Papers for

venture capital analysts

Papers whose findings have a practical use for this group, as judged from the abstract. Open a paper to read what it means in practice.

Dealflow system helps early stage venture funds better triage startup pitches

DealsFlow: An Evidence-Gated Agentic Harness for Venture Capital Deal Triage

Abstract: Large language models (LLMs) can read startup pitch decks, but letting them emit investment scores directly invites score inflation, run-to-run variance and rationales that are hard to audit. We describe DealsFlow, a human-in-the-loop agentic harness deployed at a UK early-stage fund. The LLM reads the deck, cites evidence and rates each category; code combines the ratings, caps them and only ever lowers them. Three mechanisms implement this: a stage-aware corroboration ceiling (78, 70 or 60 out of 100) on factual categories without external evidence; a sceptic call that may lower but never raise a score; and a pre-fetch pattern that retrieves and indexes all evidence before a single generation pass. We evaluate on $N=243$ SEIS/EIS investments with recorded outcomes. Because recent investments have unresolved outcomes, we use the 142 that are at least three years old. There, the full pipeline's score has Spearman $ρ=0.45$ (95% CI 0.32 to 0.57) with the total-value multiple and AUC 0.71 for identifying write-offs, against $ρ=0.38$ and AUC 0.68 for an unconstrained LLM. The gain is small and comes mostly from the sceptic call; we did not test whether its lower-only rule matters. Investments that later exceeded $2\times$ had 64% of factual categories corroborated, against 38% for write-offs (omnibus Kruskal-Wallis test over five outcome groups, $p=0.031$), and our retrieval was not date-restricted, so these figures may overstate screening skill. In a study of 20 inbound applications, analyst time per application fell from 44.7 to 18.9 minutes including verification and correction, and 84% of 240 cited claims were fully supported by their sources, but 70% of reports needed at least one correction.

Fri 23 OctArtificial Intelligence
The gist
Deciding which startup pitches are worth investing in is hard and time-consuming. The authors created DealsFlow, a system that uses a large language model to read pitch decks and rate them while only lowering scores based on strong evidence. This approach reduces bias and makes the scores easier to verify. They tested it on past investments and found it slightly better at identifying bad deals, and it cut analyst review time in more recent applications. However, many reports still needed corrections.
Open → 2610.32380v1