“A start-up investors’ network and reputation will deliver both quantity, and quality, of opportunities.”
One of the most effective ways to ensure the highest quality of companies to back is a simple numbers game. The quality of a portfolio of start-up investments is directly related to the number of opportunities the manager can identify and research.
Many potential deals are “off the market” – dependent on invitation or the right introduction to invest. Successful venture capital investors rely heavily on contacts developed over their careers. A good reputation can attract opportunities and open doors. It will have a direct effect on the number of investment opportunities they see, which in turn has a direct impact on the quality of the investments they make. The most successful ventures investors attract the best entrepreneurs and management teams. The best entrepreneurs deliver the best performance.
The Ventures team at Oxford Capital pay particular attention to the pipeline of deals they see. Their network and their reputation in their specialist industries ensure they see as many deals as possible. They make just 4-6 new investments per year, so it is vital not to miss the best opportunities. They now see on average over 200 potential deals per month – and rising! That means we’re reviewing well over 2,000 potential investment deals per year, and seeing more than 70% of industry deals in our target sectors (Crunchbase).
Both the pipeline and the team’s filtering and research to identify the right companies to back are key drivers of quality and risk-control in our clients’ portfolios.
Find out more in our CPD-accredited Oxford Capital Guide to Ventures Investing
