The Venture Capital business constantly is changing, and these alternations are now happening with ever-increasing momentum. The number of companies seeking funding increases exponentially every quarter, and cornering the attention and remaining relevant in new investment markets has become a tough job. This situation gets more complicated if we factor in new developments, including the current tighter funding lines, focus on climate change, international conflicts, supply chain constrictions, and the new 3.0 web, which must be addressed if you want to take your business further.
How does this play out for the VC market? On one hand, the new funding horizon is forcing them to optimize returns and keep on top of changing trends to ensure they pick the winners. On the other hand, it calls for adopting new strategies and developing a broader investment focus. In addition to the above, one of the challenges brought by the transformation of the VC industry is the shortage of talent in all ranks from CEO to financial analysts, causing recurring delays in operations and hindering the effective flow of business.
So, how can you step up and confront VC trends and challenges and have your business come out on top? The following are the 3 key trends that you need to understand to address them in your business model.
Automation for deal management
Successful VC firms are devoting much of their resources to innovating around the use of automation and process optimization. Although this business is still being handled manually and individually in most cases, digitization is gaining ground.
The use of technology has proven to be one of the success factors of different investment businesses that have replaced coffee chats and notebooks, as stated by Jules Maltz, General Partner at IVP.
Networking, task management, databases and operational efficiency tracking are essential in the investment business to be aware of the behavior of operations. IT strategies include automating CRM platforms, the use of data analytics and big data, customer service through outsourcing firms such as Apertura, as well as leveraging project and task management resources.
Know your insights and be willing to adapt
In order to become a smarter investor, it is important not only to analyze the competition but also to have deep analytics to identify your own insights as a growing business. VC founders invest in data analysis to interact with their information and develop new ways to improve operational efficiencies and identify patterns in every previous investment success.
Increasing use of data trends approaches businesses with ways to gain detailed insights into their performance and adapt to every new challenge VC is facing nowadays. Also, these resources allow the business to get to know specific audiences, investors and networks. Digitization, AI, relationship intelligence and business intelligence is still the top strategies to decrease costs and improve the ROI of VC teams.
The most important part of this strategy is to generate a clear picture from the chosen business model and determine a budget to invest in financial tools, but also in business introspection to understand the adaptability of the company, the impact of risk to the VC firm and other data that will place them one step ahead of crises. Remember, data isn’t just for finance teams anymore.
Outsourcing allies to succeed
VC firms invest a lot of time in automating, optimizing and maintaining the performance of a company. That’s why many innovative firms prefer to hire outside help in specific tasks their teams lack knowledge in, thus becoming more effective and efficient. These are the tasks that are holding up their growth and slowing down their company’s progress.
One of the best ways to achieve this workforce optimization is by hiring outsourcing professionals. These professionals can help with tasks like accounting, writing marketing materials, and managing social media accounts—all of which can be cumbersome, time-consuming, and, if done without specialized knowledge, can hurt the brand and the company.
At APERTURA we have been advising investment, VC and private equity businesses for over 15 years on how to boost their performance to their fullest potential, while we take care of processes that can be improved and optimized, such as financial modeling, market research, data analysis, contact center, presentation developments, safety procedures, regulatory compliances, cyber security, IT, content creation, brand management tech services, SEO optimization and corporate strategies. In short, we can find a skilled professional to address any of your specific needs, for the time and the jobs you need them to perform.
Investment in outsourcing has become a key strategy for firms to improve growth and successful business investments. In fact, the number of companies using outsourcing services is growing at a rapid pace, and this trend is expected to continue decreasing costs and improving businesses’ performance.
Are you ready to increase your business potential? Contact us to find out ways to revolutionize your processes and discover new ways to stand out from your competitors with our outsourcing services.
