Deal Flow Is Dead, Long Live Thesis Driven Investing

"Deal flow has long been regarded as the lifeblood of venture capital and the primary point of competitive differentiation between venture firms. To this end, its not uncommon to hear venture firms publicly boast about this or that proprietary source of deal flow or to hear limited partners studiously inquire about which firm has the highest quality deal flow. While deal flow undoubtedly remains an important part of venture capital, changes in the venture industry are making deal flow far less important and rapidly making deal flow-centric business models unsustainable for all but a few venture firms."

[Burnham's Beat]