A good VC has the uncanny ability to pick good investments and help build thriving companies. But the competition they face is fierce, and today’s entrepreneurs have plenty of choices when it comes to venture capital tools.
This has forced VCs to up their game—each firm strives to be “the firm of choice” and a magnet for promising young businesses. Every VC tells you the same thing…
“We have a winning thesis. A bench of top talent. Access to the best deals. A repeatable playbook.”
Let me emphasize that every VC says this. How can they all be the best of the best? I’ll tell you a secret; they’re not. But, there are attributes that make a firm stand out and rise above the rest.
The VC forgot to mention in the quote above that it’s the way firms manage, measure, communicate, and, most importantly, repeat the processes that make them successful. If you have the right people (LPs & GPs), at the right time (VCs raising funds), with the right approach (today’s LPs expect a personalized relationship), then you’ll outshine the competition.
How can firms fine-tune their processes and stand out with excellent people, impeccable timing, and perfectly nurtured relationships? We’re in 2021—there’s no way to achieve ultimate efficiency and intelligence without technology.
Human brains just aren’t complex enough to do what technology can do in a fraction of a second. There are tools that will sort through a mountain of data seemingly instantly, while a human would have taken weeks if not months to do the same job.
There are tools to assist in research, portfolio management, matchmaking tools, and everything in between. Technology is transforming the industry.
We’ve created a spreadsheet covering the spectrum of must-have tools for VCs by domain—from soft skills to hard skills, there is something for everyone.
See the complete list of 200+ tools for Venture Capital here.
Must-Have Venture Capital Tools
While adopting technology is necessary for VCs to leverage the right people, at the right time, with a high level of service and intelligence, you need to pick the right technology for your unique needs. What are your specific strengths and weaknesses?
Below we outline the different categories of tools available to VCs.
Traditional Data
These traditional tools feed intelligence to VCs. From information on global venture capital and private equity to public markets and beyond, the traditional data and news gained from these tools help VCs make educated business decisions.
3rd Party Data (Enrichment)
Intelligence tools help firms identify benchmarks, gather company data, provide patent and trademark information, and share tech stack data and recommendations.
Research
The research phase is critical for VCs. Research tools make it easier to connect to relevant experts, predict future impacts, view market trends and analysis, and much more.
Dealflow CRM (Startups)
VCs need a CRM to help manage their contacts, companies, deals, and other essential aspects of their processes. This list gives an extensive view of the options.
Portfolio Management
When managing a portfolio, there are tools that can help make data-driven decisions. Manage, raise, and fund your portfolio easier, faster, and without error with the right technology.
Matchmaking Tools
Matching the right investors with the right entrepreneurs is what makes VCs successful. These tools help find, manage and fund the right startups.
Network CRM (People)
Who you know can make a huge difference. Network tools connect you to the right people at the right time and help you track your relationships and collect data.
News Resources
VCs can keep up with market trends, the latest deals, emerging tech, successful strategies, and more by staying in the loop with the news. These tools make staying up to date more efficient and focused.
Scout Sources
With scouting tools, VCs can keep tabs on makers, early adopters, and new technologies.
LP Tools (for GPs)
LP tools for GPs provide an investor marketplace. Get intelligence on institutional asset flows and reporting.
Liquidity Instruments
Liquidity instrument tools provide a solution for raising capital and secondary trading. They can do things like create compliant digital securities, gather data and analysis on M&A deals, invest or sell shares of private companies, and more.
LP Tools (for LPs)
LP Tools for LPs offer benchmarks for LPs, portfolio monitoring, reporting, and diligence.
Now that you know the wide range of Venture Capital Tools available, you might be overwhelmed with the options. If you’d like to talk to an industry expert, contact Altvia, and we’d be happy to walk you through our recommendations.
