Capital Deployed by Month

May 4th, 2011 by Jay Levy View Comments

In our ongoing effort to provide more transparency in the investing process, I’ve charted an analysis of our dollars deployed per month over the course of a few years.

% of Dollars Deployed by Month

As you see there are peaks and valleys in the deployment of capital and I account the cyclical nature of this to a few things:

  • As a small team we typically can only handle so much at once, so when we’re in the process of closing several deals it reduces our time to look at new deals, which creates the pattern.
  • The lift in November and December is due to the use of ‘year-end’ as a catalyst to close deals. Specifically in 2010, there was uncertainty as to whether the tax benefits for investing would be extended, so there was a rush to close any deals in the pipeline.

As a company looking for investments, the chart’s peaks and valleys represent opportune times to pitch. Since it generally takes us between 30-60 days to close a deal, the best period to pitch would be during the valleys, typically January, April, June and October as we are most likely to have the bandwidth to provide the needed attention.

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About Jay Levy

Jay Levy

Jay Levy is a co-founder and principal of Zelkova Ventures. Jay focuses most of his time in working with the current portfolio company and looking at new investments in the software-as-a-service, internet media and green tech space. More »

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