Making The Most Of Your Money

Features To Look For When Choosing A Venture Capital Reporting System

24 March 2022 by Glen Robinson

When you put capital into multiple businesses, you need the ability to track each company's financials. But how? You could have each company send you bookkeeping reports, but sorting through that data can be time-consuming and inaccurate. It also creates a large delay — by the time you get the information, it may not be accurate. 

Ideally, you need a custom-built solution designed for venture capitalists. When choosing a venture capital reporting system, look for the following features. 

Cloud-Based

With a cloud-based venture capital reporting system, you can check your reports from anywhere. Your investees can also upload data from anywhere. This convenience is essential, especially when you're traveling to conferences or to meet with new start-ups. 

When you opt for a cloud-based system, you also save money on hardware and IT management costs. Rather than having to invest in hard drives for data storage and servers to process information, you can store everything in the cloud. The provider of the system will take care of upgrades, patches, and IT issues. 

Real-Time Reporting

Additionally, a cloud-based system will upload your investee's entries immediately. If one of your investors enters financial details, you will be able to see it immediately through your portal into the reporting system. This real-time reporting is essential if you want to keep a careful eye on your investments. 

Branded

To showcase your professionalism, you may want to look for a white-labeled venture capital reporting system. This allows you to customize the branding of the reporting system with your venture capital fund's details. When your clients sign into the system, they see your fund's name. They don't see another brand that's unrelated to your mission. 

Dynamic Reporting

The information you need about your investees will vary based on your specific needs at the time you're creating the report. With dynamic reporting, you can customize the reports that you create. You don't have to rely on standard accounting reports such as profit and loss or balance sheet reports. 

Instead, you can create reports that make sense for you as an investor. You can track revenue growth, look at the effects of additional funding, and make predictions about upcoming changes. You can also look at a broad overview, and then, use the reporting system to drill down for more details. 

Scalable

As your venture capital fund becomes more and more successful, you will take on new clients. Your reporting system needs to be able to handle them. Scalability makes this possible.   

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