10 Benefits of an Investor Management Software for Venture Capitalists
Investor management software makes it easy for venture capitalists to make crucial decisions about their investments. This means that professionals can enjoy efficient portfolio management and accurate results; saving much needed time and resources.
Investor management software makes it easy for both venture capitalists and their business partners to communicate and collaborate. While we tailor our software to the needs of VCs and operators, we keep it simple and can help you build your own management platform and find new areas for expansion.
29% of startups are predicted to fail or experience severe growth limitations due to an inability to receive the necessary funding. At Investory, we believe that a better management system for both startups and investors can help to improve that statistic.
Why Investing in Startups is a good idea
There are many reasons why investing in startups is a good decision. But the simplest reason? You are poised for high returns. But, only if you do it right. That’s where platforms like Investory come into play, you mitigate many of the risk factors while setting up for strategic financial return.
Leveraging investor software to manage portfolios and track investment performance is the single most effective way to do this.
What is an Investor Management Software?
Through innovative technology, investment management software empowers you to be proactive in your approach and lays the foundation for enhanced portfolio performance.
Investment management software helps you track, monitor, review, and understand your investments. But one of the most useful elements of investment management software? We’ll give you a clue: the name is pretty literal, it helps to manage investment portfolios with ease and gives venture capitalists control over their investments.
Some of the features of investment management software include asset reporting, portfolio management, and investment tracking.
10 Benefits of Using Investor Management Software
Investor Management Software for venture capital firms allows you to do more than just track your firm's financials. Use the following top ten benefits of an investor management system for venture capitalists to see how it will be an asset.
1.Streamline portfolio management
Investment management software offers a variety of features and integrations that will help you create a portfolio that offers stability and peace of mind, and grow your money into something that you can build on. When your portfolio begins to expand, managing each aspect can prove tricky. With software designed to streamline this process, your access to KPI’s is almost instantaneous, and you will know exactly who you need to contact and when. You'll know if the company or startup that you are investing in is growing or shrinking within seconds. You can track the latest developments of your investment KPIs, see how much they're valued at, and know exactly who's the right person to get in touch with.
2. Review investments with ease
Most venture capitalists understand that by diversifying, they can cut down on risks. But diversifying can also play havoc with your organisational skills- especially when it comes to financial assets. The more diverse your portfolio, the more challenging it is to review all aspects of each investment. And that's exactly why it's so important to regularly review your investments. It’s no secret that growing financial assets becomes challenging to manage. As your portfolio grows, you'll need to review it more critically and keep a firm grip on the investments on a regular basis. Investment management software gives you an iron first and a clear vision, so you can easily find the best way to diversify your investments, regularly review investments, and maintain a high return.
3. Organisation made Easy
Poor management of wealth leads to loss of wealth. That is why you need investment management software to manage wealth so that nothing is lost due to poor organisation or oversights. Sophisticated software can help provide a way to organise and monitor your investments, and this system will allow you to be assured that nothing will go missing.
4. Save Time with Real Time Data (all in one place)
Imagine how much time you'll save because all your important data and portfolio documents will be in one place.
Imagine a software that can make it easy to view and collaborate on all the latest data and statistics.
Investor management software gives an integrated solution for venture capitalists access to real-time data. This accessibility helps assess risks, track portfolio performance, and manage all client-investor relationships. The best part? All of this can be done from one central hub.
5. Improved Mentoring for Improved Financial Results
Sure, metrics matter- but mentoring? That can be the key ingredient that takes a startup from a flop to a rip-roaring success.
But how does software help you do that?
If you want to stay involved with your portfolio companies, but it's difficult to keep track of what they're doing, you can use a software service to connect with your founders and receive regular updates on the latest business developments.
This will become a powerful tool for improved mentoring when communicating with founders. And better mentoring equals better performance, which will lead to improved financial results.
Why is LP Reporting so important?
A few years back, capitalists may have been happy to wait for quarterly reports. Times change and investors are realising the value that transparency can offer. With this increased communication offered by investor management software, venture capitalists can have access to in-depth information that can be leveraged to improve results. This tool forms part of any investment management software worth its salt- because when the reports are powered by metrics, documents and comments, you get a first-hand look into the latest business developments and can track performance alongside founders.
6. Gives you Control
While a portfolio management dashboard doesn't hand over all the reins to investors, it can give them the exact amount of control needed to maximise knowledge and expertise needed to boost performance.
Having access to key metrics is essential. It allows you to track the health of your investments, analyse and predict how they will grow over time. This gives you control- especially with a razor-sharp approach driven by data. A software solution like Investory.io helps you define actionable insights from the flood of funding data and make better, faster investment decisions.
7. Improve Important Decision Making
Sure, we’ve already mentioned how investment software can give you access to reports and data, but what you may not know is that this can also help to safeguard against poor decisions. Because if you don’t have a clear view of the metrics behind your potential investments- you are not making informed decisions. With a data-driven dashboard, venture capitalists get a birds-eye view over portfolios. This helps to identify gaps and even gain access to debt-equity ratios. These metrics will help to shape a targeted investment plan that is based on daily updates. Whether you need to access stocks, mutual funds, or bonds, all of this is in one convenient cloud-based dashboard- giving investors the eagle eye vision needed to make the right decisions.
8. Improved Risk Management
Investing in startups is risky. But you already know that. By using online portfolio tools that offer both portfolio management analysis as well as portfolio management solutions, you can begin leveraging asset reporting. A software management system will help to analyse diverse risk models, target assets with high returns, and give you insight into assets that may carry a higher risk than others. While not all risky investments can be avoided (we’re talking about a 10% startup success rate here), you can bring a more balanced approach to your investment portfolio by targeting investments that carry a higher potential for reward.
9. Improve Focus
Whether you need to first rely on building your portfolio with the online tools provided or make the most of the investment analyst software for existing assets, portfolio management solutions can tailor a laser-focused approach for any VC or fund manager looking to boost their asset management. Portfolio management tools will often include a fund tracker app and other asset management tools that help your management team stay focused on the highest-ranking investment opportunities.
10. Be Efficient with your Efforts
While the saying “work smart not hard” is debatably a somewhat outdated term, we know how valuable time management is. With that being said, a portfolio management platform places more emphasis on efficiency rather than effort. Why spend hours hunched over complex allocations when you can sit back and let a specifically designed software automate these allocations?
The Bottom Line
Whether you are an asset manager, financial advisor or fund manager, improving the way you manage portfolios can streamline your success. To do this, you need:
data that is real-time, accurate and accessible. You need insights that are clear and relevant. And you probably want to do it in a way where you spend less time on administrative tasks and more time on crafting valuable investments.
Investory.io is a solution designed to help financial professionals to manage investments and portfolios for a diversified client base. For a venture capitalist, being able to easily track investment holdings, performance and data analytics from one integrated location is vital to staying on top of the investments. In addition, having your founders' financial information and key metrics at your fingertips allows you to serve them better with improved mentoring, thereby increasing your revenues.
Investory.io is an investment software that lets you track your investment in seconds. Make success simple, book a demo and see how you can begin transforming your investment portfolios today.
