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Filtering is the discipline that turns dealflow into real opportunities.
It’s the process of narrowing your pipeline to startups that truly fit your thesis—and doing it fast enough to stay competitive.
A structured, repeatable filtering process saves time, improves judgment, and ensures your energy goes to companies with the highest potential. This article shows how to design filters that align with your thesis, automate early screening, and communicate clearly with founders.
Your Filter starts with your Thesis
Your thesis defines what belongs in your fund—and what doesn’t. Use it to build your filtering layers.
- Set first-stage criteria. Use your thesis to define baseline parameters—sector, geography, stage, valuation range. Anything outside these bounds exits early.
- Guide second-stage focus. Your thesis also determines what to emphasize in deeper evaluations: founder quality, market traction, defensibility, or differentiation.
- Define your “ideal company.” Keep a clear written profile of what a perfect deal looks like. It ensures consistency across all reviewers.
Example: Jessica Kamada at Swizzle VC has a memorable four-word summary of her thesis ("Women's Health and Wealth") that turns everyone she meets into a deal sourcing scout. She's ready with additional clarity on check size, geographic focus, and company stage criteria to refine deals as they come in.
First-Stage Filters
The first filter screens out clear mismatches before significant time is spent.
- Check for thesis fit. Immediately assess sector, geography, and stage alignment.
- Review materials. Only advance companies with a complete, professional pitch deck and data materials.
- Automate where possible. Use tools or CRMs like Decile Hub to tag and sort deals based on keywords or metadata for faster triage.
Example: A seed-stage AI fund uses Decile Hub's AI screening feature to automatically rate deals based on thesis-relevancy as soon as they enter the CRM. Screening time drops significantly—managers can now pass on irrelevant deals with the click of a button.
Second-Stage Filters
This stage is where human judgment sharpens the signal.
- Run a focused first call. Evaluate founder clarity, problem understanding, and early traction within 30 minutes.
- Conduct pre-diligence. Ask key questions to expose core risks: market size, customer validation, scalability, and team depth.
- Say no gracefully. Declining well builds goodwill. Offer short, honest feedback or a helpful introduction when possible.
Example: In a first call, an investor learns a SaaS company’s customer retention is below 50%. The fund passes but connects the founder to a mentor specializing in churn reduction—leaving a positive impression for future rounds.
Iterative and Improve
A deals filter is a living system. Refine it continuously as your thesis and market evolve.
- Review past decisions. Revisit deals you passed on—did any become winners? Adjust filters accordingly.
- Update with thesis shifts. When your thesis evolves, update your screening rules to stay aligned.
- Invite peer feedback. Share your filtering criteria with trusted peers or mentors to uncover blind spots.
Example: After 20 second-stage calls, a VC notices the best filter isn’t financial—it’s human. She realizes she’s testing for coachability, founder-solution fit, and ambition. She replaces questions about unit economics with prompts designed to reveal how founders think, adapt, and drive progress.
The Bottom Line
Great filtering balances speed with conviction. By structuring your process around your thesis, using clear two-stage filters, and refining regularly, you’ll consistently advance only the strongest opportunities—and maintain trust with founders along the way.