You need to track deal flow more effectively. What are the top tools you should consider?

Having built/bought and deployed many CRMs and heavily configured software — they all suffer from the same issues — adoption, compliance and poor data quality. The most successful CRM and deal tracking I’ve ever seen is when the primary interface is email. Systems that are designed with email as the primary data input modality (not third-party plug-ins but actual email) tend to have best quality data. On the backend, these systems are designed to ingest email generated data and understand investor workflows and analytics.

As an African VC, I’ll tell you that this has been a struggle for us for years. I often tell my peers to first build out their process with a simple Google form/sheet or Airtable before layering a more sophisticated tool like a CRM. Also, not all CRMs are created equal, and finding the right one for your specific needs, ease of use and budget is important.

At Startup Wise Guys we use Airtable to manage A to Z..deal flow, investments, reporting, etc. Airtable is flexible and can be modified as per VC firms requirements :)

To track deal flow more effectively, CRM (Customer Relationship Management) software is a top tool to consider. From my experience, CRM systems like Salesforce, HubSpot, or Zoho are invaluable for managing and monitoring deal stages, from initial contact to final closure. These platforms allow you to organize contacts, track communications, and set reminders for follow-ups, ensuring no opportunity slips through the cracks. Additionally, many CRM tools offer analytics features, giving you insights into your deal pipeline and helping identify bottlenecks or patterns in your process. Effectively using a CRM can significantly streamline your deal flow management, making it more organized and efficient.

At AlphaHire, we use Salesforce as our CRM software to track deal flow. It provides a comprehensive platform for managing client interactions, monitoring sales pipelines, and analyzing data trends. This enables us to streamline our processes and maintain efficient, client-focused operations. For example, Salesforce's analytics tools help us identify high-potential leads, enhancing our deal conversion rates.

For effective deal flow tracking, considering data room software is crucial. In my experience, tools like Intralinks, Merrill Datasite, or iDeals are top choices. These platforms offer secure virtual spaces for storing and sharing sensitive documents during deals. They provide an organized structure to manage due diligence materials, making it easier to track progress and collaborate with stakeholders. Additionally, data room software often includes features like user activity tracking and document version control, which are invaluable for understanding engagement and maintaining document integrity. This level of organization and security is essential for handling complex deal flows efficiently and effectively.

"Data is a precious thing," Tim Berners-Lee once said. This rings true in deal flow management. For Startups, this tool is pivotal, not just for securely storing documents, but for understanding investor engagement through their interactions. It streamlined their due diligence and gave them valuable insights into investor behavior. The success of this approach was a vivid example of the power of data room software in enhancing deal flow management.

Data rooms are crucial. Irrespective of the actual software provider, it is necessary, that relevant deal information (Vendor DD, Business Plan, Financial Statements, Info Memo etc.) can be securely provided. Depending on the number of potentially interested buyers, isolate access and separate sections are vital, so there are no potential investors "getting in each other's way" along the process (Q&A, information/data requests etc.).

At AlphaHire, we use Google Meet as our primary communication software. It facilitates seamless video conferencing and collaboration, allowing our team to connect with clients and colleagues effectively from anywhere. For instance, we regularly conduct virtual interviews and team meetings on Google Meet, ensuring high-quality, reliable communication.

My organization currently uses multiple communication softwares, but is tilted towards entire Google and Microsoft suites. In my experience, identifying the issue to be resolved is as important as the software to be used. We also conduct regular learning sessions to keep our team updated, upskilled and efficient.

Looking back at a tech startup I worked with, their use of communication software for deal flow was a game-changer. They used it to keep everyone, from team members to lawyers, in the loop. What stood out was how it synced with their CRM and data room software. This integration meant everyone had real-time access to the latest updates, which was critical during fast-paced negotiations. It turned what could be a chaotic process into a more streamlined and efficient one, making communication a real asset in their deal-making arsenal.

In my experience, an intelligence software helps a hands - on investor to bring value to the board table in the form of actionable insights enabling the business to take appropriate course correction measures and conserve capital and other resources. In my organisation, we use Tracxn database to narrow down our search for good opportunities.

At AlphaHire, we use Crunchbase coupled with analytics via IBM Watson as our intelligence software. It enhances our data analysis and decision-making processes with its advanced AI and machine learning capabilities. For example, Watson helps us in parsing through large datasets to identify trends and insights in the recruitment industry, significantly improving our strategy and operations.

"Knowledge is power, especially in the fast-paced world of investments." I think about how intelligence software becomes a game-changer in managing deals. Consider a dynamic fintech startup I came across. They embraced intelligence software, not just as a tool, but as a game-changer. It offered them invaluable insights into market dynamics, a clear understanding of their competitors, and critical metrics for valuations. This wasn't just about enhancing their existing deal analysis; it was about empowering their discovery of new, promising opportunities perfectly aligned with their strategic vision.

Take Sequoia Capital as an example. This venture capital firm, renowned for investing in giants like Apple and Google, harnesses automation software to elevate their deal flow management. It's a game-changer for them, allowing for a seamless integration of data and communications related to prospective investments. At Sequoia, automation isn't just a tool for quicker data handling or managing investor relations; it's a key to more efficient due diligence processes. This technology enables the Sequoia team to focus on their strengths: making smart, timely investments.

Portfolio management and investor relations software can be useful for gathering and maintaining key metrics or documents relative to investments in funds or portfolio companies. Examples of solutions in this space are Anduin and Standard Metrics.

Deal Flow Management Platforms: Salesforce HubSpot Pipedrive CRM (Customer Relationship Management) Software: Zoho CRM Insightly Microsoft Dynamics 365 Project Management Tools: Trello Asana Monday.com Email and Communication Platforms: Gmail with add-ons like Streak or Yesware Microsoft Outlook with integrated tools Data Analytics and Business Intelligence Tools: Tableau Power BI Google Analytics Document Management Systems: Google Workspace (formerly G Suite) Microsoft 365 Dropbox Business Workflow Automation Tools: Zapier Integromat Tray.io Financial Modeling Software: Excel (with financial modeling templates) QuickBooks Oracle Financial Services Analytical Applications (OFSAA) Collaboration and Communication Platforms:

Tracking deal flow is a mess. Yeah try some CRM software. Salesman use that. Did you get into VC to be salesperson? Good deals will stick in your mind and you shouldn’t need software if you’re any good.