29/12/2015

Startup Evaluation Tool

Where do the good deals come from?

The insight gained from IV Score

IV Score gives us a rough indication of the quality of deals coming from different sources.

Let’s sort this from the largest to the smallest IV Score:

  1. Follow-on — 12.75
  2. Incubation — 12
  3. Venture partner — 11
  4. Co-investor — 10.43
  5. IV Score — 9.06
  6. Active research — 7.75
  7. Social media — 6.5
  8. Introduction (excl. co-investor) — 6
  9. Event — 6
  10. Website contact — 5.07
  11. Portfolio founder — 4
  12. Accelerator — 1.71
  13. Angel network — 0.75
  14. University — negative 3

IV Score ranges from negative 30 to positive 30. The trend shows that scores above 7 are good. We only take IV Score as an objective indicator and don’t give it much weight in our decision making. Nevertheless, it would be interesting to see what other insight we can gain from it.

Taking a frequency histogram, we see the most instances occur between 7 and 13 meaning the total deal flow is good. There is an expected long negative tail. The average of the deals that got funding is 12. The highest funded deal got an IV Score of 18.