What are the best methods for deal sourcing in regulated industries?

Thought leadership is key here, and then working through the network of key stakeholders to create a central, critical mass. For instance, government, academia, lobby groups. Also, it is key to continually engage and provide value beyond festive greetings. Roundtables, get togethers are critical.

From my experience, in regulated industries, the best methods for deal sourcing often involve a combination of networking, strategic partnerships, and staying informed about industry developments. Establishing relationships with key players, attending industry events, and leveraging professional organizations can provide valuable insights. Additionally, thorough due diligence, compliance checks, and understanding regulatory frameworks are crucial to ensure that potential deals align with industry standards and legal requirements.

In regulated industries, networking with industry insiders and attending niche conferences are key for deal sourcing. Establish relationships with regulators for insights and opportunities. Use specialized databases and platforms that track industry transactions. Leverage partnerships with legal and financial advisors familiar with regulatory landscapes. Also, monitor patent filings and regulatory approvals to identify innovators and market entrants early.

Leverage professional networks and industry associations. Attend conferences, seminars, and events to connect with key players and stay informed about potential opportunities within the regulatory framework.

Many have affirmed, and it remains evident today, that we constructed an unparalleled origination machine at Audax Group in the early 2000s, setting a standard in private equity that persists. The key lesson learned was diversifying feeder groups. Attending unique conferences and engaging with individuals outside the conventional circles, such as university professors, lawyers, and accountants, proved essential. Thinking outside the box and leveraging sector expertise allowed us to uncover deals not on the mainstream radar, differentiating our firm and deals from the rest.

Stay updated on government agencies and regulatory bodies. Monitor reports, publications, and announcements for insights into upcoming changes, projects, or partnerships that could present investment opportunities.

"In the world of regulated industries, knowledge is power. Unveiling investment gems through thorough research on industry trends, challenges, and emerging startups. Stay informed, stay ahead. #MarketResearch #InvestmentInsights #RegTech"

Let’s shed some light on understanding what the combination of research & networking can achieve. Deal sourcing is all about having a pipeline. Can you create a funnel / an ecosystem that ensures enough deals are being pumped through. Now for achieving this you need to develop track record , identify the right partners in the industry ; founders and fellow VCs ( syndication a great way to keep an active pipeline). All this starts with researching the current trends , relevant industries and database Platforms.

"Breaking the mold in deal sourcing! Embracing creative experimentation to discover untapped potential. From hackathons to AI tools, let's explore innovative paths to investment success. Join the journey! #CreativeInvesting #DealFlow #Innovation"

"Strength in unity! Actively collaborating with like-minded investors and partners to amplify impact. Building synergies, expanding networks, and driving positive change in regulated industries. Let's co-create value! #Collaboration #InvestmentPartnerships #ImpactInvesting"

"Continuous learning fuels success in the dynamic world of regulated investments. Adapting and evolving with every experience, failure, and triumph. Join me on the learning journey towards smarter, more informed investments. #ContinuousLearning #InvestmentWisdom #AdaptAndThrive"

Revolutionize VC: Don't do 'common network strategically.' Real gems are hidden off the beaten path. Change agents are born in basements. Don't bother with "research extensively." You get real insights by working on problems in the real world, not by digging through data. Then, do experiment creatively, means to see mistakes as opportunities to learn and grow. Also, work together actively, indeed solo routes can lead to treasures that haven't been found yet. One-way trips can stand out from the rest. Adopt the "Learn continuously" attitude; real growth comes from changing your ideas, not just getting older. If you have wild ideas, go for it. Every big company has once been brave enough to go against the grain.

Maintaining a focus on compliance and regulatory aspects is crucial in regulated industries. Many VC's and private lending forums are ready to be more compliant with government regulatory initiatives (strict compliances) or the needs of the industry (carbon credits and ESG). Sourcing the deals is strategically conducted through conferences, regulatory forums, and trade associations. Collaborate with regulatory experts and legal firms, and explore government procurement. tie strategic partnerships, leverage market research, and participate in technology hubs. Prioritize compliance and legal considerations; seeking expert advice throughout the process is of the utmost importance

The energy industry is heavily regulated and LinkedIn has been very valuable for deal sourcing. We use LinkedIn Sales Navigator to query our target accounts and appropriate decision makers and then conducted manual and personalized outreach. We often check the company deal history in pitchbook or crunchbase to see if the company has raised previous rounds of institutional capital. I've also found that by liking relevant companies and posts than over time the LinkedIn algorithm has presented me with very relevant posts that can often turn into more deal flow. So both the regular LinkedIn feed and the Sales Navigator query tool have been our best source of proactive new deal flow. We also visit industry trade events and appreciate referrals.

Ethical compliance is a fundamental principle in the regulatory framework, which defines how Generative AI ?? runway should unfold, in the future of humanity. This is vital for sustainable growth and development of society.

Considering what has assisted me in past for sourcing a deal was based on mix n match of various options. 1. Building relationships with industry peers, attending events, and joining professional (Networking) has lead to potential deals. 2. Brokers or intermediaries within the field comes across as great help in accessing the off-market deals or those not publicly available 3. Partnerships and Alliances, Collaborating with complementary businesses or strategic partners have also lead to the shared opportunities and deal flow. Combining several of these methods, tailored to the specific industry and objectives, often leads to a diversified and effective deal sourcing strategy.