Investment funds have the responsibility of managing the money they have received from their investors. Therefore, one of your most important roles is to make investment reports to those Limited Partners (investors linked to the fund) with the agreed periodicity. For these reports, there is a very important key element: the information of its investees. Summarized like this, it seems a simple task. But is not.
Today there are many tools available in the market that facilitate the process of managing the investee portfolio, automating the analyzes and reports. But no tool addresses the biggest difficulty that fund managers face: collecting information from companies.
The fund manager often loses hours of his day by sending mails or by calling the managers of the investees to ask for the information he needs to prepare the reports. All this management, often, requires the hiring of personnel to dedicate exclusively to this task. Therefore, it is easy to see that the cost of obtaining information from companies is not easy (or cheap).

In the case of Venture Capital, the main reason for this is that the invested companies are startups and have very limited resources. Both for the startup, as for the investor, there is a common interest in putting focus on growing fast. But, with so much work and few staff, the task of collecting information ends up not being prioritized by startups and there is a gap of interest between the investors who need the information and the companies that are focused on other needs.

In this scenario, our tool, Private Investments Network, emerges with an innovative approach in the market. It is a tool with three basic profiles: the company (which uploads its information), the fund (which processes the information) and the Limited Partner (which consults the information processed), adding value to each of them.

From our experience, we have noticed that in many cases for small businesses it is difficult to get them to dedicate the time necessary for this data update on our tool. For this reason, we have reached an agreement with our partner EuroBackOffice, a company that is in charge of helping companies to upload their information to the tool or, if desired, can upload the information itself.
EuroBackOffice does the work of collecting company information by contacting them until it has everything necessary for the fund to find the information automatically and updated. Thus, the fund manager always has the necessary information and can devote his time to where he can add value: analyze these data, investments and pass quality information to the Limited Partners.
In this way, the management costs of Venture Capital funds are optimized a lot while providing a tool that benefits:
  • The companies, since it is not an exclusive channel with each fund, but it is a unique channel of communication with ALL their investors.
  • The fund manager, who does not need to “fight” with companies to get the information and can add value to improve reporting and analysis of investments.
  • Limited Partners, who have their updated portfolio display with access to all information they have given permission.
All this allows to eliminate the gap of interests that exists between the companies and the investors, facilitating to all their work and so they can devote their time to its core-business, that is where they can contribute their added value.

Do not hesitate to contact us if you want more information about this service. 

Authors: Helena Lopes y Guillem Comí.