Posted in Finance, Accounting and Economics Terms, Total Reads: 410
Definition: Deal Flow
Deal flow is a concept in finance which states number of pitches or business deals received by financial entities like venture capitalists, investment bankers, angel investors etc. This enables to understand what is the performance of a business.
Apart from the existing deals, it is also critical for companies to know what are the new prospects to do a business with. A deal flow simply highlights the health of the financial institutions. If they receive a good number of proposals which are sound financially, and have a bright prospect, then the deal flow is considered to be good.
Deal flows are the inflow of proposals which VC's and other investors get. Mostly they are young entrepreneurs and new businesses which expect funding for their businesses. Networking also plays an important role in getting deal flows. Individuals who give referrals also get a certain fee for their efforts.