Digitisation and its impact on match making

18. May 2017

Digitisation has had a huge impact on how the investment lifecycle works. A big part of the drive towards a more digitalised cycle has been done through online investment platforms. More specifically, these platforms have made deal matching much more straightforward and enhanced the quality of deal making.


Investment opportunities are increasing

The digitisation of finding deals has largely been driven by the increase in investment opportunities. Globalisation has made the marketplace wider and technology adaption has opened doors for new types of business opportunities, such as in the case of the fintech sector. For investors, these two trends have meant that deals have become abundant – opportunities to invest are everywhere and online platforms make it easier to keep up with investments.

Since increasing investment opportunities also mean tougher competition, specialised platforms have started catering for investors and businesses. Deal matching in this competitive and abundant landscape would be difficult without the ability to identify the right deals quicker, which has helped increase the popularity of platforms –online tools are better at matching the right investor with the right deal without a lengthy process.

The advantages of digital deal matching

Digital matchmaking is beneficial for investors and businesses alike, which means more platforms are appearing on the marketplace. The most obvious benefit is the widened network – even when matchmaking might not result in an investment deal, the connections can pay a dividend later down the line.

Furthermore, digital platforms have taken transparency to their heart – the matchmaking process is structured and the information is available for both parties. Because the process is digitalised, technology helps ensure the process is also faster and more focused on connecting the right investor with the right investment. Digital platforms are able to utilise artificial intelligence and Big Data to ensure the investment matches fit the description and are not done using a ‘needle in the haystack’ approach.

It’s also worth noticing how much digital deal matching reduces the burden of due diligence. Investors and assets are fully vetted on these platforms, ensuring you don’t have to focus too much energy on finding out information about the possible partner. Digital platforms also often help with sharing information and responding to any regulatory requirements, the investment process will need to deal with. Overall, the process becomes streamlined and straightforward.

Utilising platforms in deal matching

When it comes to helping assets meet investors, numerous platforms are available for investors. Some of the most popular platforms include:

  • Crunchbase – An accelerator platform that connects investors with businesses and startups.
  • AngelList – A startup platform for early stage investments.
  • Drooms DEALFLOW – A deal exchange platform for private equity and M&A investments.
  • Investopad – An early stage tech incubator and seed investment platform.
  • FNEX – A private securities marketplace, enabling investors to make investments in private companies, hedge funds and other investment vehicles.
  • Nasdaq – An investment marketplace not just for making stock investments, but more recently also to allow alternative investments.

As the above shows, the variety of platforms means the opportunities for investment are at your fingertips. Investors can utilise specialisation and broaden their horizons in terms of finding investment opportunities.