Deal origination investment banking is an essential process through which private venture capital and equity firms find, connect, and ultimately close deals for their businesses. This process is also known as deal-sourcing and is vital for these companies to maintain an active pipeline of deals. It can be accomplished via traditional or online methods.

The most popular methods for discovering investment opportunities is to connect with industry professionals and entrepreneurs who can provide unreleased information about a company owner’s plans to sell their business in the near future. Investment companies should be on the lookout for changes in the industry and trends to know what their competition is doing.

Modern investment banks employ Get the facts technology to speed up deal sourcing processes. They employ advanced data analytics, digital tools that are purpose-built, and artificial intelligence. This enables teams to better understand their market and streamline business processes and transform data into private advantages. Private company intelligence platforms and data services are a crucial component of this, as they enable professionals to find and study possible investment opportunities using verified, relevant business information.

Some investment banks have a group of finance professionals who handle deals in-house while others outsource this task to specialist contractors. In both cases, these team members operate on a fee-for-service model, meaning they are paid an amount of money every time they close a deal on behalf of their firm.