Explore the latest insights from DCA Asset Management’s updated deal pipeline, offering a comprehensive overview of the firm’s Q3 2024 investment data. As the investment landscape continues to evolve, DCA leverages its data-driven strategy to inform investment decisions and identify potential opportunities for its clients.

Q3’24 Deal Spotlight

In Q3, DCA sourced over 650 deals, a significant increase of approximately 100% quarter-over-quarter, driven by new investor networks and VC partnership expansion. However, the number of deals that met DCA’s refined diligence process decreased by 40% quarter-over-quarter, resulting in 76 deals screened for initial management meetings. Notably, DCA invested in a new portfolio company, a college sports media company producing athlete-driven media content and unique in-person experiences for alumni and fans.

A High-Level Look at Q3 2024

Of the 76 screened deals, the geographies with the highest concentration were New York, California, Texas, Arizona, and Illinois. New York led with 14% of the deals, followed by California and Texas with a combined 24%. Arizona and Illinois accounted for 8% and 7%, respectively. Additionally, 9 international deals were screened but not included in the US chart.

Investment Vehicles: Priced Rounds vs. SAFE Rounds

In Q3’24, there was a more even mix of priced rounds (44%) versus SAFE rounds (56%), reflecting DCA’s preference for strong institutional cap tables and co-investor rounds.

Verticals: Focus on Vertical SaaS and Fintech

Vertical SaaS (18 deals), Fintech (11 deals), and Digital Health (10 deals) were the top verticals screened in Q3’24, followed by Consumer (6 deals) and AI (3 deals). This distribution highlights DCA’s continued focus on these high-potential sectors.

Valuation: Consistent Median Valuation

The median valuation of screened deals in Q3’24 was $12M, consistent with Q2’24 and slightly lower than Q3’23’s $12.5M. This stability reflects the firm’s disciplined approach to valuation amidst a dynamic market environment.

Funding Stages: Early-Stage Focus

Q3’24 deals were fairly distributed across DCA’s target early stages, with Seed and Seed Extension deals comprising 50% of the deal flow, followed by Pre-Seed (26%) and Series A (24%).

Data-Driven Deal Analysis

DCA Asset Management remains committed to leveraging data-driven strategies to inform its investment decisions. These insights from the Q3 Active Deal Pipeline offer a glimpse into the firm’s investment philosophy and approach, underscoring its dedication to identifying high-growth-potential startups.

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