Deal Feed Newsletters Reveal Golden Nuggets for Investors – TechCrunch

Will Y Combinator finance 1,000 companies per batch one day? Its chairman, Geoff Ralston, doesn’t think it’s impossible. But for the tech press, that possibility creates a conundrum: we can do our best to pick favorites, but we can’t cover every promising startup at its beginnings.

This turns out to create an opportunity for an emerging source of startup curation: deal flow newsletters.

“The early part of the tech industry is worth documenting because that’s where every startup’s journey begins, and there are so many compelling ideas being tried out,” said Martin Bryant, whose newsletter PreSeed Now was launched today. “The sweet spot for this newsletter is for businesses that have gone beyond an idea on the back of a napkin but have yet to raise external capital investment.”

Investors are the target audience for PreSeed Now and its peers, such as Spain’s Vermú. Britain’s new newsletter doesn’t have any numbers to share yet, but Vermú does, and they show proof of demand: it garnered 4,500 subscribers in just a few months.

Do investors want what deal-flow newsletters offer? And what about newsletter creators and the startups they feature? Let’s dive into it.

The paradox of choice

There are several reasons why investors sign up for a deal feed newsletter, Bryant and Vermú co-creator Aitor Rodríguez told TechCrunch.

Business angels are a big part of the readership, as are startup VCs – both types of investors are constantly on the lookout for exceptional startups to add to their pipeline. As for later-stage funds, they like companies to show up on their radar well in advance to find out what’s coming.

Harry L. Blanchard