The number of VC investments has been increasing rapidly over the past decade. And the number of deals as well as the size of investments is increasing along with the number of stakeholders. As a result, with an increased flow of information, the task of tracking the activities of a fund and maintaining LP-GP relationship becomes quite arduous.
As a VC, how do you stand out and enhance your productivity? The competition among VCs is getting intense. More and more corporates are entering the VC game. Last year more than 260 corporate venture funds invested for the first time.1 Amidst this brewing competition, the hunt to identify the next unicorn is on.
Let’s say you have identified and invested in the next unicorn. Now you must monitor your investment and report to your Limited Partners (LPs). VCs waste a colossal amount of time preparing LP reports and keeping up with the stringent demands of their LPs. In large firms, even more time is consumed in double checking many documents internally. Using email, as a means of internal communication is the yesteryear way of doing things.
Kushim’s Portal is the gateway to optimizing LP reporting, maintaining transparency and improving the LP-GP relationship.
What does the Portal offer?
Keeping your LP’s informed dynamically
Portal’s dashboard features various sections which are crafted in a user-friendly way. The statistics section empowers the LPs to view essential stats such as amount of money invested per month, number of companies in the dealflow, number of companies accepted, rejected and under considerations and much more. Your LPs can have a brief look at the portfolio companies profiles, as well as other companies in the dealflow.
The news section of the portal showcases news about the portfolio companies. Keeping in mind customization aspect, Portal allows users to add specific news and announcements for your LPs. For instance, adding relevant articles from other websites takes just a few clicks. In addition, the event section allows you to organize exclusive events and invite your LPs in a completely hassle-free way.
Now let’s talk about the dreaded monthly reports about your activities which you have to prepare and send to LPs. The Portal gives you the option to automatically email the latest reports to your LPs. Hence you can sit back and focus more on finding the next unicorn.
The power of collaboration and access at your fingertips
The portal is not just a gateway to provide information to your LPs. In fact, it gives you the power to collaborate not only internally but also externally. Hence taking the LP-GP relationship to another level. You can share relevant documents such as pitch decks, annual presentations or statistical reports with your lawyers, accountants and advisers via the portal.
There are two access levels for GPs to share dealflow data. The first level is for ambassadors who can see general dealflow statistics and companies under consideration while the second level is for affiliates who are the trusted third parties invited by the ambassadors.
You can absolutely control the access rights of every individual you collaborate with.
Sharing and growing
Many research studies have shown that VCs can improve the performance of their ventures by sharing their dealflow and networking with other VCs. You can share your dealflow with other investors and reap the networking benefits. Since, the portal fetches you with networking benefit, it also helps you find new LPs to raise new funds.
The Portal in action – The Case of Energy Impact Partners
Founded in 2015, Energy Impact Partners LLC (EIP) is a venture capital firm based in New York. EIP invests in energy efficiency and sustainable energy generation distribution such as smart buildings, smart grid, energy storage, power management, data management and analytics, and comprehensive energy services.
Having an elephantine fund size of more than $500 million, one of the key issues EIP faced was that of communication. Managing relationships with more than 600 stakeholders was quite problematic for EIP. Additionally, EIP was also looking for a transparent and simplified way of maintaining their relationships with their Limited Partners.
To solve this problem, Kushim built the Portal. The Portal enables EIP’s LPs to actively participate in their internal processes by helping them find all the relevant information swiftly and easily. Portal also enhances the communication among the various stakeholders of EIP by providing them with a platform to connect and share dealflow.
Thank you so much for reading. I would love to read your comments and to know more about the Portal you can request a demo by clicking below.
To read more about the case study with EIP click here