Traditionally, sourcing new deal opportunities was a time-consuming process that relied  on personal networks, banker contacts, and internet searches.

One problem? A lack of private market corporate data on a company’s financials, the leadership team, capital raise history, and private market transactions. This meant investors  were overwhelmed with research and data analysis to identify investment opportunities.

This is especially challenging for private enterprises in the middle market given the limited  information disclosed by companies. While regulatory authorities are requiring more disclosures for larger players, many middle-market companies are too small or lack the resources to disclose the information required for an investor to evaluate them. As a result, many attractive investment opportunities are overlooked in the middle market..

Stick with us to explore  market mapping tips, and learn  how an AI deal-sourcing platform is  upending the market mapping process.

 Four Ways Market Mapping is  Critical in Deal Sourcing

Market mapping refers to researching all of the potential companies in a given space, and  plotting them on a grid for  users to better understand where a company should be positioned in relation to a competitor. 

The process is invaluable as it enables companies, private equity and investment firms, and bankers to understand the competitive aspects of a market and define the true market opportunity.  Further it allows them to refine their investment thesis, develop expertise in specific sectors, and identify ideal targets. For instance:

  1. Identify investment opportunities: By analyzing the market structure, trends, and competitive landscape, investors can identify untapped opportunities and potential risks, helping them make informed investment decisions.
  2. Understand the competitive landscape: A competitive analysis helps investors understand the challenges that potential investment targets may face, enabling them to identify companies that are well-positioned to succeed.
  3. Mitigate risks: By understanding market trends and potential disruptors, investors make informed decisions about their investment strategies and mitigate risks.Plus, they can better understand adjacent markets and where future competitors or opportunities might arise.
  4. Evaluate potential acquisition targets: By analyzing a company’s financial statements and key metrics, investors can determine whether a potential acquisition target meets their investment criteria and has the potential for future growth.

As an operator of a company, investor, or deal maker, it’s critical that you understand the competitive market that you’re operating in. The  best way to do so  is by keeping a current market map of your competition. That means you’ll have to find deals, evaluate them and pitch them to clients. The good news is that there are plenty of tips, tools and technology  out there designed for this purpose. 

AI Enhances Your Market Mapping

Cyndx uses AI  to ingest  up-to-date data and analyze millions of companies and transactions.  In minutes, teams go from identifying a company name or sector to informed market maps with unmatched precision. 

Cyndx’s Finder tool allows you to create a market map using concepts or by identifying the most relevant companies based on the company of most interest to you.  This allows users to find companies that might be good investments based on past performance and trends in funding. Some functionalities include: 

  • Track and translate companies from their native language to ensure you are aware of potential threats from competitors around the globe. 
  •  Identify competitors in a particular sector or theme. You can search around a company, or by using “concepts” to describe the space you are interested in.
  • Provide a view of subsidiary relationships, industry classifications and company-identified competitors, as well as customers, suppliers, and partners.
  • Provide company-identified competitors, named by the company itself, either publicly, through filings, or on a website. 

Use AI to Market Map Your Next Deal 

By providing unique visibility into company-identified competitors and offering strategic insights from their public statements or disclosures, Cyndx deepens your understanding of their strategic positioning. 

Our platform is an AI-enabled deal search and discovery tool crafted to streamline deal origination. Instead of relying solely on historical data, Cyndx leverages artificial intelligence  and natural language processing  to assimilate and analyze millions of companies and transactions.

With Cyndx, you gain access to data for over 27 million companies and investors, enhanced by robust analytic tools for unparalleled discovery. Our proprietary AI enables investors to pinpoint the most relevant investments, co-investors, acquisition opportunities, and companies expected to raise additional capital within the next six months.

Interested in learning more? Schedule a demo.