Venture Capital firms have the opportunity to assist their portfolios in several ways. Firms have three primary objectives:
Venture capital firms have a vested interest in the success of a company. Having one-on-one discussions with the leaders of portfolios is a great way to evaluate not only the health of the business, but the health of the individual, too. This becomes an opportunity to check in on goals that were previously set, troubleshooting business challenges, and nurture personal relationships.
Assisting with developing benchmarks
Setting expectations and ensuring the goals of each party (VC firm and founders) are in alignment creates a clear plan and foundation for how the funding will be allocated. Each time there is a meeting centered around the business, VCs ensure there are objectives set on each sides to prevent misunderstandings in the long term. Having frequent opportunities to check in with the startup company ensure agreed upon benchmarks are met. It also allows both parties the opportunity to alignment quickly realigns if changes occur to continue a smooth process.
Help conduct business development
In the same breath of having a strong understanding of alignment, firms assist their portfolio companies in conducting efforts for business development so that companies reach their goals. Helping with quarterly sales, nurturing business relationships, and providing any support to develop business help put the company in a better place.
Creating opportunities to reach business goals
Some firms put their portfolio companies in significant positions by lifting some of the day-to-day work. Helping with portfolio positioning, conducting research, providing additional operational support, and even hosting special events are all ways VC firms oftentimes create productive activities for portfolio growth.
Assist with HR procedures
Managing staff and new hires can be daunting tasks among all the other responsibilities for new CEOs and founders. Many startups lack the resources needed to get the right talent in place to back the company’s missions and goals. Not only does it help when firms lend a hand with good sourcing employees, but firms also have a strong understanding of what the company needs, and naturally a stronger investment in finding the “right” resources make a tremendous impact on the overall business.
There is plenty of ways venture capital firms get involved and help move their portfolio companies’ businesses forward outside of writing a check. Whether it is employee sourcing or simply check-ins, providing additional support shows startups that firms are invested more than financially. Be sure to follow up on LinkedIn.