How can you use deal sourcing tools to identify startups with a social impact mission?

1 What are deal sourcing tools?

Deal sourcing tools are software applications or platforms that help investors find, filter, and track startups that match their criteria and interests. They typically use data from various sources, such as public databases, social media, news, events, and referrals, to provide insights and analytics on the startup landscape. Some deal sourcing tools also offer features such as communication channels, collaboration tools, deal flow management, and portfolio monitoring.

2 Why use deal sourcing tools for social impact?

Deal sourcing tools can help you find and evaluate startups with a social impact mission in several ways. First, they can help you broaden your scope and access to diverse and underrepresented founders and markets that might otherwise be overlooked or hard to reach. Second, they can help you save time and resources by automating and streamlining the search and screening process, and providing relevant and reliable data and metrics. Third, they can help you build relationships and trust with founders and other stakeholders in the impact ecosystem, by facilitating introductions, feedback, and support.

3 How to choose a deal sourcing tool?

When selecting a deal sourcing tool or platform, it is important to consider several factors, such as the scope and quality of the data and sources that the tool uses to identify and analyze startups, as well as the customization and flexibility of its filters and criteria. Additionally, you should evaluate the usability and functionality of its interface and features, such as alerts, notifications, reports, and dashboards. Furthermore, it’s important to consider its integration and compatibility with your existing systems and workflows. Lastly, you should assess the cost and value of its subscription or pricing model, as well as the level of support and service that it provides.

4 How to use a deal sourcing tool effectively?

Once you have selected a deal sourcing tool that suits your preferences and objectives, it's important to use it strategically and regularly to optimize your results. To do this, you should define your impact thesis and criteria clearly and consistently, and communicate them to the tool's team or support staff if needed. Experiment with different filters and parameters to find the best combination for your search, adjusting them as you learn more about the market and startups. Monitor and review the tool's recommendations regularly, providing feedback or ratings to improve accuracy. Additionally, follow up with startups that interest you promptly and professionally, using the tool's communication and collaboration features to facilitate dialogue. Lastly, track and measure your progress with the tool's analytics and reporting features, identifying areas for improvement or optimization.

5 What are some examples of deal sourcing tools for social impact?

If you're interested in understanding what deal sourcing tools for social impact look like, ImpactSpace, Sphaera, F6S, and VC4A are some examples of platforms that focus on or cater to impact investors and startups. ImpactSpace is a global database and network with filters for impact themes, sectors, geographies, and stages. Sphaera is a platform that connects practitioners and investors with solutions, data, and resources. F6S is a platform that connects startups, accelerators, and investors with a dedicated section for social impact programs and opportunities. VC4A is a platform that connects African startups, investors, and mentors with a focus on supporting innovation and entrepreneurship for social and economic development. There are many more options to explore if you want to increase your chances of finding and investing in startups that have a positive effect on the world. Utilizing deal sourcing tools effectively can help you do just that.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?