-quality startups as the norm.
What is quality deal flow?
Deal flow broadly refers to the rate at which angel investors receive business proposals and their quality. Quality deal flow is distinct– and obviously more sought out–because it refers to the rate at which angel investors receive business proposals from startups that have the potential to generate above average returns for their investors. AKA the businesses that you actually want to hear from.
Markers of Quality
What do we mean by markers of quality? In addition to the usual criteria –making sure you have a grasp of the technology, looking at the backgrounds of the management team, and understanding the market – you should also look for this key marker of quality: affiliation.
Affiliation refers to a startup’s connection/relationship with a reputable incubator, research institution, university, lab etc. Many investors use affiliation as a first step in their search for quality deal flow.
Looking at a startup’s connections has proven to be a success marker. Affiliations with a respected group or institution is often a signal that the startup has been vetted to some extent and will have a quality team, business idea, and technology.
1stCheque's Formula for Quality Dealflow
We're called 1stCheque by Favcy for a reason ( also 1stcheque also sounds like 1st check, which is what we do).
The 1stCheque platform exclusively only showcases deals that are backed by India's largest venture builder, Favcy.
What does this mean?
This means that every startup showcased on our platform has gone through a hefty process of pre-vetting and risk-mitigation.
Aside from the startup's trustworthy team, there is a massive force (aka Favcy's team) who has dedicated their time and resources to ensure that the startup has what it takes.
We focus on bringing you the most quality deals - which is also why our deal-flow us restricted to a maximum of one deal per month ( we believe in quality over quantity).
But coming to the question, where can you find quality deals?
In the dark ages, quality deals were hard to find if you weren’t plugged into either a major financing center (think NYC, Boston, and–of course–the Silicon Valley) or powerful angel groups.
Today’s sources for finding quality deal flow have increased and include a proliferation of angel groups, which are geographically-based and often affiliated with universities and other institutions. For those wanting to attend meetings and be part of a group, angel groups are a great way to find quality (albeit limited) deal flow.
A second option, which is growing quickly as the most accessible way to find quality deal flow is through online investing platforms - like yours truly, 1stCheque.
Consequently, you must always double-check the reliability of your investment platform and perform your own due diligence before making an investment.
To see open deals here on 1stCheque CHECK THIS OUT!