Finding the Right Deal Is Frustrating

It has killed me that I haven't done a deal since August. I haven't even issued a term sheet. Well, maybe half of a term sheet in a structured growth round (will explain in a later post).

Our deal sourcing activities at DWP Capital are bearing fruit - we are seeing tons of stuff. In January, we spoke to 50 founders and are looking to eclipse that number in February. I just haven't found the perfect mix of founders + opportunity that I like enough to make a deal with.

There are so many variables that I look at measuring an opportunity. I am not going to say that there aren't any "good deals or it's too expensive" out there, which many VCs say that are not writing checks. I am just not getting moved yet.

At the end of January, I started questioning if my aperture was too small for finding opportunities. Am I being too picky? So I spoke to a colleague of mine, Vickram Pradhan from Sopris Capital, regarding conversion rates with their pipeline (11-person deal team.)

From looking at my sample size, he told me that it would be too difficult to say if my target needs to be re-evaluated. I most likely needed to increase the top of my funnel to determine that. Onwards.

My eyes and ears are wide open to the market. I will show up and continue speaking to founders and adding goodwill to the community. Sets and reps create mastery, and I have just begun my journey as a solo GP emerging manager.