If you are investing your money in a promising private company through a venture capital firm, you will want—and need—to know how and where your money is being used and how your company investment is growing. You'll also need to keep abreast of potential risks that may arise, and you will definitely need to sign and upload documents from time to time. Venture capital portals serve as a reporting system for your invested monies, making it easier to keep track of company growth, investment metrics, and your role as a limited partner for one or more ventures.
Here are some specific benefits of a venture portal's access:
Depending on the type of company that you've invested in, you will want to keep track of that company's metrics that are relevant to your investment. For instance, if you've invested in a pharmaceutical company, you may want to keep track of research and development spending. For a business-to-consumer Software as a Service (SaaS) start-up, you may need to keep track of its revenue churn rate.
Portals can help you keep track of the company's operational and financial performance as well as its marketing return on investment. Most portal dashboards have many metrics to choose from as not all metrics have the same value to one investor as another.
Venture capital partners are responsible for their due diligence in regard to their investment. From tracking financials to uploading legal forms and signatures, portal reporting systems keep partners in the know regarding partner agreements, the documentation of partner rights and privileges, voting agreements, and right-of-first-refusal documents. The type of documentation a venture partner would need to track, like tracking metrics, is dependent on the investment.
It is beneficial for the investor to keep track of every piece of documentation that needs your signature. Portals allow you to view and upload signatures, and then route them immediately to the person or entity needing the documentation. As there is usually more than one investor in a company, the importance of organized documentation for each investor is a key benefit to accessing a partner portal.
Tracking Company Growth
You will also be able to keep track of your company's growth through a venture capital limited partner portal as well as keep tabs on the company's other investment partners. Transparency at your fingertips is perhaps one of the most beneficial reasons to access your investment's venture capital reporting system. By being able to access all the metrics, documents, and growth, you can readily check the ROI of one or more of your ventures.
For more information, contact a finance company, such as ARK PES.