Sometimes even the most seasoned VC firm can use a helping hand. A Venture Capital consultancy puts a team of VC specialists at your disposal to bring the knowledge of best practices from other VCs to the fore.
2020 was a challenging year for venture fund administration. On top of a pandemic that has resulted in the worst economic downturn since The Great Depression, the competitive landscape is more fierce than ever. Many VC fund managers have had to transition from seeking new avenues for growth to merely keeping the lights on.
When you’re not sure how to optimize to thrive in this current climate, that’s where a VC consultant comes in. Whether you need assistance with financial analysis and modeling, pipeline management, optimizing your processes, or investment support, a consultant can help.
Good venture capital consulting will go beyond conducting due diligence and connecting you with hot tech startups – Here we’ll list just some of the services VC consulting firms can offer.
Early Stage Funding
Many VC consulting firms offer investment banking services or advice on the topic. This means they can help guide your firm through the early-stage funding process of whatever company you are looking to assist
VC consulting firms don’t just provide help at the start of funding. Their expertise in the field can give you a set of long term business plans, best suited for the industries you are interested in. A good VC consulting firm will have veterans of venture capitalism on board who can walk you through the processes they’ve seen countless times before.
One of the key strategies that any VC consultancy can give information on is the management of your business portfolio of funded companies. These consultants have a good idea of what a well-balanced portfolio will look like, and can help you develop business plans to grow your portfolio.
Due Diligence Preparation
Before any funding can be given, it’s essential to perform a careful process of due diligence with regards to the company you are interested in. A VC consulting firm will have a comprehensive understanding of these kinds of checklists and can make sure your firm covers every possible point.
Venture capital consultants will have a good understanding of all aspects of how venture capital should work. They can give advice on your general operations, VC accounting, and financial modeling, including the workings of back end systems. If you’re worried that your operations aren’t working at full efficiency, this can be a major load off your mind.
For many up and coming firms, their technology is the core component of their business. Life in the digital age means every business and their portfolios are intrinsically linked to a complex web of technology. Keep an eye out for VC consultants that offer technology consulting as part of their services.
Strategic Partner Development
Strategic Partner Development wherein a VC consulting firm helps align you with other firms or companies that they feel will be useful partners to your own. Often these will be entities the VC firm has worked with directly in their past enterprises, giving you a key networking connection.
Investor Relationship Counselling
One of the key parts of operating as a venture capitalist is the investments themselves. Many venture capital consultants are skilled at helping you build a close relationship with your chosen portfolio companies, ensuring a smooth process of equity acquisition.
Do Your Research!
Think that a VC consultant is what your firm needs to find success?
The best next step is to start doing your research based on the list above – find a consultant that offers which services you think are best for your firm’s business plans. Make sure you also find a consultant that has good recommendations and a resume behind it.
Lots of people think they’ve figured out venture consulting after dabbling in it, but you want a consultancy that has worked with some of the top VC firms in Silicon Valley and beyond.
At GCG, we’re in the business of helping investment funds succeed through strategic financial and back-end management. We help our VC clients overcome their unique challenges in ways other outsourced financial and accounting firms do not. More than 200 Venture Capital and Top Private Equity Firms have found that our back-end financial and administrative services save them time and money by providing the high-level executive insight they demand but don’t need as a full-time employee.
If you’re looking for support in managing the finances or processes at your venture capital, reach out to our VC consulting services specialists and we’ll get right back to you.