The venture capital landscape has shifted dramatically since the ‘one-day close’ era of 2021-2022. The market is now defined by a stark consolidation: the number of unique active investors has plummeted by nearly 50% from its 2021 peak, and new fund creation dropped to just 538 funds in 2024—the lowest level in over a decade.
Competition has bifurcated; while a rising number of 'zombie funds' are unable to deploy capital or raise follow-ons, top-tier firms are aggressively deploying a remaining $600 billion in dry powder into a narrow set of high-performing founders.
Our comprehensive 2025 deal sourcing guide, based on extensive research and interviews with leading VCs, reveals how successful firms are adapting their sourcing strategies for this new reality. The guide features insights from our predictions survey of nearly 300 dealmakers, and includes perspectives and advice from industry leaders at Kleiner Perkins, Intel Capital, and Earlybird Ventures.
Download the guide now, or keep reading for a sneak peek of some of the insights.
Deal sourcing’s data challenge
The traditional deal sourcing playbook is being rewritten. While relationship-driven sourcing remains essential, more dealmakers are starting to prioritize outbound sourcing.
Andre Retterath, Partner at Earlybird Ventures, explains why: "Historically, around 70% [of deals] were mostly inbound, driven by a great brand [...] We see that as competition increases among investors, a shift from mostly inbound to outbound—meaning investors need to [...] do their homework, desk research, be data-driven, [and reach] out to the most promising founders."
This shift brings new challenges. How do you:
- Identify relevant deals before your competitors?
- Track promising companies without missing critical inflection points?
- Balance relationship-building with data-driven sourcing?
- Use AI and automation without losing the human element?
The guide provides actionable frameworks for addressing these challenges, including:
- Building a robust data platform for precise deal identification
- Implementing AI and automation strategically
- Maintaining strong relationship-driven sourcing in a tech-enabled world
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What role does AI play in deal sourcing?
While 94% of surveyed dealmakers plan to adopt AI, there’s an increasingly mature and nuanced approach to implementation. Rather than replacing human judgment, successful firms use AI to enhance their existing processes and eliminate routine tasks.
Jennifer Ard, COO at Intel Capital, sums this up: "We will never have AI make investment decisions because so much of it is about the relationships; you're investing in founders, you're investing in people. But wouldn't it be great if things like legal documents were automated?"
Download the guide to find out how to maximize value from AI—using it to accelerate, not replace you, in the deal sourcing process.
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Beyond the tech stack
While the guide offers detailed insights on how technology supports more effective deal sourcing, it also shows how top firms maintain the crucial human element in deal sourcing. For example, Robles Ventures sources 88% of their deals through network referrals while still embracing modern tools and techniques.
The complete guide includes:
- Advice building a modern deal sourcing tech stack
- Examples from leading VCs
- Practical frameworks for balancing technology and relationships
- Best practices for relationship-driven sourcing at scale
Don't risk missing promising deals or falling behind competitors in 2026. Download the deal sourcing guide for venture capital to learn how successful firms are adapting their sourcing strategies for today's more selective market.
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