From the course: The Data Science Playbook for Private Equity and Venture Capital

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Using data science to enhance deal sourcing

Using data science to enhance deal sourcing

- [Instructor] Data-driven deal sourcing provides a great example of how data science can be incorporated by private equity and venture capital firms. A key part of the data science playbook is documenting the steps involved so that at the portfolio company level and at the private equity or venture capital level lessons can be learned and shared in the future. So let's add to the data science playbook in a systematic way to think about deal sourcing methods and the data to support it. There are internal sourcing methods. In this case, companies screen using licensed databases, networking, industry-specific conferences, trade blogs, and cold calling. There's also externally sourced methods such as introductions from investment bankers, brokers, boutique M and A firms, as well as industry consultants. Predictive modeling can be applied to deal sourcing. Specifically, you can start with basic company screens to filter the…

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