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Investing in startups is a high-stakes game where success hinges on more than just a great idea- it's about the team behind it. In this article, we'll explore startup team risk, why it matters, and how you can evaluate it to make smarter investment decisions. From assessing leadership styles to understanding team dynamics, you'll gain actionable insights into minimizing risks and maximizing your investment potential. Whether you're an investor or a founder, this guide will help you navigate the complexities of startup team evaluation, setting the stage for long-term success. What is Startup Team Risk? Startup team risk refers to the potential challenges and uncertainties associated with the individuals and collective team responsible for driving a startup’s success. This risk encompasses several factors, including the team's dynamics, skill sets, and leadership styles, which can significantly impact the startup's ability to execute its business plan effectively. Team dynamics are crucial in how well team members collaborate and navigate challenges. A team with strong interpersonal relationships and clear communication channels is more likely to work cohesively and make swift, informed decisions. Conversely, poor dynamics can lead to conflicts, miscommunications, and delays, ultimately threatening the startup's progress​. Skill sets are another critical component of team risk. A startup team should have diverse complementary skills, ensuring that all aspects of the business- from product development to marketing- are well-managed. Gaps in key skills or overlapping competencies can create inefficiencies and slow progress​. Leadership style is equally important, setting the tone for the entire organization. Effective leadership inspires the team, fosters innovation, and drives the startup forward. However, weak or autocratic leadership can stifle creativity, lead to poor decision-making, and increase turnover, heightening the risk of failure​. Related resource: The Startup's Handbook to SAFE: Simplifying Future Equity Agreements Why Startup Team Risk Evaluation Matters Evaluating startup team risk is crucial because the success of any startup largely depends on the people behind it. A thorough assessment of the team’s strengths, weaknesses, and dynamics can reveal potential risks that might otherwise go unnoticed. These insights influence investment decisions and impact the startup's growth trajectory. Understanding team risk helps investors make more informed choices, reduces the likelihood of failure, and ensures that startups have the leadership and skills needed to thrive. In the following sections, we’ll explore how team risk affects investment decisions, contributes to startup growth, and offers benefits for founders who proactively assess and mitigate these risks. Investment Decisions Team risk is a critical factor that directly influences investor confidence and decision-making. When evaluating a startup, investors are not just betting on a product or market opportunity but on the team’s ability to execute the business plan effectively. A strong, cohesive team with the right mix of skills and leadership qualities can instill confidence, signaling that the startup is more likely to navigate challenges and succeed. Conversely, a team with noticeable gaps in expertise, poor leadership, or dysfunctional dynamics raises red flags, potentially deterring investment​. Investors often prioritize teams with a proven track record, relevant industry experience, and demonstrated success in previous ventures. These factors reduce perceived risk, as they indicate the team has the knowledge and resilience to overcome obstacles. Additionally, leadership style is closely scrutinized, as effective leadership is essential for maintaining focus, motivating the team, and driving the startup forward​. In contrast, signs of team instability- such as high turnover, lack of transparency, or unresolved conflicts- can severely undermine investor confidence. Even if a startup has a promising product or significant market potential, concerns about the team’s ability to execute can lead investors to hesitate or withdraw entirely from the investment opportunity​. Startup Growth A well-evaluated team is a cornerstone of startup growth. When a startup assembles a team with complementary skills, strong leadership, and effective communication, it creates a foundation to propel the company forward. Such teams are better equipped to innovate, adapt to market changes, and scale operations effectively. Strong team dynamics enable quick decision-making, foster creativity, and build a resilient organizational culture, all essential for sustainable growth​. Real-life examples of startups that thrived due to strong team dynamics and leadership are abundant. For instance, Airbnb’s success can be attributed not only to its innovative platform but also to the complementary strengths of its co-founders. Brian Chesky, Joe Gebbia, and Nathan Blecharczyk each brought unique skills to the table- design, engineering, and business acumen- crucial in overcoming early challenges and scaling the company globally​. Their ability to work cohesively and shared vision for the company allowed them to pivot effectively when needed, such as when they expanded their services to include experiences alongside accommodations. Another example is Slack, which benefited from Stewart Butterfield's strong leadership. His experience and ability to lead a team through developing a successful product (initially as a side project) were pivotal in transforming Slack into a communication powerhouse used by millions of professionals worldwide. The team’s shared commitment to creating a user-friendly, effective communication tool and Butterfield’s strategic vision helped the startup achieve exponential growth​. For Founders Founders can gain significant advantages by proactively evaluating their team's risks. By identifying potential weaknesses or gaps in skills, leadership, or team dynamics early on, founders can take steps to address these issues before they become critical problems. This self-assessment can lead to a more resilient, cohesive team, ultimately driving better performance and increasing the chances of the startup’s success​. Here are a few tips for founders to self-assess and improve their teams: Conduct Regular Self-Assessments: Periodically evaluate the team’s strengths and weaknesses. Use tools like 360-degree feedback or team assessment matrices to gain insights into areas that need improvement. This will help you identify skills gaps, leadership challenges, or communication issues that could hinder progress​. Encourage Open Communication: Foster a culture of transparency and open dialogue within your team. Regularly check in with team members to understand their concerns, ideas, and feedback. This not only helps in identifying potential risks but also strengthens team cohesion and trust. Diversify Your Team: Ensure your team has a diverse mix of skills, backgrounds, and perspectives. A diverse team is more likely to come up with innovative solutions and is better equipped to navigate challenges. Assess whether your team’s current composition allows for this and make strategic hires if necessary​. Invest in Leadership Development: Strong leadership is crucial for any startup. Invest in leadership development for yourself and your key team members. This could include training, mentoring, or simply learning from the experiences of successful entrepreneurs. Effective leadership will help guide the team through tough times and keep everyone aligned with the startup’s vision. Address Conflicts Early: Don’t let conflicts fester. Address them as soon as they arise to prevent them from escalating and disrupting the team’s progress. Implement conflict resolution strategies and ensure that all team members feel heard and valued during disputes​. How to Determine the Biggest Risks for Startup Teams Identifying key risk factors within startup teams is essential for both investors and founders who want to ensure the long-term success of their ventures. Several methods can help uncover these risks, allowing stakeholders to take proactive measures to mitigate them. Conduct Thorough Due Diligence Due diligence is the cornerstone of risk identification. This process involves a deep dive into the backgrounds of key team members, including their professional histories, track records in previous ventures, and any potential red flags such as high turnover or unresolved conflicts in their past roles. This step is crucial for verifying the credentials and experience of the team, ensuring that they have the necessary expertise to drive the startup forward​. Perform Background Checks:Background checks can reveal critical information that might not be apparent in interviews or resumes. This includes checking for any legal issues or past professional conduct that could pose a risk to the startup. These checks also provide insight into the team’s reliability and trustworthiness, which are vital for maintaining investor confidence​. Engage with Subject Matter Experts (SMEs):Consulting with SMEs can provide valuable perspectives on what to look for when assessing team risks. Experts often recommend focusing on the following areas: Cohesion and Communication: Assess whether the team communicates effectively and collaborates well. Poor communication can lead to misunderstandings, delays, and conflicts that could jeopardize the startup’s progress​. Leadership and Vision: Evaluate the leadership’s ability to inspire and guide the team. A lack of clear vision or weak leadership can result in a lack of direction, making it difficult for the team to stay focused on long-term goals​. Adaptability and Resilience: Determine how well the team can adapt to changes and overcome challenges. Startups often face unpredictable market conditions, so a team’s resilience is a key indicator of its ability to navigate adversity​. Observe Team Interactions:Sometimes, the best insights come from simply observing how team members interact with one another. This can be done during meetings, brainstorming sessions, or even in informal settings. Pay attention to the dynamics—whether there is mutual respect, whether disagreements are handled constructively, and whether there is a clear alignment of goals. Positive interactions often correlate with a lower risk of internal conflict and a higher likelihood of success​. Steps for Evaluating the Risk of Startup Teams Evaluating the risk of startup teams is a multifaceted process that requires a combination of structured assessments, personal interactions, and observational insights. The following sections will outline specific steps you can take to thoroughly evaluate startup teams, helping you identify potential risks and make informed decisions. Each step provides a detailed approach to uncovering the strengths and weaknesses of the team, ensuring that you invest in startups with the highest potential for success. 1. Conduct Team Assessments Conducting thorough team assessments is a critical first step in evaluating startup team risk. These assessments provide a comprehensive understanding of the team's strengths, weaknesses, dynamics, and potential areas of concern. Here are some strategies and tools that can help in conducting these assessments effectively: Use a Team Evaluation Matrix: A Team Evaluation Matrix is a structured framework that allows you to assess various aspects of the team systematically. Key criteria typically include experience, skills, leadership, cohesion, and commitment. Each criterion is rated on a scale (e.g., 1 to 5), providing a visual representation of where the team excels and where there are potential gaps. This tool helps in identifying areas that require further investigation or improvement​. Implement 360-Degree Feedback: 360-degree feedback involves collecting feedback from multiple sources, including peers, subordinates, and supervisors, to get a holistic view of each team member's performance and behavior. This method is particularly useful in understanding how team members are perceived by their colleagues and how they contribute to the overall team dynamics. It can highlight strengths such as leadership and collaboration, as well as areas for development like communication or conflict resolution​. Conduct Behavioral Assessments: Behavioral assessments, such as the Myers-Briggs Type Indicator (MBTI) or DISC assessments, can provide insights into the personality traits and working styles of team members. Understanding these traits can help predict how individuals might react under pressure, how they prefer to communicate, and how they are likely to fit within the team structure. These assessments can also identify potential personality clashes that could lead to conflict​. Leverage Psychometric Testing: Psychometric tests measure cognitive abilities, emotional intelligence, and other psychological attributes. These tests can reveal how team members process information, make decisions, and handle stress. By understanding these cognitive and emotional factors, investors and founders can better predict how well the team will perform in high-stakes situations common in startups​. Observe Team Interactions: Beyond structured assessments, observing team interactions during meetings or brainstorming sessions can provide invaluable insights into the team’s dynamics. Pay attention to how decisions are made, how conflicts are resolved, and whether all voices are heard and respected. This observational approach can help uncover underlying issues that might not surface in formal assessments but are critical to team cohesion and success​. 2. Interview Key Team Members Interviewing key team members is a crucial step in evaluating startup risk. These interviews provide a direct window into the team’s dynamics, individual competencies, and potential red flags. To make the most of these interviews, it's important to follow best practices that not only reveal each member’s strengths but also uncover potential risks that might not be apparent from resumes or assessments alone. Best Practices for Interviewing Startup Team Members: Prepare Structured yet Flexible Questions: Begin with a set of structured questions that address the critical areas you need to explore, such as leadership experience, problem-solving skills, and team collaboration. However, remain flexible to allow the conversation to evolve naturally. This balance helps ensure that you cover all necessary topics while also allowing for deeper insights into unexpected areas. Focus on Behavioral Questions: Behavioral interview questions are designed to uncover how candidates have handled situations in the past, which can be predictive of future behavior. For example, asking “Can you describe a time when you had to navigate a significant challenge within your team?” can reveal a lot about the candidate’s problem-solving abilities, leadership style, and resilience under pressure​. Assess Cultural Fit and Alignment with Company Vision: Understanding whether a candidate aligns with the startup’s culture and vision is essential. Questions like “How do you see your role evolving as the company grows?” or “What excites you most about our mission?” can help determine if the candidate is not only capable but also genuinely motivated by the company’s goals​. Successful Interview Techniques Used by Investors: The “Inverted Pyramid” Technique: Start with broad, open-ended questions to let the candidate showcase their overall thinking and approach. Gradually narrow down to more specific queries that focus on their role in past projects or specific situations. This technique helps investors gauge both strategic thinking and attention to detail. The “Five Whys” Approach: This method involves asking "why" repeatedly (usually five times) to dig deeper into the reasoning behind a candidate's decision or action. For instance, if a candidate describes a decision to pivot a product, the interviewer would ask why that decision was made, followed by another “why” based on their response. This technique uncovers the root motivations and thought processes, revealing deeper insights into a candidate's decision-making capabilities​. Stress Testing Questions: Presenting hypothetical scenarios that are intentionally challenging can help assess how candidates handle stress and uncertainty. For example, asking, “If your two top developers left suddenly, how would you handle the project’s next critical deadline?” can reveal their crisis management skills and ability to prioritize under pressure​. Role Reversal Interviews: In this technique, the interviewer asks the candidate to switch roles and act as the interviewer. This can provide insights into what the candidate values most in team members, their understanding of the business, and their critical thinking skills. It also helps to assess how they might approach hiring or managing their own teams​. 3. Analyze Team Members Understanding team dynamics is critical to evaluating a startup's overall health and potential. Team dynamics refer to the relationships and interactions among team members, which can significantly impact productivity, innovation, and the ability to navigate challenges. Positive team dynamics can propel a startup toward success, while negative dynamics can lead to internal conflicts, reduced morale, and, ultimately, failure. Importance of Understanding Team Dynamics: Team dynamics influence how well a team works together, how decisions are made, and how conflicts are resolved. A team that communicates effectively and supports one another is more likely to adapt to changes, overcome challenges, and innovate successfully. Conversely, poor team dynamics, such as unresolved conflicts, lack of trust, or misaligned goals, can hinder a startup’s progress and even lead to its collapse​. Methods for Observing and Evaluating Team Interactions: Participate in or Observe Meetings: One of the most direct ways to understand team dynamics is by observing team meetings. Pay attention to how team members communicate- are all voices heard, or does one person dominate the conversation? Are decisions made collaboratively, or is there tension and disagreement? Observing these interactions provides valuable insights into the team’s decision-making processes and how well members collaborate​. Conduct Team-Building Exercises: Team-building activities can help reveal the underlying dynamics of a team in a less formal setting. These exercises encourage collaboration and can highlight both the strengths and weaknesses of team interactions. The way team members handle tasks together in these scenarios often reflects how they will perform in high-pressure situations​. Use Peer Evaluations: Peer evaluations can provide honest feedback about team members from their colleagues. These evaluations help identify how each member is perceived within the team, uncovering issues like poor communication skills, lack of participation, or conflict-inducing behavior that might not be visible to external observers​. Positive and Negative Team Dynamics and Their Impact: Positive Dynamics: Positive team dynamics are characterized by trust, open communication, mutual respect, and shared goals. In such environments, team members are more likely to share ideas, take risks, and support each other through challenges. This fosters innovation and helps the startup adapt quickly to market changes. For example, companies like Google and Apple have thrived partly due to their strong team cultures, where collaboration and creativity are deeply embedded in their operations. Negative Dynamics: On the other hand, negative team dynamics, such as frequent conflicts, lack of trust, or poor communication, can severely hamper a startup’s growth. Teams that struggle with these issues often face delays in decision-making, reduced morale, and high turnover, which can drain resources and impede progress. In extreme cases, these negative dynamics can lead to the dissolution of the startup. A notable example is the early challenges faced by Uber, where internal conflicts and a toxic culture led to significant setbacks. 4. Evaluate Entrepreneur Leadership Assessing the effectiveness of a startup’s leadership is crucial because strong leadership can make or break a startup, particularly in its early stages. Effective leaders steer the company toward its goals and inspire and empower their teams to perform at their best. Evaluating leadership involves looking at tangible and intangible outcomes that contribute to a leader's ability to guide the startup through challenges and opportunities. How to Assess the Effectiveness of Startup Leadership: Review Track Record and Experience: One of the most direct ways to assess leadership effectiveness is by examining the leader’s past successes and failures. Look at their history with previous startups or relevant industry experience. Leaders who have successfully navigated previous ventures are more likely to possess the skills needed to guide a new startup. However, it’s also important to consider how they’ve handled failures, as this can provide insights into their resilience and ability to learn from mistakes​. Evaluate Decision-Making Skills: Effective leaders make informed, strategic decisions that align with the startup’s long-term goals. Assess their ability to analyze situations, weigh options, and make tough calls under pressure. This can be evaluated through interviews or by reviewing past decisions and their outcomes. Leaders who consistently make decisions that drive the company forward demonstrate a strong understanding of the business and market dynamics​. Observe Leadership Style and Team Interaction: The way a leader interacts with their team can reveal much about their leadership effectiveness. Leaders who foster a positive, inclusive environment where team members feel valued and empowered are often more successful in building high-performing teams. Conversely, leaders who are autocratic or fail to communicate effectively can create a toxic culture that stifles innovation and productivity​. Traits and Skills to Look for in Startup Leaders: Visionary Thinking: A strong leader has a clear vision for the startup’s future and the ability to communicate this vision compellingly to their team, investors, and stakeholders. Visionary leaders are not only focused on current success but also on long-term growth and innovation​. Resilience and Adaptability: Startups often face unexpected challenges, and leaders must be resilient in adversity. The ability to adapt to changing circumstances, pivot strategies when necessary, and maintain focus on the end goal is crucial for startup leaders. This resilience is often a key factor in whether a startup can survive its early stages and grow​. Emotional Intelligence (EQ): Leaders with high emotional intelligence are better equipped to manage their own emotions and understand and influence the emotions of others. This trait is vital for building strong relationships within the team, managing conflicts, and maintaining morale during tough times​. Decisiveness: Startups operate in fast-paced environments where delays in decision-making can be costly. Effective leaders are decisive and able to make quick, informed decisions without getting bogged down by analysis paralysis. This decisiveness must be balanced with careful consideration of risks and benefits​. Integrity and Ethical Leadership: Integrity is the foundation of trust within the team and with external stakeholders. Leaders who demonstrate honesty, transparency, and a strong ethical compass are more likely to inspire loyalty and commitment from their team and foster a positive organizational culture​. Factors to Consider When Evaluating the Risk of a Startup Team Evaluating the risk associated with a startup team involves a comprehensive analysis of various factors that can significantly impact the startup’s success. Understanding these factors can help investors and founders identify potential red flags and proactively mitigate risks. The following sections will explore critical areas to focus on, including experience and expertise, diversity and inclusion, and communication and collaboration. Each of these elements plays a vital role in shaping the effectiveness and resilience of the startup team. Related resource: 9 Signs It’s Time To Hire in a Startup Experience and Expertise The relevance of experience and expertise within a startup team is one of the most critical factors in determining the potential success of the venture. A team with the right mix of industry experience, technical skills, and entrepreneurial know-how is more likely to navigate the complexities of building a startup, avoiding common pitfalls, and capitalizing on opportunities. Here's why experience and expertise matter and how to verify them. Importance of Relevant Experience and Expertise: Industry Knowledge:Teams with experience in the relevant industry are more likely to understand market dynamics, customer needs, and competitive landscapes. This knowledge enables them to make informed decisions, tailor their product or service to market demands, and anticipate industry trends. For example, a team with deep knowledge of fintech is better positioned to innovate within that sector, understanding regulatory requirements and leveraging industry-specific technology​. Technical Skills:Expertise in key technical areas, such as software development, product design, or operations, is crucial for executing the startup’s vision. A team with these skills can efficiently build and scale their product, maintain quality, and optimize processes, all of which are essential for growth. A lack of technical expertise can lead to delays, increased costs, and product failures​. Entrepreneurial Experience:Previous startup experience, particularly in founding or scaling a company, provides valuable lessons that can be applied to new ventures. Teams with this background are often more adept at fundraising, managing resources, and pivoting strategies when necessary. Their experience can help them avoid common mistakes that first-time entrepreneurs might make​. How to Verify Team Members’ Credentials and Past Successes: Review Professional Histories:Start by examining the resumes and LinkedIn profiles of key team members. Look for evidence of relevant experience, such as previous roles in similar industries or successful stints at other startups. Pay attention to the impact on those roles, such as leading successful projects or driving growth initiatives. Check References and Testimonials:Contact former colleagues, supervisors, or business partners to gain insights into the team members’ work ethic, problem-solving abilities, and professional reputation. These references can provide a more nuanced view of their capabilities and how they performed in real-world situations. Testimonials from credible sources can also bolster confidence in the team’s expertise​. Investigate Past Achievements:Look for concrete evidence of past successes, such as successful product launches, awards, or significant contributions to previous companies. This might include case studies, press coverage, or documented outcomes that showcase their ability to deliver results. Such achievements are strong indicators of the team's potential to succeed in their current venture​. Analyze Publicly Available Information:Use tools like LinkedIn, industry publications, and databases such as Crunchbass. You can look into publicly available information about previous startups they were involved in, such as funding rounds, exit outcomes, or growth metrics​. Diversity and Inclusion Diversity and inclusion significantly reduce team risk by bringing various perspectives, experiences, and skills to the table. A diverse and inclusive startup team is better equipped to innovate, solve complex problems, and understand the needs of a broader customer base. This diversity can lead to more creative solutions and a greater ability to adapt to changes, ultimately contributing to the long-term success of the startup. The Role of Diversity and Inclusion in Reducing Team Risk: Enhancing Problem-Solving Capabilities:Diverse teams bring together individuals with different backgrounds, experiences, and ways of thinking. This variety enhances problem-solving capabilities as team members approach challenges from multiple angles, leading to more innovative and effective solutions. When a team consists of members with varied perspectives, they are less likely to overlook potential issues and more likely to identify creative opportunities that a more homogenous team might miss​. Mitigating Groupthink:Inclusion fosters an environment where all team members feel valued and encouraged to share their ideas. This reduces the risk of groupthink, where a lack of diverse opinions can lead to poor decision-making. Inclusive teams are more likely to engage in healthy debates, consider alternative viewpoints, and make better-informed decisions, reducing the likelihood of costly mistakes​. Broadening Market Understanding:A diverse team is more likely to reflect the diversity of their market. This understanding can lead to developing products and services that better meet the needs of different customer segments, enhancing the startup's ability to compete in a global market. For example, a team with diverse cultural backgrounds can more effectively navigate international markets, avoiding missteps and better tailoring offerings to local preferences. Benefits of Having a Diverse and Inclusive Startup Team: Increased Innovation:Diverse teams are more innovative because they combine different ideas, perspectives, and experiences. Studies have shown that companies with diverse leadership are more likely to develop new products and enter new markets. This innovation is crucial for startups that must differentiate themselves and continuously evolve in competitive markets. Improved Employee Satisfaction and Retention:Inclusive workplaces tend to have higher employee satisfaction and retention rates. Employees who feel included and respected are more engaged, motivated, and committed to their work. This positive work environment can reduce turnover, saving the startup time and resources for hiring and training new staff​. Better Decision-Making:A diverse team is better equipped to make sound decisions. Research shows that diverse groups consider more information and process it more carefully than non-diverse groups, leading to better outcomes. This improved decision-making is particularly valuable in the fast-paced startup environment, where the ability to make quick, informed decisions can be a competitive advantage​. Communication and Collaboration Effective communication and collaboration are essential components of a successful startup team. These factors significantly reduce team risk by ensuring that all members are aligned, informed, and working together towards common goals. Poor communication can lead to misunderstandings, missed opportunities, and conflicts, while strong collaboration fosters innovation, efficiency, and a supportive work environment. How Effective Communication and Collaboration Reduce Team Risk: Minimizing Misunderstandings:Clear communication ensures that all team members agree regarding objectives, responsibilities, and expectations. This reduces the risk of misunderstandings leading to errors, delays, or project failures. When communication is effective, team members can quickly address issues as they arise, preventing them from escalating into bigger problems​. Enhancing Problem-Solving:Collaborative teams are more effective at problem-solving because they can leverage the collective knowledge and skills of the group. By working together, team members can identify potential risks early and develop more robust solutions. This collaborative approach reduces risk and leads to more innovative and well-rounded outcomes​. Building Trust and Cohesion:Open and transparent communication helps build trust among team members, which is crucial for effective collaboration. When team members trust each other, they are more likely to share ideas, take risks, and support one another, leading to a more cohesive and resilient team. This trust is particularly important in a startup environment, where teams often face high levels of uncertainty and need to rely on each other to navigate challenges​. Methods for Evaluating Communication and Collaboration: Conduct Team Surveys:Regularly surveying team members about their communication experiences can provide insights into how effectively information is shared and understood within the team. These surveys can highlight areas where communication may be breaking down and identify opportunities for improvement​. Observe Team Interactions:Observing how team members interact during meetings, brainstorming sessions, and everyday work can reveal much about their communication and collaboration dynamics. Look for signs of active listening, respectful dialogue, and the willingness to consider different viewpoints. Positive interactions typically indicate strong communication practices. Use Collaboration Tools Analytics:Many collaboration tools, such as Slack, Asana, or Trello, offer analytics to help evaluate team communication. Metrics such as the frequency of updates, task completion rates, and responsiveness can quantitatively measure how well the team collaborates and communicates​. Examples of Strong Communication Practices Leading to Successful Outcomes: Case of Pixar Animation Studios:Pixar is known for its strong communication and collaboration culture. The company practices "Braintrust" meetings, where teams provide candid feedback on ongoing projects without fear of retribution. This open communication has been credited with helping Pixar produce a string of successful and critically acclaimed films, allowing teams to address problems early and collaboratively find solutions​. Example of IDEO:IDEO, a global design company, encourages a culture of collaboration through "collaborative design thinking." Teams work closely across disciplines, sharing ideas freely and iterating on concepts together. This approach has led to innovative solutions and successful product designs, illustrating the power of effective collaboration​. Build Stronger Startup Success with Visible Evaluating startup team risk is essential for investors aiming to maximize their chances of backing successful ventures. Key areas such as experience, diversity, communication, and leadership are critical in determining a team’s potential. However, managing and tracking these elements can be challenging. Visible provides investors with powerful tools to monitor team dynamics, track key performance indicators, and stay informed about the startups they’ve invested in. By using Visible, investors can gain deeper insights, make more informed decisions, and ultimately build stronger, more resilient portfolios. Start using Visible today to enhance your investment strategy and ensure your startups are on the path to success. Related resource: Business Venture vs Startup: Key Similarities and Differences

Investing can be a solitary journey, but it doesn't have to be. Joining an online community of like-minded investors can provide valuable insights, opportunities, and support needed to enhance your investment strategies. In this article, we’ll dive into seven of the best online communities tailored for investors, ranging from exclusive professional networks to vibrant platforms for retail investors. Whether you’re seeking high-quality research, early-stage startup opportunities, or real-time market data, these communities offer something for everyone. 1. SumZero SumZero is an exclusive online community tailored for professional investors, particularly those working in hedge funds, mutual funds, and private equity. Since its launch in 2008, SumZero has been dedicated to fostering a collaborative environment where buy-side analysts and portfolio managers can share detailed research, investment insights, and ideas. The platform serves as a vital resource for serious investors who depend on high-quality, peer-reviewed research to make informed decisions. Members of SumZero include professionals from some of the most prestigious investment firms worldwide. The community is composed of hedge fund managers, mutual fund analysts, and other buy-side professionals who seek to exchange ideas and collaborate on sophisticated investment strategies. Key benefits of SumZero include an extensive research database filled with in-depth investment theses, a buy-side analyst performance ranking system, and exclusive job opportunities within the finance sector. Additionally, the platform offers a compensation database, allowing members to anonymously compare their earnings with their peers, adding extra value to the community. Who’s SumZero Best For? SumZero is perfect for professional investors prioritizing high-quality, peer-reviewed research and insights to guide their investment strategies. It is particularly valuable for those in hedge funds, mutual funds, and private equity, where deep analysis and collaboration are essential. Moreover, SumZero provides unparalleled networking opportunities, connecting members with top-tier investment professionals worldwide. 2. FundersClub FundersClub is a pioneering online platform focused on venture capital and startup investments. Established in 2012, it was one of the first online venture capital firms, providing accredited investors with direct access to high-potential, early-stage startups. The platform's primary goal is to democratize venture capital by enabling a broader range of investors to participate in startup funding opportunities traditionally reserved for a select few. FundersClub’s portfolio includes over 370 startups, with a collective portfolio valuation exceeding $30 billion. The highly selective platform offers investment opportunities in only the top 1-2% of startups it reviews. Investors on FundersClub can easily diversify their portfolios by investing in various startups across different industries, with relatively low minimum investment requirements. Key features of FundersClub include a comprehensive vetting process for startups, ensuring that only the most promising opportunities are presented to investors. Additionally, the platform offers a range of educational resources to help investors understand the nuances of venture capital and startup investing. Members also benefit from networking opportunities within the FundersClub community, composed of successful entrepreneurs, business leaders, and seasoned investors​. Who’s it Best For? FundersClub is ideal for investors who are particularly interested in exploring startup opportunities. It provides direct access to a curated selection of vetted startups, allowing investors to make informed decisions confidently. The platform is especially beneficial for diversifying their investment portfolios with high-growth potential ventures. In addition to investment opportunities, members gain access to valuable educational resources and networking events that enhance their understanding of the startup ecosystem and connect them with like-minded investors​. 3. Dumb Money Dumb Money is a dynamic online community focused on collaborative investment strategies, making it particularly appealing to retail investors. Founded by three investors who turned a small initial sum into millions, Dumb Money has grown into a well-known brand with a significant presence on platforms like Reddit and Discord. The community’s primary goal is to democratize investing by crowdsourcing ideas and sharing real-time insights into the stock market. The content on Dumb Money is diverse and engaging, ranging from live investment discussions and stock market analysis to podcasts and YouTube videos. The platform encourages open discussions where members can share their investment ideas, debate strategies, and gain insights from the experiences of others. The community's discussions often revolve around trending stocks, market news, and emerging investment opportunities across various sectors. Key benefits of Dumb Money include weekly live sessions where the founders reveal their latest investments and thought processes, a podcast that offers regular updates and insights, and a comprehensive Discord server where members can interact, share ideas, and access various research tools. The community is highly collaborative, with members actively participating in discussions and contributing to a shared pool of investment knowledge​. Who’s it Best For? Dumb Money is best suited for retail investors who enjoy a collaborative and interactive approach to investing. It's particularly beneficial for those interested in crowdsourced investment ideas and real-time discussions about market trends. The platform's focus on community-driven insights allows members to learn from each other and participate in a collective investment strategy. With interactive content like live sessions and a bustling Discord server, Dumb Money offers a rich environment for those looking to stay engaged with the market and connect with like-minded investors. 4. Intch Intch is a cutting-edge platform designed to connect investors with startups and other investors, fostering meaningful networking and collaboration. The platform leverages AI-powered matchmaking tools to pair users with relevant investment opportunities, business partners, and peers, creating a dynamic environment where investors can find and engage with startups that align with their interests and goals. Intch’s primary focus is on creating valuable connections in the startup ecosystem. Whether you’re an investor looking for your next big opportunity or a startup founder seeking funding and partnerships, Intch provides the tools and resources to facilitate these connections. The platform stands out for its personalized approach, using advanced algorithms to match users based on their preferences and needs. Key features of Intch include its matchmaking tools, which help investors discover startups and other investors who share similar goals and interests. Additionally, Intch offers access to exclusive events, resources, and a collaborative environment that encourages exchanging ideas and knowledge. The platform is designed to streamline the networking process, making it easier for users to build meaningful connections and explore new investment opportunities. Who’s it Best For? Intch is ideal for investors looking to expand their network and discover new investment opportunities, particularly within the startup ecosystem. It’s especially beneficial for those who value targeted networking, as the platform’s AI-driven matchmaking tools make connecting with like-minded startups and peers easy. Additionally, Intch offers a collaborative environment with access to exclusive events and resources, making it a valuable tool for anyone looking to engage more deeply with the startup community. 5. Corner of Berkshire & Fairfax Corner of Berkshire & Fairfax is a prominent online forum dedicated to value investing. Its focus is on the investment philosophies of Warren Buffett and Prem Watsa. This platform serves as a gathering place for professional and serious individual investors interested in deep, thoughtful discussions about long-term investment strategies and value-oriented investment ideas. The forum offers a wealth of content and resources, including discussions on specific companies, market trends, and investment strategies. Members frequently share detailed analyses, book recommendations, and insights into investment philosophies that align with value investing principles. The platform also includes dedicated sections for discussions on Berkshire Hathaway, Fairfax Financial, and other value-oriented companies, making it a treasure trove for those interested in these particular firms. Key features of Corner of Berkshire & Fairfax include its large and active community, where members contribute to discussions on a wide array of investment topics. The forum’s structure allows for organized conversations, with separate boards for general discussions, investment ideas, books, and personal finance. The platform also supports networking and communication among its members, offering an environment where investors can share ideas and insights in a collegial atmosphere​. Who’s it Best For? Corner of Berkshire & Fairfax is best suited for professional investors and serious individual investors who are looking for a comprehensive online forum dedicated to value investing. The platform particularly benefits those who appreciate in-depth discussions and insights from other experienced investors. Members gain access to a wealth of collective knowledge and the opportunity to network and communicate with other professionals in the investment community. 6. Stocktwits Stocktwits is a popular social media platform designed specifically for investors, offering a unique combination of real-time market data and social investing. Launched in 2008, Stocktwits has become a go-to platform for investors who want to stay updated on market trends, discuss investment strategies, and follow trending stocks in real-time. The platform operates similarly to Twitter, with users posting short messages, known as "tweets," about their investment ideas, market observations, and stock picks. Stocktwits focuses heavily on providing real-time data and fostering a community-driven approach to investing. Investors can follow specific stocks, track trending tickers, and engage in conversations with other users who share similar interests. The platform’s social nature makes it a vibrant space for exchanging ideas, getting a pulse on market sentiment, and staying informed about the latest market movements. Key features of Stocktwits include interactive charts that allow users to visualize stock performance, sentiment analysis tools that gauge the mood of the market based on user posts, and trending tickers that highlight which stocks are getting the most attention. The platform also offers streams where users can follow the latest discussions and insights on various stocks and sectors, making it a valuable resource for real-time market engagement​. Who’s it Best For? Stocktwits is ideal for investors who thrive on real-time market discussions and data. It’s particularly beneficial for those who want to follow trending stocks, connect with other investors, and stay engaged with the market throughout the trading day. The platform’s interactive charts, sentiment analysis, and community-driven insights offer a dynamic and interactive way to participate in the market, making it a perfect fit for active investors and traders​. 7. LiquidityFinder LiquidityFinder is a specialized platform designed to connect finance and fintech professionals, traders, businesses, and organizations with liquidity providers across global financial markets. Founded by industry veteran Sam Low in 2019, LiquidityFinder has grown into a comprehensive social network that caters specifically to the needs of financial market professionals. The platform's primary purpose is to simplify the process of sourcing reliable and competitive liquidity solutions, ranging from traditional FX and CFD liquidity to cutting-edge digital assets and crypto liquidity. In December 2022, LiquidityFinder evolved into a community-driven platform, emphasizing networking and collaboration among its members. It now functions not just as a marketplace for liquidity solutions but also as a vibrant community where financial professionals can engage, share knowledge, and stay informed about industry developments. The platform offers advanced tools like the Match Matrix and multi-provider request forms, which help users efficiently find and connect with the right liquidity providers for their needs. Key features of LiquidityFinder include a robust directory of liquidity providers, market news and analysis, industry insights, and a specialized jobs board focused on finance and fintech roles. Members can create profiles, participate in forums, and use in-site messaging to connect with potential partners, fostering a collaborative environment that supports business growth and professional networking​. Who’s it Best For? LiquidityFinder is ideal for investors, traders, and financial market professionals seeking comprehensive liquidity solutions and networking opportunities. The platform is particularly beneficial for those who need detailed information about liquidity providers and want to engage with a community of industry peers. With tools like the Match Matrix for finding the right providers and a specialized jobs board for career opportunities, LiquidityFinder offers a unique and focused environment that helps users grow their businesses and professional networks​. Connect with the Top Online Investor Communities Today Engaging with the right online investor communities can significantly boost your investment knowledge, provide valuable networking opportunities, and offer access to exclusive resources. To further enhance your investment strategy, consider using Visible- designed to help you manage your portfolio, track performance, and connect with other investors seamlessly. Ready to elevate your investment journey? Sign up with Visible today and take the next step in optimizing your investment portfolio. Related resources: 9 Tips for Effective Investor Networking How To Find Private Investors For Startups How to Find Investors

A question we often hear from investors is “What response rate should I expect from my portfolio companies when I’m using Visible?” Investors are asking this question for a good reason; higher response rates mean more accurate metrics, less time spent chasing companies, and more meaningful portfolio insights to inform decision-making. The answer to this question is as nuanced as the founder <> investor relationship itself. While Visible increases the efficiency of the data collection process and provides investors with a source of truth for portfolio information, Visible will not dramatically (or magically) increase structured data response rates overnight. Response rates from companies are most directly affected by variables that are within, and sometimes outside of, investors' control. Factors Outside of an Investor's Control That Affect Response Rates The Stage at Which You Invest Our data shows that the stage at which you invest can affect response rates. Early-stage companies, which we defined as pre-seed and seed-stage companies, are most likely to respond to structured requests from their investors. There are many plausible explanations for this finding. Startups at this stage have fewer investors on their cap table and therefore are not reporting to an exhaustive list of stakeholders. They’re also still establishing themselves in the fundraising space and likely understand that positive relationships with current investors can lead to follow-on funding and investor introductions. Visible still functions as a source of truth for investors who focus primarily on later-stage investments. It is more common in this context for companies use the Request feature to share a minimal amount of structured metrics (2-3) and upload files that contain their latest financial and qualitative updates. These files are automatically saved to a company’s profile, and investors can enter these metrics directly into the relevant company's metrics table. Investors who receive company email updates can forward these emails to Visible AI Inbox to automatically map and save them to a company’s profile. Learn more about mapping email updates to companies' profiles on Visible with AI Inbox below: Whether You are a Lead Investor or Not Lead investors typically have a meaningful ownership stake in a company and are likely to have a board seat and information rights. These factors contribute to higher response rates from portfolio companies as opposed to investors with small ownership stakes and no information rights for a company. Number of Companies in Your Portfolio The number of companies in your portfolio may also affect your response rates. Our data shows that funds with a portfolio size between 50-100 companies results in the best response rates. This is likely because you have reached a stage in your firm's development where you have meaningful brand recognition which elicits compliance from your portfolio companies. We see the response rates for portfolio sizes of over 100 slightly decrease. A possible explanation for this is as more time passes between your initial investment in a company, the motivation for a company to report to your firm may decline if strong relationships are not maintained. Additionally, firms with many portfolio companies may indicate a high volume/low ownership approach to investing. The good news is there are numerous factors within investors' control that can be enhanced with Visible to help increase response rates from companies. How to Increase Response Rates While some factors that impact response rates are outside of your control, there are a few best practices that can lead to increased response rates. Check out a few examples below: Set Expectations With Founders Before investing in a company, you can start to set report expectations. Including reporting expectations a side letter to founders is a great first step. We also recommend re-iterating reporting expectations when onboarding new portfolio companies. Outline the specific metrics and reporting deadlines during onboarding. Check out our guide to onboarding new portfolio companies for inspiration. Establish Trust and Rapport With Companies Don’t let the reporting process be the only time you communicate with your portfolio companies. Offer regular check-ins and support for portfolio companies to build trust and encourage regular responses. Ensure You Have the Right Point of Contact Confirm you have the correct point of contact during the onboarding process and on an ongoing basis. As a company matures, the point of contact can change. With Visible Requests, you can send requests to multiple points of contact. Set Appropriate Reminder Emails Customize reminder messages before and after a Visible Request is due to encourage a higher response rate. Requests with four or more scheduled reminder emails have the best response rates. We also recommend giving a company one week's notice before sending out a request for the first time. Only Ask for Top-of-Mind Metrics Reduce the reporting burden on your companies and aim to only ask for 5-10 essential metrics. Assign custom metrics to different companies to ensure Requests are as tailored and concise as possible. Ask for Data Quarterly 70% of investors send Requests quarterly and this frequency is shown to result in the best response rates. You can ask for monthly granularity in quarterly and semi-annual requests. Verify Your Firm's Domain on Visible Verifying your domain means data Requests come directly from your email domain making it easier for your companies to identify and trust. Let Companies Report in Their Currency Allowing companies to report in their own reporting currency reduces the reporting burden on founders. Visible converts portfolio data back into your fund’s currency for streamlined reporting and analysis. Include Clear Metric Definitions Clear metric definitions reduce the back-and-forth between you and your companies and ensure data accuracy. Visible lets investors customize metric titles and definitions. How to Get Data Into Visible Visible provides investors and their portfolio companies with various ways of aggregating data into one source of truth. Visible Requests Requests are the primary way investors collect structured data, qualitative updates, and files from portfolio companies. Requests sent through Visible do not require companies to create an account with Visible and take companies 3-5 minutes to complete. Visible Requests also automate the process of sending reminder emails to companies who haven’t responded to a data request. These automatic reminder emails save investors approximately 63 hours per year. Data Import Investors can choose to easily enter and update data directly on the Visible platform. The modern UI allows for easy navigation and the audit log provides users with a record of who made changes to the platform and when. Google Sheet Integration Investors can choose to integrate with a Google sheet to keep their companies’ metric data up to date in Visible. Learn more about Visible’s Google Sheets integration. Visible AI Inbox Automatically transform email updates that founders send you into structured data that can be charted, analyzed, and shared in Visible with AI Inbox. Learn more here. Centralize Your Data With Visible Ready to build one place for your firm's data? Learn more about leveraging Visible to centralize key performance data for your firm by scheduling a call with our team.

Venture capital is entering a transformative era, powered by AI tools that reshape the very foundations of investing. From automating deal sourcing to enhancing due diligence and portfolio management, AI is not just an add-on but a game-changer for startups and investors alike. In this article, we’ll cover how AI technologies revolutionize venture capital, spotlighting seven pivotal tools that set new benchmarks for efficiency, decision-making, and strategic foresight. Benefits of Using AI Tools in Venture Capital In the competitive arena of venture capital, leveraging the latest technologies provides a distinct edge. AI tools represent a significant leap forward, offering benefits that enhance the entire investment lifecycle. These technologies streamline operations and enable deeper insights and more robust portfolio oversight. Here's how AI is making a transformative impact: Increased Efficiency: AI automates the labor-intensive process of deal sourcing, filtering through thousands of startups to highlight the most promising ones. This automation extends to other areas such as market research and data analysis, significantly reducing the time venture capitalists spend on these tasks and allowing them to focus on strategic decision-making​​​​. Enhanced Decision-making: AI's ability to process and analyze vast datasets gives venture capitalists unprecedented insights. From predictive analytics on market trends to in-depth evaluations of startup viability, AI tools equip investors with the information needed to make informed decisions with greater confidence​​​​. Performance Monitoring: Real-time data analysis is another critical benefit of AI in venture capital. Tools specifically designed for monitoring portfolio companies can track performance indicators, alerting investors to both opportunities and potential risks. This capability ensures that venture capitalists can respond quickly to changes in their investments' status, optimizing for success​​​​. Related resource: How AI Can Support Startups & Investors + VCs Investing in AI Uses Cases for AI in Venture Capital Venture capitalists leverage AI in several key areas to enhance their operations, reduce manual workload, and make more data-driven decisions. The following use cases illustrate the versatility and power of AI in VC, highlighting how AI tools are not just optional extras but essential components of a modern venture capital firm's toolkit. Deal Flow Automation One of the most significant advantages of AI in venture capital is the automation of deal flow processes. AI tools can sift through vast amounts of data to identify potential investment opportunities, filtering out noise and focusing on startups that meet specific criteria. This automation significantly increases efficiency, allowing venture capitalists to allocate more time to engaging with high-potential deals rather than searching for them. Example: Caena utilizes AI to automate the process of finding and assessing potential investment opportunities, making it easier for venture capitalists to discover startups that align with their investment thesis​​. Startup Evaluation and Due Diligence AI plays a crucial role in the evaluation and due diligence phase, analyzing extensive datasets to assess a startup's financial health, market potential, and operational viability. This capability enables venture capitalists to conduct a more thorough and accurate assessment of potential investments, reducing the risk associated with early-stage startups. Example: Tracxn leverages AI to provide detailed analyses of startups, offering insights into their financial status, market positioning, and growth potential, thereby streamlining the due diligence process for investors​​. Portfolio Management and Monitoring Effective portfolio management and monitoring are vital for venture capitalists, and AI enhances these processes by offering real-time insights into performance metrics and potential risks. This enables investors to make informed decisions swiftly, capitalizing on opportunities and mitigating risks. Example: Visible AI Inbox allows investors to uncover insights from unstructured data in seconds. Forward the updates and files founders share with you directly to Visible. AI Inbox will automatically parse, structure, and uncover new insights combined with the data already in Visible. Deal Negotiation and Term Sheet Generation AI is also transforming the deal negotiation and term sheet generation process. By leveraging data-driven insights, venture capitalists can optimize investment terms and outcomes, ensuring that both parties reach agreeable terms efficiently. Example: Using ChatGPT to generate term sheets showcases AI's ability to streamline complex legal negotiations. By analyzing vast amounts of data, AI can suggest terms that are fair and in line with market standards, simplifying the negotiation process​​. Related resource: The Role of AI in Startups and Venture Capital + Top VCs Investing in AI 8 AI Tools Being Used in Venture Capital Venture capital is a fast-evolving field, and AI technologies are playing an increasingly significant role in reshaping its landscape. From enhancing deal sourcing and due diligence to improving investor relations and portfolio management, AI tools provide venture capitalists with powerful ways to enhance efficiency and accuracy. In this section, we will explore seven cutting-edge AI tools making a mark in the venture capital industry, detailing what each tool does and how it can be leveraged to gain a competitive edge in the market. Related resource: 13 Generative AI Startups to Look out for Visible AI Inbox Visible AI Inbox combines with our other data sources to create a source of truth for all of your portfolio data and information. Forward the updates and files founders share with you directly to Visible. AI Inbox will automatically parse, structure, and uncover new insights combined with the data already in Visible. Learn more by scheduling a call with our team here. Visible AI Updates Visible AI Updates allows founders to send best-in-class investor updates in minutes. Your founders can leverage AI Updates to automatically turn their Visible Request data and responses into shareable updates embedded with charts, images, files, and more. Learn more by scheduling a call with our team here. ChatGPT ChatGPT, developed by OpenAI, is an advanced language model designed to understand and generate human-like text based on the input it receives. In the venture capital sphere, ChatGPT can be utilized for various purposes including automating responses to common investor inquiries, generating detailed reports, and analyzing market trends. For startups seeking funding, ChatGPT can be instrumental in crafting compelling pitches, managing communications with potential investors, and even updating stakeholders about the company’s progress through tools like the Visible platform- find out how to use AI for your investor updates here. This makes it a versatile tool for enhancing interaction and maintaining transparent investor relations. Related resource: Using AI Prompts to Write Your Next Investor Update Caena Caena is a strategic AI tool designed to optimize decision-making in venture capital. It assists VCs in predicting startup success rates by analyzing vast amounts of data on startup performance and market trends. For startups, Caena can prove invaluable by providing insights on their positioning within the market, helping them to fine-tune their strategies for attracting investor attention and funding. By leveraging Caena, startups can better understand the competitive landscape and improve their pitches, increasing their chances of securing venture capital. Merlin Merlin offers robust analytics solutions that help venture capitalists streamline the process of deal sourcing and due diligence. By using Merlin, VCs can access detailed insights about potential investment opportunities, market trends, and the competitive environment. For startups, Merlin serves as a tool to stand out in a crowded market by providing detailed analytics on their business model and market potential, which can be crucial in discussions with potential investors. By highlighting their strengths and market opportunities through Merlin’s analytics, startups can attract venture capital funding more effectively. Tracxn Tracxn is a specialized AI tool that provides comprehensive data intelligence for venture capital firms. It helps in identifying the best startups across various sectors by analyzing market data and trends. Venture capitalists use Tracxn to streamline their deal-sourcing processes and to stay updated on the most promising investment opportunities worldwide. Its extensive database and sophisticated analytics enable VCs to make informed decisions quickly, saving time and resources in the competitive venture capital market. TechScout TechScout is designed to assist venture capitalists in discovering and evaluating emerging technologies and startups. It provides detailed insights and analyses on the latest tech innovations, helping VCs spot high-potential investments early. Venture capitalists rely on TechScout to stay ahead of trends and to efficiently assess the technological viability and potential market impact of new startups, thus enabling more strategic investment decisions. Quid Quid is a platform specializing in visualizing complex data, enabling venture capitalists to see patterns and connections that might otherwise go unnoticed. It analyzes data from various sources to provide VCs with comprehensive market landscape analyses and competitive insights. This capability makes Quid an invaluable tool for venture capital firms aiming to understand broader market dynamics and to identify emerging sectors and technologies that promise high returns. Enhance Your Fund Operations With Visible As the venture capital landscape transforms with the integration of AI tools, these technologies are proving to be indispensable in enhancing portfolio management, deal sourcing, due diligence, and overall investment management. AI not only automates and speeds up the process but also provides deeper insights and more accurate forecasts, allowing venture capitalists to make more informed decisions and manage investments more effectively. Learn more about Visible AI by scheduling a call with our team here.

Venture capital is a dynamic field, offering unique opportunities to influence the future of technology, innovation, and entrepreneurship. If you're fascinated by startups, growth, and investment, diving into how to get into venture capital can open up a world of possibilities. This guide is crafted to demystify the venture capital industry and outline actionable steps for those looking to start their career in this interesting sector. What is Venture Capital? Venture capital (VC) is a subset of private equity, focused on investing in startups and early-stage companies with high growth potential in exchange for equity. Venture capital firms or funds assess the risk and potential of these companies, aiming for a return through equity gains as the companies grow. These investments typically come after an initial seed funding round and aim for a significant return through an eventual exit event, such as an IPO or acquisition​​. Venture capital is pivotal in funding innovative startups that might not have access to traditional financing methods due to their novel business models or technology. The VC industry is known for its involvement in high-tech sectors like IT, biotechnology, and clean technology​​. Venture capitalists provide capital, strategic advice, networking opportunities, and operational support to help these companies scale​​. What VC firms are and what they do: Venture Capital Firms: These are specialized financial entities that pool money from different investors to invest in startups and emerging companies. The end goal is to earn a return on their investment, typically through an exit event like an IPO or a sale of the company. Function: VC firms actively manage their investments by offering strategic guidance, networking opportunities, and sometimes even taking a seat on the company's board. They seek to boost the company's growth and increase its value over time, aiming for a profitable exit strategy to return capital to their investors. Roles and responsibilities of a venture capitalist include: Identifying Investment Opportunities: Venture capitalists scout for promising startups with high growth potential, innovative business models, or technology. Due Diligence and Analysis: They thoroughly evaluate potential investments, assessing the company's business model, market potential, competitive landscape, and management team. Funding Startups: After a careful assessment, venture capitalists fund chosen startups in exchange for equity, typically aiming for a minority stake. Providing Strategic Advice: Beyond financial support, venture capitalists offer valuable guidance on business strategy, growth, and operational improvements. Networking: They leverage their extensive networks to support portfolio companies with hiring, partnerships, and customer acquisition. Venture capital is not just about money; it's about building a partnership between investors and entrepreneurs to foster innovation and growth. As such, venture capitalists are integral to developing and scaling startups, helping them evolve from fledgling companies into significant players in their respective industries​​​​​​. This dynamic field offers a unique blend of financial acumen, strategic thinking, and a deep understanding of innovation, making it a fascinating career path for those passionate about shaping the future of business and technology. Understanding the Venture Capital Industry and Job Market To truly understand the venture capital industry and its job market, it's crucial to look beyond just the financial investments and see the entire ecosystem that supports and drives innovation. For those aspiring to work in VC, comprehending this ecosystem and its current dynamics is not just beneficial—it's essential. This knowledge will equip you with the insights needed to navigate the competitive landscape of VC careers, whether you aim to become a venture capitalist, an analyst, or play another pivotal role within this field. Overview of the Venture Capital Ecosystem At its core, the venture capital ecosystem is made up of venture capital firms and the professionals working within them. Positions range from Analyst, Associate, and Principal, to Partner roles such as Managing Partner and General Partner. Other significant roles include Venture Partners, Investor Relations Managers, Entrepreneurs-in-Residence, Marketing & Social Media personnel, Interns, and VC Scouts. Each role carries distinct responsibilities, from conducting research and due diligence (Analysts, Associates) to leading the firm's strategic direction (Managing Partners) and making key investment decisions (Partners)​​. These VC firms source capital from limited partners, such as pension funds, endowments, and wealthy individuals, to invest in high-potential startups and early-stage companies. The ecosystem also includes the entrepreneurs and startups seeking funding, alongside a network of service providers such as lawyers, accountants, and consultants who support venture investments' transactional and operational aspects. For those looking to work in VC, understanding the roles within these firms and the skills and experiences valued in the industry is key. Networking, financial analysis, market research, and strategic thinking are just some of the core competencies needed. Additionally, being familiar with the legal and regulatory environment of startup financing can set candidates apart. Current Trends and Challenges in the VC Industry Several trends and challenges are shaping the VC job market today: Diversification of Investment Areas: VC firms are increasingly investing in a wider range of industries. This broadening scope requires professionals with specialized knowledge or the ability to learn and adapt to new sectors quickly. The Rise of Remote Work: The global shift towards remote work is changing how VC firms operate, including how they interact with their portfolio companies and conduct due diligence. This trend is creating opportunities for professionals with strong digital communication skills and the ability to work effectively in a remote environment. Increased Competition for Positions: As the allure of venture capital grows, so does the competition for roles within VC firms. Aspiring professionals need to build a strong personal brand, demonstrate their value through past experiences, and cultivate a robust network within the industry. Ethical and Sustainable Investing: There's a growing emphasis on ethical investing, with more VC firms considering the environmental and social impact of their investments. Knowledge of sustainable business practices and impact investment can be a significant advantage. Navigating the venture capital job market requires a keen understanding of both the roles available within the industry and the broader trends shaping its future. By staying informed and adaptable, aspiring VC professionals can position themselves for success in this exciting and dynamic field. Related resource: VC Fund Performance Metrics 101 How Do You Get Into Venture Capital? Successfully entering the venture capital industry typically involves a mix of education, experience, skillset, and networking. While there is no one-size-fits-all approach, understanding these components can significantly enhance your prospects in this competitive field. Education and Experience The educational background of those working in venture capital often includes undergraduate degrees in business, finance, economics, or engineering. A Master's in Business Administration (MBA) is also highly regarded, with many VC professionals holding degrees from top-tier business schools. This educational foundation provides the necessary theoretical knowledge and analytical skills. Experience is equally, if not more, important. Many successful venture capitalists have backgrounds in entrepreneurship, investment banking, management consulting, or have been part of a start-up. This experience is invaluable as it provides a deep understanding of the challenges and opportunities within start-ups and the broader business landscape. It also helps develop the ability to evaluate the potential of early-stage companies. Internships in VC firms or related fields can be a stepping stone, offering firsthand experience and the opportunity to make initial industry contacts. Participation in relevant extracurricular activities, such as business plan competitions or investment clubs, can also be beneficial. Skillset and Personal Qualities Venture capital is not just about numbers; it requires a unique set of skills and personal qualities. Analytical and financial skills are fundamental, as VCs need to assess start-ups' viability and potential return on investment. Strategic thinking is crucial for understanding market trends, competitive landscapes, and a start-up's potential for scale and growth. Personal qualities matter greatly. Resilience and patience are essential, as success in venture capital often takes time, and not all investments will pay off. Strong interpersonal and communication skills are needed to build relationships with entrepreneurs and co-investors and to negotiate and close deals effectively. An entrepreneurial mindset is also key, with the ability to take calculated risks and make decisions in the face of uncertainty. Building a Network and Finding Mentorship Networking is critical in the venture capital world. Building a broad and deep network with entrepreneurs, investors, and industry professionals can open opportunities to discover promising start-ups, secure investment deals, and find potential co-investors or partners. Mentorship is another crucial aspect. Finding a mentor within the VC field can provide guidance, advice, and access to a wider network. Mentors can help navigate the industry's complexities, offer insights on investment strategies, and support career development. Engaging with the VC community through conferences, seminars, and online platforms can facilitate networking and finding mentorship opportunities. Additionally, contributing to the VC ecosystem through blogging, speaking at events, or participating in forums can raise your profile and help establish valuable connections. Entering the venture capital industry is challenging but achievable with the right mix of education, experience, skills, and network. Persistence, continuous learning, and active engagement with the VC community are key to success in this dynamic and rewarding field. Related resource: 6 Helpful Networking Tips for Connecting With Investors Main Entry Points in Venture Capital Venture capital entry can vary widely, depending on one's background, education, and career stage. Understanding the main entry points can help aspirants tailor their journey toward this exciting and impactful field. Below, we explore three primary entry points into venture capital: pre-MBA, post-MBA, and Senior level, each offering distinct pathways and opportunities for prospective venture capitalists. Pre-MBA The pre-MBA entry point in venture capital is primarily for those in the early stages of their careers, often immediately after undergraduate studies or after gaining a few years of work experience. This level typically involves entering VC firms in analyst or associate roles. The primary function at this stage involves supporting the firm's investment process, which includes market research, deal screening, due diligence, and financial modeling. Candidates at this entry point usually hold a bachelor's degree, with a preference for fields such as finance, business, economics, or engineering. However, what stands out more than the degree itself is relevant work experience, especially in startups, banking, consulting, or tech companies, and a demonstrated passion for venture capital and entrepreneurship. The Pre-MBA route is an excellent opportunity for individuals to immerse themselves in the VC ecosystem, build a network, and gain a solid understanding of what it takes to evaluate and support startups. Post-MBA The Post-MBA entry point is tailored for individuals who have completed their Master of Business Administration (MBA) degree and are looking to leverage this advanced education to enter or advance within the venture capital field. Post-MBA roles in VC are typically at the associate or senior associate level, though some may enter as a partner, depending on their experience and network. An MBA from a top-tier business school can be particularly advantageous, as VC firms often value the advanced business acumen, strategic thinking, and extensive networking opportunities these programs provide. Furthermore, an MBA with a concentration in entrepreneurship, finance, or management can be especially relevant. Candidates at this stage are expected to have a more significant role in investment decisions, portfolio management, and even in providing strategic advice to startups. The Post-MBA path is well-suited for those looking to pivot into venture capital with a solid foundation in business principles and a strong professional network. Senior Level Senior-level entry points in venture capital are typically reserved for individuals with extensive experience in related fields such as entrepreneurship, executive leadership, investment banking, or consulting. Entering VC at a senior level often means stepping into roles such as partner or managing director. At this stage, education is less about the degree itself and more about the depth and breadth of professional experience and the individual's track record in building, advising, and investing in successful companies. Senior entrants are expected to bring a robust network, deep industry insights, and a keen eye for identifying and nurturing high-potential startups. They play a crucial role in shaping the investment strategy of the firm, leading fundraising efforts, and guiding the firm's overall direction. The senior-level entry is ideal for accomplished professionals looking to leverage their expertise to make a significant impact in the venture capital ecosystem. Regardless of the entry point, a career in venture capital demands a blend of analytical acumen, strategic foresight, and interpersonal skills. The journey into VC can be as diverse as the startups it seeks to fund, offering multiple paths for those passionate about driving innovation and entrepreneurship. Prominent Roles at a VC Firm Understanding the roles within a VC firm and the qualifications needed for entry-level positions is the first step toward pursuing a career in this exciting field. Aspiring professionals should focus on building relevant skills, gaining appropriate experiences, and networking extensively to improve their chances of breaking into venture capital. Below, we will cover the prominent roles at a VC firm, highlighting their responsibilities and the considerations for those aiming to enter the field, especially at an entry level. Related resource: How to Hire for Your First VC Platform Role Roles Include: General Partner (GP): The top-tier position in a VC firm, GPs are responsible for investment decisions, fundraising, and overall firm management. They often have a wealth of experience in investing, entrepreneurship, or specific industries. Limited Partner (LP): LPs are investors in the VC fund who provide the capital that GPs invest. While not involved in day-to-day operations, LPs are vested in the fund's performance. Venture Partner: Venture Partners are typically experienced entrepreneurs or executives who work part-time with the VC firm. They assist with deal sourcing, due diligence, and providing strategic value to portfolio companies. Principal: Principals hold a senior position, often just below the GPs, and are involved in sourcing deals, leading due diligence processes, and supporting portfolio companies. They might be on track to become GPs. Associate: Associates analyze investment opportunities, conduct market research, and support the due diligence process. This role is often considered entry-level or just above, serving as a pathway to more senior positions within the firm. Analyst: Analysts are typically entry-level professionals who support Associates and Principals in their duties. Their work includes market research, financial modeling, and preparing investment memoranda. Analyst positions are great for gaining exposure to the VC world and understanding the basics of venture investing. Considerations for Entry-Level/Junior Roles Educational Background: A degree in finance, business, economics, or a related field is commonly preferred. However, degrees in engineering, science, or technology can also be valuable, especially for VC firms focusing on specific sectors. Relevant Experience: Internships or work experience in startups, investment banking, management consulting, or in the industry the VC focuses on can be advantageous. Networking: Building a strong professional network is crucial in the venture capital sector. Attend industry events, and workshops, and connect with professionals on LinkedIn. Skills and Qualities: Analytical skills, understanding of financial modeling, excellent communication skills, and a genuine interest in technology and startups are essential. Being proactive and having a keen eye for evaluating startups' potential is also important. Persistence and Patience: Landing a role in VC can be highly competitive. It often requires persistence, patience, and sometimes, a bit of luck. Keep learning, stay engaged with the industry, and build your professional network. 6 Steps for Breaking Into Venture Capital for Beginners Breaking into venture capital, especially for beginners, can seem daunting due to the industry's emphasis on networking and prior investment or entrepreneurial experience. However, with the right approach and mindset, aspiring VC professionals can pave their way into this dynamic sector. Below are six practical steps to guide beginners through the essential actions and considerations necessary to launch a successful career in venture capital. These steps aim to build a strong foundation, enhance relevant skills, and expand professional networks, all critical components for those looking to make their mark in the world of venture capital. Related resource: A Guide to How Venture Capital Works for Startups and New Investors 1) Know Which Type of Investing You Want to Work In Venture capital encompasses a broad spectrum of investment stages and sectors, each offering unique opportunities and challenges. Understanding these differences is crucial for those aiming to enter the field, as it not only aligns your career path with your interests and expertise but also shapes your networking and learning strategies. Here’s a brief overview of the funding stages and why choosing a specialization can be beneficial: Funding Stages: Pre-seed and Seed Stage: This is the earliest investment phase, where venture capitalists provide capital to help validate and develop the initial idea, product, or market. Working in this stage requires a keen eye for potential and the ability to work with very early-stage companies. Series A and B (Early Stage): After the seed stage, companies seeking Series A and B funding are typically looking to expand their market reach and scale their operations. Investors at this stage focus on companies that have shown some traction and are ready for more significant growth. Series C and Beyond (Growth Stage): At this point, companies are well-established in their markets and seek funding to scale their operations further, develop new products, or expand globally. Investors here need to assess scalability and market dominance potential. Late Stage and Pre-IPO: Investments at this stage are made in companies on the verge of going public or being acquired. Here, The focus is minimizing risk and ensuring a strong return on investment. Why Specialization Matters: Specializing in a specific stage of investment or sector can be a powerful way to differentiate yourself in the competitive VC landscape. It allows you to develop deep expertise, better assess opportunities, and build a valuable network in your chosen niche. Visible has covered several specialized investment areas, highlighting the diversity within venture capital: Cannabis Venture Capital: An emerging sector with unique regulatory and market challenges. Learn more. NFT Investors: Investing in the burgeoning market of non-fungible tokens, which has exploded in popularity and scope. Learn more. Esports Investors: Focusing on the fast-growing industry of competitive gaming, which includes everything from game development to event management. Learn more. Food and Beverage Startups: Targeting innovations in food technology, sustainability, and beverages. Learn more. Community VC Investors: Investing in startups that prioritize social impact and community building. Learn more. 2) Develop the Right Skill Set Securing a position in the competitive field of venture capital requires a specific set of skills that enable individuals to identify promising investment opportunities, support portfolio companies, and generate significant returns for their firm and its investors. These skills are a blend of technical know-how, analytical prowess, and interpersonal capabilities. Here are several key skills necessary for success in venture capital and how aspiring professionals can go about acquiring them: Financial Analysis and Modeling: Importance: The ability to analyze financial statements, forecast future performance, and model various scenarios is crucial for evaluating the potential of investment opportunities. Financial analysis helps in understanding the viability, stability, and profitability of a startup. How to Attain: This skill can be developed through formal education in finance or business, online courses, and practical experience such as internships or roles in financial analysis, investment banking, or management consulting. Market Analysis and Sector Expertise: Importance: Venture capital professionals need to have a deep understanding of the market trends, competitive landscapes, and technological advancements within their chosen sectors. This knowledge enables them to spot emerging opportunities and risks. How to Attain: Stay informed by reading industry reports, attending conferences, and following thought leaders on social media. Consider specializing in a sector where you already have experience or education, and continuously learn to stay ahead of trends. Networking and Relationship Building: Importance: Building and maintaining a robust network of entrepreneurs, investors, and other VC professionals is essential for sourcing deals, conducting due diligence, and supporting portfolio companies. Strong relationships can also facilitate syndicate deals and co-investments. How to Attain: Attend industry events, join relevant online communities, and actively participate in discussions. Offering value through insights, introductions, or resources can help build meaningful connections. Strategic Thinking and Decision Making: Importance: Venture capital involves making high-stakes decisions with incomplete information. The ability to think strategically, weigh the potential risks and rewards, and make informed decisions is critical for success. How to Attain: Practice by analyzing case studies of venture investments, joining a community, and seeking mentorship from experienced professionals in the field. Adaptability and Resilience: Importance: The startup ecosystem is fast-paced and unpredictable. The ability to adapt to changes, learn from failures, and remain resilient is vital for navigating the ups and downs of venture investing. How to Attain: Embrace challenges and setbacks as learning opportunities. Engage in projects or roles that push you out of your comfort zone and require you to adapt quickly. 3) Get Relevant Work Experience To enhance your candidacy for a role in venture capital, consider gaining experience in these areas. Whether through full-time roles, internships, or even side projects, relevant work experience can significantly bolster your understanding of the business landscape and investment process. Additionally, these experiences provide valuable networking opportunities and the ability to develop a track record of success, both of which are crucial for a career in venture capital. Here’s a look at some of these areas and why they are relevant. Investment Banking: Investment bankers have a strong foundation in financial modeling, deal structuring, and market analysis. This background is beneficial for venture capital, where similar skills are used to evaluate and finance high-growth companies. Why It’s Relevant: The rigorous analytical training, experience with high-stakes transactions, and exposure to various industries make former investment bankers well-equipped to navigate the complexities of venture investing. Management Consulting: Consultants are adept at solving complex business problems, conducting market research, and formulating strategic recommendations. These skills apply to venture capital for assessing a startup’s strategy, market potential, and operational capabilities. Why It’s Relevant: The ability to critically analyze a company’s positioning and propose actionable strategies is invaluable in helping portfolio companies scale and succeed. Entrepreneurship: First-hand experience in founding or working at a startup provides insight into the challenges and realities of building a business from the ground up. This perspective is crucial for venture capitalists in identifying resilient and innovative founders and in providing meaningful support to portfolio companies. Why It’s Relevant: Understanding the entrepreneurial journey allows venture capitalists to empathize with founders and offer practical advice, making them more effective investors. Sales and Business Development: Experience in sales and business development roles can be particularly valuable, especially when evaluating startups’ go-to-market strategies and scaling potential. These roles cultivate skills in market analysis, customer acquisition, and revenue growth strategies. Why It’s Relevant: Assessing a startup’s capacity to generate revenue and expand its customer base is critical for predicting its long-term success. Technology and Product Management: For venture capital firms focused on tech startups, experience in software development, product management, or a related field can provide essential insights into product innovation, development cycles, and market fit. Why It’s Relevant: A deep understanding of technology trends and product development processes enables venture capitalists to evaluate startup products' technical viability and innovation potential. 4) Understand the Mindset of a Venture Capitalist Understanding the venture capitalist mindset is more than just knowing how to evaluate companies or make investment decisions; it's about embracing a comprehensive approach to risk, innovation, and entrepreneur support. Aspiring venture capitalists should immerse themselves in this mindset, adopting a forward-thinking, empathetic, and continuously learning attitude toward their work and the startups they invest in. Long-term Vision: What It Means: Venture capitalists often invest in startups with the potential for significant long-term growth, even if immediate profitability is not in sight. They look for transformative ideas that can scale and impact markets or create entirely new ones. How to Develop: Cultivate the ability to see beyond current market trends and evaluate how emerging technologies or business models could evolve. This involves staying informed about technological advancements, societal changes, and global economic shifts. Risk Assessment and Tolerance: What It Means: VC involves investing in high-risk, high-reward opportunities. Successful venture capitalists are skilled at assessing the risk vs. reward of potential investments, comfortable with the possibility of failure, and optimistic about the prospects of outsized returns. How to Develop: Learn to analyze the factors that can lead to startup success or failure, including market size, team composition, product-market fit, and competitive landscape. Practice weighing these factors to make informed decisions under uncertainty. Value Addition Beyond Capital: What It Means: Venture capitalists look to add value to their portfolio companies beyond just financial investment. This could be in the form of strategic guidance, network introductions, or operational support. How to Develop: Build a network of contacts across various industries, cultivate expertise in specific areas of business growth, and learn how to mentor and support entrepreneurs effectively. Build Relationships with Entrepreneurs: What It Means: A key part of a venture capitalist's role is to build strong, trust-based relationships with entrepreneurs. Understanding the challenges and pressures that founders face is crucial for providing the right support and making informed investment decisions. How to Develop: Engage with startup founders, participate in entrepreneurial communities, and, if possible, experience the startup journey yourself. This can provide valuable insights into the entrepreneurial mindset and the challenges of building a business from the ground up. Continuous Learning: What It Means: The venture capital industry is dynamic, with new technologies and business models constantly emerging. A successful VC must be a lifelong learner, always ready to update their knowledge and adapt to new information. How to Develop: Make a habit of reading industry reports, attending conferences, and engaging with thought leaders in your areas of interest. Being open to new ideas and willing to adjust your perspectives based on new evidence is key. 5) Cultivate Your Brand and Story Developing a strong personal brand and a compelling narrative can significantly differentiate you from others. A personal brand is essentially your professional reputation — it’s what people think of when they hear your name. It encompasses your expertise, experiences, values, and the unique perspective you bring to the venture capital ecosystem. Here’s why it’s crucial and how you can build it: Why It’s Important: Trust and Credibility: A well-established personal brand builds trust and credibility with entrepreneurs, co-investors, and within your own firm. It signals that you have the knowledge, network, and skills to add value beyond just capital. Deal Flow: A strong brand can attract investment opportunities. Founders want to work with venture capitalists who have a reputation for being insightful, supportive, and connected. A good brand makes you a magnet for promising startups. Career Opportunities: In a sector where who you know is often as important as what you know, a recognizable personal brand can open doors to new opportunities, partnerships, and career advancements within the VC community. How to Cultivate Your Brand and Story: Identify Your Unique Value Proposition: Consider what sets you apart from others in the field. Is it your deep knowledge of a particular industry, your experience in scaling startups, or your network in the tech community? Define this and make it the cornerstone of your personal brand. Be Visible and Engaged Online: Use social media platforms like LinkedIn, Twitter, and Medium to share your insights, comment on industry trends, and engage with content from other thought leaders. Consistently posting valuable content can establish you as an expert in your areas of interest. Speak and Participate at Industry Events: Speaking at conferences, panels, and webinars or participating in podcasts can significantly boost your visibility and credibility. It also provides networking opportunities and a platform to share your unique insights and stories. Contribute to the Venture Community: Mentor startups, write insightful articles, or volunteer to judge pitch competitions. These activities not only contribute to the ecosystem but also reinforce your brand as someone who is knowledgeable and invested in the success of others. Network Authentically: Build genuine relationships within the VC community. Your brand is not just about what you project online or on stage but also about how you interact with people in one-on-one settings. Authenticity in your interactions can foster long-lasting professional relationships. 6) Proactively Build Your Network with Venture Capitalists and Founders Networking is not just a supporting activity in venture capital; it's a core aspect of the job. For someone aspiring to break into VC, proactively building a network of venture capitalists and startup founders is crucial. This effort is about marketing yourself as a good fit for the industry by showcasing your knowledge, enthusiasm, and the unique value you can bring to a venture capital firm. Here’s why this proactive approach is essential and how it transforms an aspiring VC into a valuable asset for a VC firm: Why You Need to Be Proactive: Visibility: The VC space is relatively small and tightly knit. Making your presence known and staying top of mind for people within the industry is vital. By actively engaging in networking, you increase your visibility and the likelihood of being considered for opportunities. Demonstrate Fit and Passion: Engaging with the VC community allows you to demonstrate your passion, understanding of the industry, and how your background and skills make you a good fit. It’s an opportunity to show, rather than tell, that you belong in the space. Learn and Adapt: Networking with professionals and founders gives you insights into the current trends, challenges, and opportunities within the venture ecosystem. This knowledge not only makes you more informed but also helps you adapt your approach and offerings to meet the needs of a VC firm better. Why a Strong Network Makes You a Valuable Asset: Deal Flow: A broad network of founders and fellow VCs can become a source of deal flow, which is the lifeblood of any venture capital firm. Being able to bring in unique investment opportunities can make you an invaluable member of the team. Due Diligence Support: A diverse network allows you to conduct more thorough and informed due diligence by tapping into experts and potential customers for feedback on a startup’s product or service Portfolio Support: Beyond identifying and evaluating deals, VC firms also work to support their portfolio companies in scaling their operations, entering new markets, and securing further financing. A well-connected VC can leverage their network to help portfolio companies navigate these challenges Industry Insights: Having a network that spans various sectors and geographies can provide early signals on emerging trends, investment themes, and competitive dynamics. This insight can inform a VC firm’s strategy and investment decisions. How to Proactively Build Your Network: Engage in Industry Events and Conferences: Attend VC and startup events, panels, and workshops. These are excellent opportunities to meet both VCs and entrepreneurs. Utilize Social Media and Online Platforms: LinkedIn, Twitter, and other industry-specific platforms can be powerful tools for engaging with the VC community, sharing your insights, and initiating conversations. Offer Value: Whether through introductions, sharing relevant information, or offering expertise, always look for ways to provide value in your interactions. Networking is a two-way street. Seek Mentorship: Reaching out to established VCs for guidance can lead to valuable relationships. Many professionals are open to sharing advice and insights with those who are genuinely interested and eager to learn. Expand Your Venture Capital Network with Visible Venture capital is an exciting field that blends financial expertise with a passion for innovation. It offers a unique vantage point on the future of technology and entrepreneurship. Visible stands as a valuable resource in this journey, providing insights through our resources and The Visible Edge a bi-weekly newsletter with curated resources to help maintain your edge in Venture Capital.

Collecting updates from portfolio companies on a regular basis is an important part of running smooth operations at a VC firm. Well-organized, accurate, up-to-date portfolio data helps investors provide better support, make data-informed investment decisions, and share more engaging insights with LPs. However, collecting data from portfolio companies can also be a time-consuming and frustrating process if you’re not implementing best practices. On Thursday, March 28th, Visible hosted a product webinar covering tips for streamlining the portfolio data collection process for VCs. This webinar recording is not made publicly available. Reach out to our team to learn more about Visible. Webinar Poll Results Here are the results from the poll conducted during the webinar. The top three reasons VCs collect data from companies are: Understand company performance in general Send updates to current LPs Provide better support to portfolio companies Topics Discussed Why VCs collect data from portfolio companies (poll) Top 5 most common metrics to track Founder-friendly data collection What other investors are doing How to set your firm up for data collection success Advice from Visible customers Demo of recent product updates Time for questions This webinar recording is not publicly available. Reach out to our team to learn more about VC portfolio data collection best practices. Related Resources Portfolio Data Collection Tips for VCs The Best Practices for VC Portfolio Data Collection Streamlining Portfolio Data Collection and Analysis Across the VC Firm

Venture Capital funds dedicate a lot of time and resources to optimizing their pipeline processes. However, not all VCs apply the same level of intention and effort to their post-investment processes. This is why portfolio support is not only considered an important differentiator for funds but also a critical part of the success of the fund and its portfolio companies. Value-add portfolio support can help with everything from attracting better deal flow (don’t forget founders talk to each other!), improving brand recognition, raising capital from LPs, and most importantly, helping companies succeed. What is Portfolio Support? Portfolio support is a post-investment process that is intended to help portfolio companies perform, grow, and overcome potential hurdles. This typically includes some combination of the following: New company onboardings Hiring and recruiting Marketing and promotional support Future fundraising support Events Why is Portfolio Support Important? In the early days of venture, capital alone was enough to be a differentiator. As the venture capital market has evolved so have the expectations for VC funds. Formalized post-investment support for portfolio companies has become a differentiator for VC firms — it helps with brand recognition, portfolio company performance, and ultimately improves a firm's odds of increasing returns and raising a future fund. Who Owns Portfolio Support? Portfolio company support is typically owned by the person running a firm's platform. For larger funds, this might be a dedicated person or team (e.g. Head of Platform, Platform Manager, etc.). At a smaller fund, this likely falls on the shoulders of a partner. Related resource: VC Fund Performance Metrics 101 How Do Portfolio Companies Request Support? In Visible’s survey taken by VC Portfolio Operators, respondents shared that they are made aware of support needs from companies in a variety of different ways. The most common is directly from companies (44%) but also from investment team members (29%) and in third place, from Investor Updates from companies. From this data, it’s clear portfolio support requests are being shared in myriad ways with different team members at a fund. This highlights the importance of having open and transparent communication across your fund team so that portfolio support requests can be triaged quickly and by the right person. Getting Started With Portfolio Support Best Practices This guide is created for VC investors and operators who want to level up their portfolio support. The content of this guide is derived from Visible’s 2022 Portfolio Support Survey, Visible’s July 2022 Webinar on Building Scalable Portfolio Support, and the industry experience Visible has gained through supporting hundreds of investors around the world to improve their portfolio monitoring and management processes. Contents of the Guide: What is Post-Investment Support Who Owns Post-Investment Support How to Best Scale Your Post Investment Support Most Common Portfolio Support Requests + Resources Advice for First-Time Platform Managers Ready to take your support to the next level? Learn how Visible can help you with your portfolio management and reporting here.

The volatility of the markets and decline in deal activity makes private valuation adjustments especially challenging this year. Yet even under these circumstances LP’s expect portfolio valuations to be accurate and justifiable. As a VC, you should be prepared for auditors to be even more involved during this year’s audit process as they ensure valuations are as close to reality as possible. Webinar Overview Belle Raab from Visible and Danielle Darley from Weaver discussed how to best prepare for your end-of-year audit. Discussion topics: What, why, who behind the audit process What to anticipate for this year's audit Preparing for the audit process Establishing an audit timeline Recommended do's & don'ts Related Resources: A Simple Breakdown of the VC Audit Process Venture Capital Valuations: Tips for Preparing Valuations for Your Annual Audit Five Simple Steps Key Venture Capital Staff Can Take to Support a Successful Audit Establishing a Valuation Policy

What is fund administration? Fund administration is a third-party service that handles the accounting, cash-flow movement, and LP reporting for Venture Capital funds. Hustle Fund argues that fund admins are the most important part of a VC’s back-office operations. Key fundamentals of funds administration in Venture Capital Fund Admins play an essential role in ensuring critical fund operations run smoothly and also can help VC firms maintain credibility with Limited Partners (LPs). Below we outline the key fundamentals of Fund Administration. Cash flow management and capital allocation Fund administrators are responsible for wiring money directly to founders. The main reason fund administrators handle this process and not the GP is to protect against fraud and ensure accuracy. Fund administrators also handle the capital transactions between LPs and the fund. This includes managing the call-down process, determining how much to request from each LP, and sending letters to each LP with wire instructions. After an exit event, the fund administrators are also responsible for figuring out how much to distribute back to each LP. That’s a lot of separate transactions to manage which is why this can be an extremely time-consuming process. It’s also a high-stakes process with no room for mistakes. An error in the numbers can even result in a lawsuit based on gross incompetence. Limited Partner management Since Fund Administrators are responsible for sending communications related to capital transactions and reporting to Limited Partners, it’s critical that fund administrators keep an up-to-date list of Limited Partner contact information. The fund should share updated contact information with fund administrators as changes occur. Reporting Fund administration also handles the formal LP reporting process as outlined in a fund’s Limited Partnership Agreement. This typically includes putting together quarterly reports of each company’s latest valuation on a quarterly basis but the reporting requirements can vary from fund to fund based on LP requirements. To put together this reporting, fund administrators will source the latest investment information from the VC fund which is why it’s important for firms to keep investment data and fair market value changes up to date and accessible. Preparing these quarterly reports helps streamline the annual audit at the end of the year. Visible provides investors with an easy way to maintain accurate investment records that can easily be shared with fund administrators and auditors. Compliance assistance An important role of a fund administrator is making sure funds are maintaining compliance with the terms outlined in their Limited Partnership Agreement (LPA). This can include terms related to the timing of distributions, what can be considered a fund expense, and the deadlines for reporting. Audit and tax A fund administrator will work closely with other fund service providers such as auditors and tax-related providers to ensure the fund is performing in accordance with regulations. Related resource –> Venture Capital Audit Process: What it is and how Visible can help Modern technology and software solutions There are a variety of fund administrators dedicated to serving the VC industry. As discussed, VC fund administrators play a key role in VC firm operations so it’s worth taking the time to select the provider that is going to be the best fit for your firm. A great way to start is by asking your community for referrals. From there, it’s wise to interview the administrators and actually speak with the representative who will be assigned to work with your fund. Fund administrators differentiate themselves by variables such as the level of sophistication of their tech stack, whether they offer an LP portal, and also by the quality of the service they provide. It’s important to note that the quality of service can be dependent on the representative you work with at the organization. This is why it’s a great idea to meet with the rep in advance of signing a contract. The benefits of working with fund administrators Working with the right fund administrator can mean fewer headaches and more time to spend finding and supporting the best investment opportunities. Below we outline the top benefits of working with fund administrators regardless of your fund structure. Saves your firm time and resources Working with a fund administrator instead of trying to manage accounting in-house can save a firm time and money. This is because fund administrators are laser-focused on all the back-office functions and can be less costly than adding a full-time finance expert to your team. Provides expertise and experience A great fund administrator can provide funds with expertise based on working with dozens or even hundreds of VC firms. This can save less experienced GPs from costly accounting, legal, or capital transaction mistakes. Assists with investor relations management A fund administrator should provide timely and accurate communication to LPs. When fund administrators are executing well it should make the lives of the LPs easier which reflects positively on the fund. Provides compliance and regulatory support Since fund administrators have worked with hundreds and potentially even thousands of VC funds of varying stages, they’ve been exposed to many of the edge cases that could cause an inexperienced fund to make costly mistakes that could hurt their reputation. Fund administrators are well-versed in Venture Capital regulation and compliance which means GPs can leverage their fund administrators’ expertise when questions arise. When is the optimal time to start working with a fund administrator While not always required, it’s a good idea to start working with a fund administrator before even closing your first fund. This ensures your back office operations are set up for success right from the beginning. Many fund administrators have special pricing for emerging fund managers that makes it more affordable to get started. Looking to improve your portfolio monitoring processes at your fund? Visible streamlines the way you keep your companies’ financial KPI’s and investment data up to date and organized so sharing key information with service providers like your fund admin becomes even easier.

We can all agree that first impressions matter. Onboarding a new investment into your VC firm’s community is a key step in setting up the investor <> company relationship for success. Join us Tuesday, August 29th for a discussion with two leaders in VC Operations, Steph Jones from Forum Ventures and Amelia Zack from M13, on how to set up effective portfolio company onboarding processes at your VC firm. This webinar is designed for people working in VC operations who want to improve the way they engage with their portfolio companies post-investment. Discussion topics: Defining the company onboarding process for your firm and why it matters Welcoming companies into your community Connecting companies to resources Setting expectations about portfolio data collection Q&A

VC Audit Definition Before we address best practices it's important to define what the VC audit entails. A VC audit is when a Venture Capital firm enlists a third-party auditor to evaluate its financial compliance. The auditor will review key fund documentation alongside recent portfolio performance to ensure the firm's valuations are accurate. Which VC Firms Require an Audit On August 23, 2023 the SEC approved new rules for private fund advisers. The changes will require all SEC-registered private fund advisers to have an annual audit regardless of size. Prior to this change, some funds were considered exempt but it was still common for VCs to conduct an audit to help better position the firm for future fundraising from potential LPs who want to see audited financials. Purpose of an Audit The purpose of a VC audit can be summarized in three parts: Ensure the fund’s General Partner(s) are operating in accordance with the fund’s LPA and that the financials reflect compliance Confirm the fund’s valuations of portfolio companies and the fund’s ownership position in them Give LPs confidence that a neutral third party validates the fund’s financial statements and assessment of its own success General VC Audit Timeline Audits are typically conducted on an annual basis using end-of-year figures. The audit process typically starts in the final month of the calendar year and wraps up during the first quarter of the calendar year. Although audits only happen once per year, it’s important to maintain clean records of things like company valuations, company financial metrics, fund expenses, capital calls, and other transactions throughout the year. Continual hygiene of fund records translates into a smoother audit process at the end of the year. Here's a general timeline for the VC audit process: Q1 - Q4 - Collect portfolio company KPI's and monitor valuation changes Q4 - Establish audit timeline with fund admin and auditor. Additionally, the pre-audit process should kick off so auditors have a chance to understand a firm's operations. Q1 - In January, firms should be doing year-end valuations and closing their books. During this month fund managers should also be reviewing the books before sending the final figures to an auditor. During January or February, the audit process officially begins. Q2 - April 30 is the official audit deadline but extensions to the deadline can be requested. For more audit best practices check this webinar co-hosted with Visible and Weaver -- How to Prepare for Your Fund Audit. How to Prepare for a VC Audit Choosing an Audit Firm This is an important step in setting yourself up for audit success. When choosing an auditor it's important to choose a service provider who specializes and understands the nuances of Venture Capital. Otherwise, you risk spending time during the audit process having to teach your auditor about your industry. You can do this by checking out their website and if they have published resources on Venture Capital then this is a great indication that they have knowledge of your industry. You should also ask the team you'll be directly working with whether they have experience in the VC industry. If you're an emerging manager and expect to need hand-holding during the audit process, make sure you choose an auditor who is open for ad-hoc questions. During the diligence process, you should ask the auditor about their policy for asking questions and if there is an additional charge. Related Resource: Five Simple Steps Key Venture Capital Staff Can Take to Support a Successful Audit Establishing a Valuation Policy It's a great idea to establish a valuation policy before your first audit. This policy outlines how your firm will justify its portfolio company valuations under different circumstances. Related resource: Establishing a Valuation Policy Preparing the Required Documents and Information While not a comprehensive list, here are some of the items that funds will likely be asked to provide to auditors: Limited Partnership Agreement Financial statements Fully signed deal documentation Invoices to prove the firm is charging LPs for permitted expenses Transaction records (capital calls, distributions, bank balances) Updated ownership positions in each company (cap tables) Proof of valuation calculations/policies Portfolio company contacts (name and email address) Portfolio company financials (year-end) Portfolio company financing documents from most recent rounds Portfolio company balance sheets Portfolio company revenue reports An established valuation policy Pro Tip: Ensure you are sending your auditor the fully executed (signed) version of the documents. Doing this will help cut down time during the audit process and help firms save money. Hustle Fund reminds investors in this article Fund Audit 101 – Everything You Need To Know that it’s the job of the VC to provide this information to auditors and that the required documentation can change from year to year. It can be helpful to ask your auditor to provide quarterly updates about what they will be asking for during the annual audit. Related Resource: 8 Questions to Ask Before Auditing Your First Venture Capital Fund Monitoring Portfolio Companies Using Visible One of the most time-consuming parts of the audit process is the back and forth that can occur when auditors need more evidence on how the VC firm arrived at company valuation figures. To justify valuations, it's important to have key information from your portfolio companies at the ready. Check out the list below to see what you need to have on file. Portfolio monitoring audit checklist: Revenue budget vs actual Cash on hand Burn rate Company performance vs business plan Details about the last round of financing Visible equips investors with a founder-friendly way to ask for key audit information from portfolio companies. Visible's Request feature allows for any custom metric, qualitative question, files, properties, and more. This streamlined approach to data collection helps VC firms keep up-to-date and accurate records about their portfolio companies throughout the year — leading to a smoother audit process. Check out an Example Request in Visible. More than 400+ VCs use Visible to streamline their portfolio monitoring and reporting.

What is VC Portfolio Management? Portfolio Management in Venture Capital is a process used by VC investors with the ultimate goal of protecting and increasing the value of their investments. Proper portfolio management is a cumulation of intelligent decision-making, information analysis, and resource commitment all aimed at achieving the value increase and stability in a range of investments. Portfolio Management within the VC context generally consists of the following: Market Research and Oversight Venture capitalists need to be extremely savvy and up-to-date with the most relevant and real-time information about the industries they investment in. Typically, VC firms specialize in a particular type of investment (pre-seed, seed, later stage, etc) and sometimes they are industry specific (B2B Saas, B2C, EnviroTech, FemTech). Therefore, the portfolio that a VC is managing may encompass many different industries. Investors should aim to understand the most up-to-date research on how each industry and market is growing and changing. This helps investors make smart initial investment decisions, inform follow-up funding decisions, and appropriately advise on timely exit strategies. Risk Profiling VC investing is a risky business. However, a clear understanding of how long it will take to gain a return on an investment is critical for investors and goes hand in hand with market research when setting up a portfolio management strategy. VCs need to profile the level of risk of each investment with an informed understanding how long it will likely take to get their initial investment back (typically 3-7 years) and how likely they are to 10x their investment. The balance of quick return with high potential is critical to consider when managing new investments in a VC portfolio. Exit Strategies As a VC is first making an investment, they typically write into their investment strategy how they hope to exit the business. This plan includes identifying exit targets and appropriate negotiation engagements in best and worst-case scenarios for the business. Strategies might be mergers, acquisitions, buyouts, or public offerings. An ideal exit strategy is important to outline as a part of a portfolio management strategy. This helps investors better mitigate risk and understand the potential outcomes and value of a portfolio. Related resource: What is Acquihiring? A Comprehensive Guide for Founders How Exactly Does Portfolio Management Work? More experienced venture capitalists will use their past experiences to determine patterns in investment strategies and the most effective way to interpret different potential investment outcome scenarios. Ultimately, portfolio management in Venture Capital comes down to understanding the delicate balance of qualitative and quantitative information about the investments in a portfolio. Portfolio management internally within a VC fund consists of market research and oversight, risk profiling, and formulating numerous potential exit strategies. In order to work through these steps, a VC will need updated information from their portfolio companies on a regular basis. VCs are looking for a mix of metrics and qualitative data from their portfolio. If you’re a VC looking to streamline the way you collect data from your portfolio companies, check out What Metrics Should I Be Collecting from my Portfolio Companies. Collecting Portfolio Data in Visible 70% of the 350+ funds using Visible are requesting data from companies on a quarterly basis. Learn more about portfolio monitoring in Visible. Check out an Example Request in Visible. Portfolio Management Metrics Of course, there are metrics that are commonly tracked amongst VC portfolio companies to help VCs stay on top of their portfolio performance. A couple of the key metrics and areas we generally see VCs focused on: Financials and cash position A VC wants the honest truth about how their companies are positioned financially. They will want to know metrics such as Cash Balance, Burn Rate, Runway, and Gross Profit. Investors may also ask for the forecast for these metrics. This information helps a VC determine whether they’re likely to reserve cash for a follow-up investment in a company and what a potential exit strategy might be. Related Resources: Which Metrics Should I Collect from My Portfolio Companies? True North KPIs Depending on the type of business a company is operating, their ‘True North’ KPIs will differ. A company’s true north KPIs should be the key performance indicators that are guiding the business every single day. Beyond revenue goals, examples of other KPIs could be active users, a customer net promoter score, active customers, or average contract value. These KPIs will help a VC determine how the company is performing versus sector benchmarks. Related Resources: Startup Metrics You Need to Monitor Ownership and Cap Table Data If a VC is looking to make a new investment, an important component they will consider for their portfolio management is how much ownership they will have in the company. A founder seeking investment should be transparent about what percent of the company is available in exchange for investment (if any) and how much is already taken. In addition to a clear ownership breakdown, a company should share information about its securities (stock options etc..). This information will be extremely relevant as the VC determines how to structure a potential investment deal. Portfolio Management Qualitative Information Collecting the metrics and quantitative data is only part of the portfolio management process. We also see investors collect a number of different qualitative fields to help them better understand how a company is performing. A couple of examples below: Wins from the Previous Period Founders shouldn’t be shy. Companies should be sure to highlight their most recent, and impressive wins as a company. This will energize and excite a VC who is determining which of their current companies they may want to make a follow-on investment into. Investors will also likely use this information when deciding whether to introduce a company to a potential follow-on investor. When investors make intros to other investors, they’re putting their social capital on the line. Companies who have instilled confidence in their current investors are more likely to get intros to follow on funders. The VC Advantage Venture capitalists take portfolio management so seriously because they of course want to see their portfolio investments succeed and make money. Therefore, outside of putting down the initial investment, venture capitalists usually incorporate many other touchpoints and opportunities to help their investments succeed. Outside of the fiscal advantage VC investments provide, a close relationship with investors and VCs can be a competitive advantage that makes or breaks a company. Ultimately, VCs want to help their portfolio companies because it helps them. In addition to actively monitoring the metric performance of their portfolio, VCs want to offer assistance in any way that they can to give their investments a competitive advantage. These competitive advantage points are also a part of a successful portfolio management strategy. VCs help their portfolio companies in a variety of ways: Taking action on metrics – As mentioned above, VCs are continuously monitoring their portfolio investments. VCs analyze their companies’ profits, customer churn, average deal size, and more. An informed VC can provide insights and advice to companies to help them improve their performance metrics. Drawing form experience managing other investments, they will have insight into what works and what to avoid or change in order to succeed.  Hiring decisions – VC partners are often ex-founders who have successfully built and exited one ore more companies. They are experienced in hiring founding teams and can help advise what roles are the most critical to higher first. Additionally, VCs networks are deep and wide. A founder may have the chance to hire a seasoned CFO or CMO through an intro from a VC. Hiring the right people is critical to the success of early stage companies and leaning on a VC partner to do so may allow a founder to access talent that wouldn’t have otherwise been interested in their company. (Relevant resource: 5 Ways to Help Your Portfolio Companies Find Talent) Fundraising assistance – Fundraising is exhausting but necessary as companies aim to quickly scale their business. After partnering with a VC for an early round, investors want to ensure the right investment partners come onboard for later rounds. If a company is on track to succeed, leaning on existing VC relationships to find additional investors is a smart idea. An existing VC will want to work with other firms or angels they get along with or align with ideologically and will often go above and beyond to help you make new connections and raise a new round of funding. (Relevant resource: How to share your fundraising pipeline with your current investors) Strategic product decisions – With a close eye on the market, a VC can be a good sounding board for what pivots or iterations to make to a company’s product. It’s easy for founders to get stuck in a silo, only focusing on the details of their product. A VC can provide helpful advice on what decisions to make that better keep in mind the market and competitors, even providing tough love on what product decisions might not be right.  Related Resources: How to Lead a Portfolio Review Meeting for VC’s How Visible Can Help Investors of all stages are using Visible to streamline their portfolio monitoring and reporting processes. Visible helps investors streamline the way they collect data from their founders on a regular basis and provides data visualization and reporting tools.  Over 400+ Venture Capital investors are using Visible to streamline their portfolio monitoring and reporting. Learn more.

What is Portfolio Monitoring Portfolio monitoring in the context of Venture Capital is the process of tracking the performance of investments in a venture fund. The primary focus of portfolio monitoring is tracking the financial metrics of a company but it also includes monitoring key operational changes, fluctuations in companies’ valuations, and trends in the respective company’s market or industry. We recently asked 50+ investors to choose their top three reasons for collecting structured data as a part of their portfolio monitoring processes. You can find a summary of the results below — Top three reasons investors take portfolio monitoring seriously: Investors want to better understand how their companies are performing in general Investors want to provide better support to companies Investors need to provide updates to Limited Partners How to Monitor Venture Capital Portfolio Companies Investors struggle to monitor their portfolio companies effectively because if they hear from companies at all, it’s in a format that is unstructured and in a frequency that is unpredictable. This makes it extremely difficult for investors to have an accurate data set from which they can draw meaningful insights or share updates with their Limited Partners. Investors who effectively monitor their portfolio companies have a process in place to collect structured updates from their companies on a regular basis — from day one. In the early days of a fund when there are typically less than 10 companies, this can look like sending an Excel file or Google Sheet template to portfolio companies via email and asking them to complete it and send it back. It’s important to have a reporting process in place from day one because the more time that passes, the harder it can be to change portfolio company behavior when it comes to reporting. As a fund’s portfolio grows, this process becomes cumbersome and investors often find they are wasting time chasing companies, trying to keep track of which companies have responded and which haven’t, and collating numerous templates into a master portfolio data file. Visible helps over 400+ investors streamline the way they collect, analyze, and report on their portfolio data. What Metrics to Track for VC Portfolio Companies To monitor the performance of portfolio companies it’s crucial to track the right metrics across all your companies. The most common metrics to track include: Revenue Cash Balance Monthly Net Burn Rate Runway Net Income Headcount Read more about which metrics to collect from portfolio companies and why. Based on data from the 400+ funds using Visible, most investors are asking for their companies to report 8 metrics and 1-2 qualitative questions on a quarterly basis. Learn more about VC Portfolio Data Collection Best Practices in our guide. VC Portfolio Monitoring Template Visible provides investors with a streamlined, founder-friendly way to collect structured data from portfolio companies on a regular basis. The solution in Visible that empowers investors to easily collect KPIs is called a Request. Visible allows investors to build custom data Requests that support: Automated email reminders to reduce chasing companies Assigning custom metrics to certain companies Sending a Request to multiple points of contact Asking for budget vs actuals Secure linked-based forms for companies Portfolio companies reporting in multiple currencies Check out an Example Request in Visible. Portfolio Monitoring Tips for Venture Capital Investors Set expectations early on. Consider outlining your reporting requirements in a side letter Have a process in place to collect data from day one — it’s harder to change reporting behavior change later on Incorporate reporting expectations into your onboarding process Check out this Guide to Onboarding New Companies into Your VC Portfolio. Communicate the why to portfolio companies. Explain how responses will help inform portfolio support Explain which data will be shared with LPs and which is just for internal processing Explain how it will be used to inform follow on investment decisions Make your data Requests founder-friendly. Don’t ask for more than 5-8 metrics Use metric definitions to reduce back-and-forth Send your Request at the same time every period Make sure you have the right points of contact at the company Don’t make your companies create an account if they don’t want to Turning Your Portfolio Data into Meaningful Insights After going through the effort to collect structured data from portfolio companies the next important step is turning into important insights that can be shared with your team and eventually your Limited Partners. Visible has a suite of tools to help with portfolio data analysis including Robust, flexible dashboards that can be used for Internal Portfolio Review meetings Portfolio metric dashboards to help with cross-portfolio insights Tools to slice and dice your portfolio data by custom segments Over 400+ Venture Capital investors are using Visible to streamline their portfolio monitoring and reporting.

Why It’s Important to Have a Platform Manager in VC Platform managers are instrumental in the success of startups, which is why the role of platform managers within VC firms has become increasingly important and there has been a surge in hiring for this position. By providing guidance and support to portfolio companies, Platform Managers help founders navigate the challenges of building and scaling a startup. They offer advice and support on everything from product development and fundraising to talent acquisition and marketing. Platform managers act as a liaison between portfolio companies and the VC firm, helping founders access the resources and expertise they need to succeed. Hiring a platform manager can also help VCs enhance their value proposition and differentiate themselves in an increasingly crowded market. Some other ways in which they can also add value to VC firms and their portfolio companies are: Strategic Focus: A platform manager can help VCs develop a strategic focus for their investments by identifying areas where they can add value beyond just providing capital. The platform manager can work with portfolio companies to help them leverage the VC’s network, resources, and expertise to scale their businesses. Portfolio Optimization: A platform manager can help VCs optimize their portfolio by identifying areas of overlap or synergy between portfolio companies. They can also help VCs identify potential acquisition targets and facilitate mergers and acquisitions. Value Creation: A platform manager can help create value for portfolio companies by providing access to resources such as talent, capital, and strategic partnerships. This can help portfolio companies grow faster and more efficiently. Brand Building: A platform manager can help VCs build their brand by creating and promoting events, content, and other initiatives that showcase the VC’s expertise and thought leadership in their respective domains. Investor Relations: A platform manager can help VCs manage their relationships with investors by creating reports, organizing events, and providing regular updates on the performance of portfolio companies. How to Succeed as a Platform Manager in VC To succeed as a platform manager in VC, individuals must have a deep understanding of the startup ecosystem and the challenges that founders face. They must be able to build relationships with portfolio companies and act as a trusted advisor to founders. Additionally, they must have strong analytical skills, as well as the ability to manage complex projects and navigate volatile market conditions. They must be able to analyze financial data and market trends to identify opportunities and make informed decisions. They must also have the ability to manage complex projects and navigate volatile market conditions. To get into venture capital as a platform manager, individuals should focus on building a strong network in the startup ecosystem. They should attend industry events, participate in startup accelerators, and connect with successful founders and investors. It’s also important to gain relevant experience in areas such as product development, marketing, and finance. It also helps to read industry blogs and publications to stay up to date on the latest trends and funding rounds. Best Practices for Platform Management Some best practices include, how to identify potential portfolio companies, how to add value to portfolio companies, and how to optimize the firm’s portfolio. Identifying Potential Portfolio Companies The first step in effective platform management is identifying potential portfolio companies that align with the VC firm’s investment focus and criteria. To do this, platform managers should: Develop a deep understanding of the VC firm’s investment focus and criteria, including industry sectors, geographies, and stages of investment. Network and stay up-to-date on industry trends and emerging technologies to identify potential investment opportunities. Leverage the VC firm’s network to source and evaluate potential portfolio companies. Conduct thorough due diligence on potential portfolio companies to ensure they meet the firm’s investment criteria and have strong growth potential. Adding Value to Portfolio Companies Once a portfolio company has been identified and invested in, platform managers can help add value to the company by providing access to resources and expertise that can help the company scale and succeed. To do this, platform managers should: Work closely with portfolio company management teams to identify areas where the VC firm can provide value beyond just capital. Provide access to the VC firm’s network of industry experts, potential customers, and strategic partners. Help portfolio companies recruit top talent by providing access to the VC firm’s talent network and offering guidance on hiring best practices. Help portfolio companies develop and execute growth strategies, including marketing and sales strategies, product development, and international expansion. Optimizing the Firm’s Portfolio Finally, platform managers should focus on optimizing the VC firm’s portfolio by identifying potential areas of overlap or synergy between portfolio companies and helping to facilitate mergers and acquisitions. To do this, platform managers should: Conduct regular portfolio reviews to assess the performance of each portfolio company and identify areas where the VC firm can add value. Identify potential acquisition targets that can help strengthen the VC firm’s portfolio and create synergies across portfolio companies. Help facilitate mergers and acquisitions by providing guidance on deal structuring and negotiation. Work closely with portfolio company management teams to identify opportunities for cross-collaboration and knowledge-sharing across the portfolio. Resources for Platform Managers VC Platform Jobs VC Platform Global Community Let’s Talk Ops OpenLP resources across the venture ecosystem Resources From the Visible Blog How to Hire for Your First VC Platform Role Defining Your VC Platform Approach Using the TOPSCAN Method Guide: VC Portfolio Support Best Practices How to Plan a Top-Tier CEO Summit How to help your portfolio companies find talent Up-and-Coming Platform Managers in VC Meryl Breidbart | Director of Investment Operations | At One Ventures How did you get into platform? I started my career as a designer and founder of Chirps, so when I began at At One Ventures as an investor, I naturally gravitated to filling our platform holes. I started by organizing our first AGM and building some fund partnerships and from there, helped launch our platform and operations team, which now includes a VP of Talent, a VP of Marketing, and a Venture Partner with extensive commercialization experience. What’s the focus of your firm’s post-investment support; what’s your specialty? We know we can’t be excellent at everything, so we have decided to double down on a few areas: talent, marketing, fundraising support, and commercialization. I specifically focus on fundraising. I build pitch decks, run pitch practice sessions, and make introductions for our founders to our vast network of follow-on investors. In addition to this work, I also support our firm with internal operations – assisting with our fundraising efforts and making sure we run a tight ship. What’s your favorite part of the role? Working directly with our founders! I am an extrovert and get energy from talking to lots of different people. I enjoy reducing the amount of work our founders have to do and providing them with best practices and processes so that they can learn quickly. Advice for first-time platform managers? You can’t be all things to all people. Figure out 1-2 strategic goals for the first year of the role and make sure to prioritize those. Otherwise, you will find yourself being a recruiter for company A and a PR firm for company B, which will not scale and will not help you deepen expertise. Mal Filipowska |Portfolio & Platform Manager | Seedstars How did you get into platform? For the first five years of my Venture Capital career, I was always on the investment side of the fund: sourcing deals, preparing investment memos etc. I executed over 30 transactions across Europe, MENA, and India. A big part of my role was building relationships with other VCs and sharing investment opportunities: that’s how I met Seedstars. I instantly fell in love with their investment thesis and commitment to empowering start-ups in emerging markets globally.It was mutual, and the Partners of Seedstars International Ventures invited me to join the team. The platform role was an obvious fit: it was 100% global (opposite to our Investment Managers, divided by regions). It allowed me to continue working with founders from diverse backgrounds from over 100+ start-ups in almost 40 different countries, be hands-on in supporting them in solving their most urgent challenges and have a tangible impact on their journey to success. What’s the focus of your firm’s post-investment support; what’s your specialty? As a global fund, we decided to focus on the most urgent and universal aspect of every start-up: growth. As we can read in the famous Paul Graham essay: “if you get growth, everything else tends to fall into place”.After we invest, our portfolio companies get lifetime access to the “Growth Track” – a tailored consultancy program for start-up teams. It is delivered by growth experts and helps our portfolio companies to develop a long-lasting and sustainable growth strategy. We host such a program twice a year, so portfolio companies can always bring their new employees for us to teach them the growth mindset & methodologies. What’s your favorite part of the role? My favorite part of the Platform role is how it fosters my professional growth within the Venture Capital industry. In the platform role, I am more exposed to the everyday challenges faced by founders, which enables me to actively participate in solving them together. There is no space for beautiful pitch decks or listening to what the VC wants to hear – we’re in the same boat now, so my entire focus is working towards a common goal. Personally, I find it very developing and satisfying. Advice for first-time platform managers? Take your time: Spend some time to dive deep into the role and understand the needs of your portfolio companies. By doing so, you’ll be better equipped to help them succeed.Find your niche: Focus on common challenges your portfolio companies face and become an expert in addressing them. This approach allows you to add “scalability” to your support and significantly impact the board.Stay connected to the investment side: Don’t lose touch with the investment aspect of venture capital. Participate in investment committees and the investment process to maintain a well-rounded perspective and contribute more effectively to your portfolio’s growth.Collaborate with the VC community: Each player contributes uniquely to the world of venture capital. Instead of competing, work alongside your co-investors, join forces with your co-investors, complement each other and build on each other’s strengths.Connect with founders personally: Meeting your founders in person and getting to know them as individuals will help build stronger relationships and foster a deeper understanding of their needs and motivations Regan Gore | Community & Operations Associate | Eniac Ventures How did you get into platform? Prior to joining Eniac, I was in consulting and executive search, and then I taught first grade during COVID. I have honestly found so many overlaps between teaching and platform, and I think that experience helped me hit the ground running when I joined the VC world. I was really lucky to have a wonderful resource in Sam Gelt (a16z) who reached out to me after connecting in a Slack group and helped guide me in my VC job process. Through her and a few other mentors (huge shoutout to Mariana Consuegra (previously BCGDV), Kenyon Cory (Petal), and the Aspire to Her team), I was able to learn more about community and different roles that were community-focused, ultimately finding a path to VC. I have found that platform is a great way to connect with founders and be part of their journeys, especially at a seed firm where we can really provide help and value right away. What’s your favorite part of the role? My absolute favorite part of the role is getting to speak to so many interesting founders as well as connecting with phenomenal partners who can be great resources to our founders. Deepening those relationships every day drives so much of my work, and I love that each day is a little different! Advice for first-time platform managers? My best advice for first-time platform managers is to create your own cohort of founders in your portfolio who you trust + they trust you. I have found this small group has been a helpful sounding board to many ideas, they’ve given me very honest feedback on our platform offerings and have tested out ideas before I’ve brought them to the larger group, and they are great cheerleaders at events and in our slack group! I think a lot of first-time platform managers think that you have to have a “perfect” facade when talking to founders, but they are in the same boat as you, and the relationship is so much better when everyone is open and honest about where they are, what they are working on, and where they can use help. Rachel Hodes | Director of Platform | NextView Ventures How did you get into platform? When I was a senior in college, I decided to take an internship at this relatively new, female-founded, D2C brand that had just closed its Series A. Taking the 1 train down to their chic Chinatown office, which one day became their flagship store, was always the highlight of my week. I remember feeling impressed and inspired by the creativity, collaboration, and community-building that went down in that millennial-pink wonderland, and I knew that this experience was the beginning of my addiction to all things startups. I spent the rest of my early to mid-twenties operating at various early-stage consumer and B2B companies. The “throw spaghetti at the wall to see what sticks” kind of days… *sigh* memories. But like most people, the pandemic forced me to pause, reevaluate my path forward, and be incredibly intentional about what I wanted to do next. I knew I was outgrowing those early-stage operating days but I also knew I wasn’t quite ready to quit startups cold turkey. During this transitional time, I learned about platform from a friend who was actually trying to hire me for a role at his boutique recruitment firm: “Your role here would be similar to that of a platform person’s role at a VC firm.” Oh really? Bet. I started doing my research and realized that platform encompasses all the things I love to do (content, community, operations, marketing, events, etc.) PLUS it directly supports startups and founders in a MAJOR way?! Sign me up. By some kind of kismet, stars aligning chance, my now mentor, Stephanie Manning Cohen (Operating Partner at Lerer Hippeau) had just messaged me on LinkedIn and was interested in chatting about an open platform role on her team. This particular position didn’t end up being the right fit, but Stephanie connected me to the partners at NextView, and it’s been a match made in seed-stage heaven ever since ❤️ What’s the focus of your firm’s post-investment support; what’s your specialty? We focus on the four things that matter most at the seed stage: building a great product, getting great customers, hiring a great team, and not running out of money. I would say my specialty is bringing people together in a meaningful way, and I’m excited to explore that more with NextView’s founder initiatives this year. Stay tuned! What’s your favorite part of the role? Running the NextView accelerator program, hands-down. Bringing a group of early-stage entrepreneurs together and creating meaningful programming and memorable experiences that actually move the needle in propelling their businesses forwards?! There’s nothing more rewarding. It’s also pretty special to see lasting friendships evolve out of the programming you create. The startup founder journey can be a lonely one, and if I can help people feel a little less alone… that makes my heart and soul oh so happy. Advice for first-time platform managers? This role is inherently more fun because you’re doing all the things, but that variety of work also comes with its fair share of challenges. One day you’re working on a website redesign, the next day you’re working on an accelerator kickoff event, and the next day you’re working on establishing your firm’s Affinity foundations. Whatever major project you’re working on, you need at least one, if not two, point partners who can support you in driving towards decisions within the confines of those projects. Aim to divvy up your point partners based on the relevancy of the project at hand and meet with these partners on a regular basis as you’re moving through your work; get their take on things, ask them for advice, talk through your plan for prioritization, etc. The platform work we do on a daily basis is incredibly different than what the investment team is working on; it’s important that you have someone in your corner who has visibility into the work you’re doing and the progress you’re making. And trust me… it makes things a lot easier and more efficient when you’re getting the green light from one or two people vs the entire partnership 🙂 Jenna Borowski | Head of Platform | American Family Insurance Institute for Corporate & Social Impact How did you get into platform? I’ve long been passionate about the role business can play in making the world a better place so when I learned that American Family Insurance was building an Institute for Corporate and Social Impact, I was immediately intrigued. For those who are not familiar, the AmFam Institute’s mission is to close equity gaps in the US and we do that through both running a traditional venture capital fund and developing a portfolio of community partnerships and programs. My background was in communications, but I also had some experience within the startup community and the nonprofit, social impact space. After a lot of networking and a little luck, I took a role leading some of the Institute’s local partnerships and managing a community events space that catered to mission-driven organizations. As I was in on the ground floor of the Institute, I took the opportunity to learn as much as I could about the venture fund, intrigued by the innovation and potential for large-scale impact. This allowed me to dip my toe into platform by helping plan a few events and developing resources for our founders and in less than two years (with help from the pandemic unfortunately shutting down the event space), I made the jump to build out and manage our platform and portfolio services full-time. What’s the focus of your firm’s post-investment support; what’s your specialty? The AmFam Institute is focused on creating an inclusive community of high-performing, mission-driven founders who feel authentically supported and appreciated. We do our best to connect our founders to each other by hosting dinners when we’re attending large conferences and by hosting our annual founder summit, which is definitely my favorite event. Outside of gathering our founders together in person, we’ve put a big emphasis on supporting the health and well-being of our portfolio so we offer a coaching stipend, host monthly mastermind peer group sessions, and offer free drop-in coaching, all in hopes of preventing burnout and helping everyone feel supported because we know being a founder is often a really high-stress and isolating job. I also have to give a huge shoutout to our storytelling and social media team who amplify the work of our portfolio companies through video and social media. My specialty is definitely community building and events so I tend to focus on that, but the content creation is a really valuable part of our post-investment support. What’s your favorite part of the role? There are so many things I love about my role. From the creativity required and the continuous learning to the countless friends I’ve made within the platform community, there’s a lot to love. However, one of the simplest joys for me over the past year has been watching our community grow. It feels almost magical when I see two founders bond at an event or I hear that they’ve stayed in touch long after an introduction was made. It’s a lot of hard work to curate a space where those kinds of connections can form so it’s really rewarding to see it all come together and to know we’re (hopefully) helping them feel a little more connected and supported as they do the hard work of building these truly incredible, world-changing companies. Advice for first-time platform managers? Get connected and don’t be afraid to ask questions! My job got a lot easier when I joined platform groups like Let’s Talk Ops and VC Platform where there are hundreds of brilliant people willing to share their wisdom. It can be intimidating to ask a question when you’re still learning about venture, but there are so many people that enter platform roles without prior VC experience that most likely someone has the same question… or at least remembers having the same question when they started and is willing to jump in with an answer. Cynthia Matar | Head of Platform and Communications | Swiftarc Ventures How did you get into platform? Interestingly enough, I started my career at the Firm as an intern for an analyst position. During my time as an intern/analyst, I discovered how much I enjoyed everything other than the financial/diligence part of the role. I thoroughly enjoyed speaking with founders and finding ways to help, building the firm’s brand and image, networking with investors for business development efforts, and planning and executing activation events. They didn’t quite know where to place me, but understood there was a need for the types of services I was offering. The team very quickly realized the one thing missing (an emerging role in the VC space at the time) was a Platform role/division that could manage all post-investment support and services. I worked my way up from Platform & Media Coordinator to Head of Platform during my time at the Firm and couldn’t be more proud of what we as a team have accomplished together. What’s the focus of your firm’s post-investment support; what’s your specialty? My specialty encompasses Public Relations, Internal & External Communications, Branding/Marketing, Investor Relations, Fundraising and Business Development, as well as Events & Networking. As an early-stage firm, a lot of effort is put into building the Firm’s image and network. What’s your favorite part of the role? My favorite part of the role is quite simply, the versatility of it all. No day looks the same, which makes the role so engaging and exciting to be a part of. I jokingly refer to Platform managers as the “Jack or Jane of all trades.” These are individuals who are able to wear multiple hats and offer a multitude of post-investment support and services. I love the collaboration that comes with the role – you find yourself working closely with everyone across the board (Senior Executives, Founders, Team Members, Stakeholders, and Investors). One of the most exciting parts I’ve had to play was launching each of the Firm’s funds with differing investment theses, PR and Marketing strategies, digital content, activation events, etc. You have a hand in everything, which gives you better insight into the moving parts of how the “engine” runs at a firm. Advice for first-time platform managers? My advice for first-time platform managers is to always be curious! Network with people across the industry, regardless of their roles – remember, you have a hand in it all. Share your thoughts, always. Your perspective is unique in that it offers an unbiased opinion and combines a variety of your experiences, making it refreshing to those who might have a standard set of questions or best practices they always use. Always be a student – your willingness to learn new approaches to apply across the firm is your superpower in this role. Allie Mullen | Director of Platform | Wireframe Ventures How did you get into platform? I’ve spent my career as a startup operator, early employee, and wear-er of many hats. I love working with founders and I love building companies. I’ve always kept a pulse on VC and since I didn’t have a background in finance or consulting, I didn’t think there was an opportunity for me to break in. But as soon as I found out about Platform roles, I knew it was for me. What’s the focus of your firm’s post-investment support; what’s your specialty? Wireframe specializes in helping extraordinary early-stage founders on a mission to improve the health of people and the planet. Our team has deep industry expertise, having been founders and investors in climate, health, and bio for over a decade. I joined the team as a Platform team of one and built the function from the ground up, supporting the fund’s operations, marketing, community-building, events, and post-investment support. What’s your favorite part of the role? It sounds cliche, but I love that every day is different and that I get to work across so many different functions. I also love that this role is still relatively new to the industry and continues to evolve. As Platform leaders, we get to define what Platform means to our fund. There is still a lot of room and opportunity for innovation for what the future of Platform looks like. I am excited to be part of it and to continue to accelerate growth for our founders. Advice for first-time platform managers? Build relationships with other Platform leaders, especially those who have been in it for a while. Platform can be a lonely role, especially for those of us who are teams of one, so connecting with others early on can supercharge your success. Plus, Platform folks are usually pretty similar people and tend to get along well (type-A, social, creative, love a challenge, efficiency, and helping others). Olivia Zdeb | Operations Manager | Hyde Park Venture Partners How did you get into platform? At first, I thought my journey to platform was random, but it turns out it’s a common path for many. I started my career in special recreation, then transitioned to Parks & Recreation for a neighboring Chicago municipality. With over 15 years of experience in events, program organization, marketing, and community engagement, it almost feels like I was training for this role all along. Leaving parks, finishing my master’s degree, and finding my dream job wouldn’t have been in my five-year plan before the pandemic. Taking the risk to leave my established career without a clear roadmap was worth it in the end. What’s the focus of your firm’s post-investment support; what’s your specialty? In addition to the financial support we provide, we also prioritize building strong relationships with our portfolio companies to better understand their needs and to provide them with tailored support to help them grow and succeed. HPVP operates on a true partnership model and focuses on companies rooted in the Midwest, Toronto, and Atlanta. This geographic focus allows us to provide dedicated attention and responsiveness to each of our portfolio companies. Our Platform team collaborates to provide impactful community-building events for our portfolio companies, offer problem-solving resources whenever teams ask for support, and offer personalized talent resources through our Talent Partner Jim Conti. As my role is still relatively new, my value-add continues to evolve with each new investment. With each new investment, I have the chance to establish a relationship with the founding team, understand their unique needs and challenges, and improve my ability to make a significant impactful in my role. What’s your favorite part of the role? I love the creative freedom this role provides. It’s rewarding to see my ideas come to life in the form of marketing campaigns and events that bring new value to our team and community. As a former government employee, I find it refreshing to be in a role with fewer restrictions. As HPVP’s first Operations Manager and the second member of the Platform team, my role has evolved and expanded beyond my initial responsibilities. It’s exciting to me that I can personally drive meaningful improvements for our HPVP team and our portfolio companies. Advice for first-time platform managers? As a first-time platform manager myself, I suggest joining or creating a community of like-minded platform professionals. We’re all learning and growing as we go, so it’s essential to have a support system. I’m an active member of the Let’s Talk Ops, VC Platform, and V2:VC communities. These communities are filled with kind, helpful, and creative individuals who share ideas, collaborate on events, and offer advice based on past experiences. One suggestion would be to take action and “just do it.” While researching the best software, vendor, or service can be helpful, it’s essential to remember that what works for one firm may not work for another. Instead, work within your current systems to maximize their capabilities. Then, identify the constraints that are limiting your next steps. This approach can help you identify the specific resources you need to take your firm to the next level. Anna Jacobson | Operations & Data Partner | Operator Collective Anna leads Operator Collective’s operations vertical, including data analytics, investment operations, internal operations, investor relations, fundraising operations, and fund administration. Prior to joining OpCo in 2020, Anna earned a Master’s in Information and Data Science from UC Berkeley, where she honed her data science expertise, concentrating on predictive analytics, machine learning, and data visualization. An engineer by training and experienced project manager, she is a cross-functional business leader, data strategist, and operations veteran who is passionate about combining technology with process and design to ensure outstanding collaboration across technical, business, and creative teams. How did you get into platform? Very organically! I had never heard the term before I started this job; it does not appear in my job description and even today we don’t call ourselves a Platform Team with a capital P. But most of the work that I do – whether in Operations or in Data – is deeply integrated with our platform functions, so much so that I do now consider myself to be someone who works in platform. What’s the focus of your firm’s post-investment support; what’s your specialty? In a word – connection. Our model is based on the power that is generated by making connections between our portfolio companies and our 200+ Operator LPs – exceptional tech executives – and their networks. My specialty is building and orchestrating the tools and processes that we use in each step of the connection process – to identify, facilitate, track, report, and everything in between. What’s your favorite part of the role? I love it all – from high-level strategic thinking to hands-on building to information design and communications – I find it all profoundly satisfying. Advice for first-time platform managers? Venture is a young industry and platform is an even younger function within venture. This means that practically every part of it is undefined and evolving. This can be a challenge – what exactly are we supposed to be doing?!? – but also an opportunity – we aren’t constrained by what has been done before! Seek allies to work through the challenges and be open and ready to seize on the opportunities. Oleh Karizskyi| Head of Platform | Flyer One Ventures How did you get into platform? Initially, I joined Flyer One Ventures 2 years ago as a Growth/Operations Manager helping portfolio companies with growth, b2b sales, and performance marketing. We did not have a Platform Manager at that time. After 6 months, my team lead left the firm and I became a Band-Aid guy within the fund helping with partnerships and expanding perks, organizing webinars, creating a portal for portcos’ founders etc. Ultimately, the role transformed into Platform Manager combined with the firm’s Investment activity. What’s the focus of your firm’s post-investment support; what’s your specialty? Our fund’s structure is pretty unusual. The majority of our team consists of operators. We have 17 team members, and only 4 of them are in the investment team. We help portcos with hiring, marketing&branding, PR&communications, fundraising, operations, legal issues, and finance support. We have a startup atmosphere in our fund, thus we do not super restrict ourselves with responsibilities zones. One of the major trends inside our Platform is switching from a Hands-on approach towards scaling support by expanding our network of advisors. Personally, I combine fund & community operations (the latest tasks were the implementation of the founders’ request tracking system, arranging webinars for portcos and for the Ukrainian startup community, compiling an internal newsletter for the fund’s community etc), business development & networking, investment activity responsibilities such as startup due diligence, expanding our pipeline and helping portcos with fundraising. We also have a Head of Operations, her responsibilities overlap with mine, so we complement each other. What’s your favorite part of the role? Dynamism and helping founders. I do not get bored by doing the same duties, because they always change. Also, it is great to communicate with founders, find their pain points, and try to help them. It is crucial to show them that they are not alone in their journey. Advice for first-time platform managers? Define what are the pain points of your founders in terms of the fund’s Platform and their businesses, because it will be a waste of time creating value that is not requested. A person can do it by gathering the notes from the investment team that join the board meeting and 1:1 calls. Also, it is helpful to conduct a couple of interviews with founders to get to know founders better. But it shouldn’t be a surprise for first-time managers to find out that smth that was requested is now not needed 🙂 My personal insight was that founders do not share all pains. Such interviews can help founders to reveal their problems and create a comfortable atmosphere for future sharing. Sophie Panarese | Head of Platform & Operations | 186 Ventures How did you get into platform? I began my career at Cambridge Associates learning the ins and outs of asset allocation, manager selection, and overall portfolio construction. While there, I had exposure to all asset classes including Venture Capital. It became immediately apparent to me that the entrepreneurial nature of early-stage VC was something that I wanted to explore one day. With this exciting new goal in my head, I realized that gaining hands-on operating experience would sharpen my Swiss army knife, so I joined the strategy team at HomeGoods where I spent a few years wearing a handful of hats. From there, I began networking and with a little bit of grit and a lot of luck, I’ve found myself at 186 Ventures leading our platform and operations efforts and couldn’t be happier. What’s the focus of your firm’s post-investment support; what’s your specialty? The entire team at 186 Ventures (3 of us) comes from operating backgrounds. We understand that the success of a company goes beyond the initial investment and requires ongoing guidance, strategic advice, and access to relevant networks. Our post-investment support is multifaceted and tailored to meet the specific needs of each portfolio company. We act as strategic partners, working closely with founders and their teams to understand their unique challenges, goals, and aspirations. By leveraging our industry knowledge, operational expertise, and network connections, we provide targeted guidance and insights to help companies overcome obstacles and seize growth opportunities. What’s your favorite part of the role? One of the most exhilarating and rewarding aspects of working in Platform is the opportunity to partner closely with founders who are on a mission to reshape the world as we know it. This is, by far, my favorite part of the role. Collaborating side-by-side with visionary founders who are driven by a deep sense of purpose and a desire to disrupt existing paradigms is truly incredible. These founders possess an unwavering commitment to making a meaningful impact, and being a (small) part of their journey is both inspiring and energizing. Advice for first-time platform managers? Be a lifelong student: The role of a platform manager is dynamic and ever-evolving. Stay open to learning new approaches and strategies that can be applied across your organization. So much of your role is connecting the dots and putting theory into action, so seek out mentors who you trust and who have faced similar challenges. Prioritize user experience: As a platform manager, it’s crucial to prioritize the needs and experiences of your users (Founders, Ecosystem Operators, LPs, Vendors, fellow team members). Continuously seek feedback, understand their pain points, and iterate on your platform to enhance its usability and value. Platform can be defined as a product. By iterating on your product offering, and aligning your product goals with the goals of the investment team, you will play a huge role in differentiating your venture firm from others. Julia Grassa | Head of Talent | Company Ventures How did you get into platform? My professional journey started in non-profit management, where I worked alongside Jewish communities, particularly with teenagers and young adults, to foster meaningful connections and witness their growth over time. Despite initially perceiving my transition to the tech industry as a major shift, I gradually realized that it was a natural fit for me. My initial role as the Community Manager for the Urban Tech Hub program, part of the Grand Central Tech Accelerator, involved establishing the program’s daily operations, yet I was drawn to community engagement as it aligned with my passion. Currently, I lead Talent initiatives and oversee key recruitment searches while facilitating synergistic opportunities between our portfolio companies and prospective candidates. What’s your favorite part of the role? Over the past 6.5 years, my role has evolved in tandem with the dynamic VC landscape, keeping me perpetually motivated and energized. There’s never a dull moment and that’s what keeps me motivated. Advice for first-time platform managers? I recommend starting by observing the firm’s operations, listening attentively to the founders’ needs, and refraining from impulsive action. As someone who is proactive by nature, I must remind myself to take a step back, breathe, and then proceed deliberately. As many platform professionals face burnout, similar to my experience in non-profit work, it’s essential to prioritize self-care for both the body and mind to excel in this role. Kira Colburn | Head of Platform | Work-Bench How did you get into platform? I started my career at a tech PR agency, helping build narratives and stories for a handful of VC clients. After a few years, I realized agency life and working in-house as a VC Platform leader had a lot of similarities and decided to make the jump. In both worlds, days are filled with endless possibilities of things to do and projects to jump into, but instead of working with a variety of clients, I now get to work with our portfolio companies. What’s the focus of your firm’s post-investment support; what’s your specialty? I lean into my strengths coming from a PR background. To put it simply, “Head of Platform” at Work-Bench can be defined as strategy, planning, and execution between our community flywheels of content and events. This includes communications and marketing support for our firm (including writing our Enterprise Weekly Newsletter and managing our active blog) and for our portfolio (including helping them garner PR for their initial launches) as well as event planning to expand our growing community. While our investment team focuses on research and portfolio GTM strategy, my job as the firm’s community builder is to pull commonalities out of our portfolio and broader network, then plan workshops, meetups, blog posts, etc. around those commonalities. What’s your favorite part of the role? My favorite part of being in Platform is the opportunity to draw out stories within enterprise software. It’s no secret that the enterprise software industry is traditionally less sexy than consumer and even general tech. However, there is an interesting story behind every enterprise startup – you just have to dig a little. I love looking into the founder’s journey, where the startup idea percolated, from, how their product impacts the greater way something operates, or how their team is changing culture standards. Advice for first-time platform managers? Over my 5+ years working with and in a VC firm, the “Platform” role has always meant a mishmash of things – everything from portfolio GTM support and recruiting, to event and community planning, to content strategy and execution, to investor relations, to operations management and so much more. Really every and anything under the sun. My advice to first-time platform managers – and what’s going to be most impactful for your firm, and your portfolio companies, but also keep you sane – is to identify your superpower and double down on it. Give up the urge to boil the ocean and focus on a few key areas or projects that can move the needle in a tangible timeframe. Sebastien Boucraut | Chief Scaling Officer | Breega How did you get into platform? Breega is a VC fund founded by Entrepreneurs for entrepreneurs. It was logical, right at the inception of Breega, to dedicate an operational team for the Start-ups. What’s the focus of your firm’s post-investment support; what’s your specialty? We focus on: (i) setting up foundations per vertical with following expertises: Sales & Structure, Growth, Talent, Branding & Com (ii) accompanying the Founders to review/crack an operational matter, such as GTM, Pricing Strategy, operational efficiency, Re-branding, Re-shape the organisation, the Roles & Responsibilities for a stronger performance (iii) Mentoring & Coaching What’s your favorite part of the role? When we have a strong impact on the Start-up & its Founders and we are able to measure it. Advice for first-time platform managers? Be pragmatic, adapt to the structure and the DNA of the Start-ups & Founders, and always be honest to yourself on what you can and cannot provide. Kayla Liederbach| Communications & Marketing Manager | Strut Consulting How did you get into platform? I got introduced to the wild world of VC platform when I was managing marketing at a VC-backed tech startup. One of our investors was a General Partner at a venture capital firm, and a mentor of mine. He asked me if I could help his firm put more intention and coordination behind the marketing efforts of its programs based around the world, and raise the visibility of the firm as the brand behind it all. This was nearly a decade ago when best practices for VC marketing weren’t widely known or shared. Over the years I have figured out what works—and just as importantly, what doesn’t work—when it comes to attracting founders and LPs by doing social media, content, newsletters, events, and PR for venture capital. What’s the focus of your firm’s post-investment support; what’s your specialty? At Strut, we are a consulting firm helping new and established fund managers navigate the complexities of VC fund management. Our expert team provides strategy, instills best practices, and delivers tactical support in Operations, CFO Services, Investor Relations, HR & Talent, Marketing & PR, and Events. My specialty is handling Marketing and PR for Strut Clients. I provide strategic guidance and tactical support based on their current needs—whether it’s writing punchy tweets or landing headlines in TechCrunch. What’s your favorite part of the role? My favorite part of my role is helping people tell their stories. I am a believer that every single person (or company) has an interesting story, but they don’t always know how to tell it. That’s where I can help by doing a deep dive and seeing what comes out. In life, I enjoy looking at patterns, and seeing the big picture. People who know me well have told me that I am a very entertaining and animated storyteller. Advice for first-time platform managers? When it comes to marketing, don’t try to do too many initiatives if you don’t have the bandwidth for it. VC firms often compare themselves against top players and want to do all the marketing initiatives they see the industry leaders are doing, like podcasts. But if you spread yourself too thin, you will burn out. Choose to do a few marketing initiatives that you know are working well and that you enjoy doing. If we aren’t enjoying ourselves, then what the heck are we even doing? 😉 Gil Birnboim | Head of Platform | UpWest How did you get into platform? During the last decade, I have gained valuable experience working closely with startups across various industries and domains, focusing on different aspects of ventures and the Tech ecosystem. Throughout my journey, I discovered that my true passion lies in empowering startup operations and sharing best practices to fuel the growth of founders and help set their companies up for success. What’s the focus of your firm’s post-investment support; what’s your specialty? UpWest is a Silicon Valley-based Seed fund purposefully designed to help Israeli startups break into the US market. We have backed over 90 companies and helped them grow through our hands-on approach. UpWest provides the essential ingredients for success: Seed funding, proximity and access to markets and capital, a supportive community of talented peers, and a workspace conducive to rapid development and deployment. My specialty centers on creating a supportive community where founders thrive and leverage collective knowledge for success. By implementing a founder-first approach that is deeply focused on, and consistently influenced by the journey of entrepreneurs tackling similar fundamental market entry and growth challenges, I bring together our founders and facilitate various opportunities for them to connect, share their experiences, and support one another in overcoming challenges. What’s your favorite part of the role? The people! Working alongside inspiring, resilient, and ambitious individuals that are bringing disruptive ideas to life. Advice for first-time platform managers? My advice for a first-time platform manager is to embrace versatility and plan a roadmap for each area of responsibility. The platform landscape is expansive, so being able to switch between projects and tasks demands mental flexibility and self-discipline. It’s essential to connect with like-minded individuals and cultivate a supportive community for yourself. The opportunity to exchange perspectives, brainstorm ideas, and learn from others’ experiences is immensely valuable. Adrienne Mangual | VP of Finance & Operations | The Artemis Fund “We use Visible to connect monthly KPIs and annual impact metrics from our portfolio companies. In turn, we use monthly data to stay on top of performance and the annual impact data is used in our annual impact report. Examples of data collected include revenue dollars driven to small businesses, families served and jobs created. We strive to be a data-driven venture firm, and Visible allows us to do just that.” More Platform Managers to Watch: Eileen McMahon Coordinator of Operations at Prelude Ventures Ellie Davis of TechNexus Frances Choi Operations and Events at Kindred Ventures Lu Yu at UpHonest Capital Emma Sissman Director of Portfolio Acceleration at SJF Ventures Kristin (Stannard) Kent Principal at Expa Arnaud Hochart Growth Manager at Breega Olivia O’Sullivan Head of Platform at Forum Ventures Improve Post-Investment Operations with Visible Over 400+ funds are using Visible to improve transparency across their funds through streamlined portfolio data collection, easy-to-build dashboards for Portfolio Reviews, and professional reporting. Interested in learning more about Visible?

Watch a recorded conversation with VC Ops experts about improving post-investment operations at your VC firm. Collectively Kristen Ostro from Strut Consulting & Let’s Talk Ops and Lacey Behrens from 01 Advisors have been exposed to operations at dozens of top-tier VC’s. We’ve invited them to share their advice about implementing best-in-class operations at a venture firm. This webinar is designed for anyone looking to improve operations at their Venture Capital firm. Topics Discussed: Tips for working with your fund admin How Lacey runs Portfolio Review Meetings at 01 Advisors How to tailor onboarding for portfolio companies Tools that help improve post-investment operations How to measure whether operational changes are working or not Advice for first-time platform or VC operations hires