Portfolio Monitoring Best Practices
Getting regular, high quality, and actionable data from portfolio companies is important. It allows you to make better decisions, support your portfolio, share insights with portfolio company founders, report to LPs, and more.
This practice should also be highly valuable for founders. They should be able to share wins, challenges and get help from you, their stakeholder. It should only take them 3 minutes to complete (if not, either something may be wrong with the request or structurally wrong with the company).
Below are some best practices to make sure you get:
Timely information (e.g. 100% completion)
Structured data (comparing apples to apples)
Actionable insights (how can we help companies)
Timing and Cadence
⌚️Tip: Same time every period.
Set the expectation that you will be sending a request the same time every cycle. e.g. your request will be due the 20th post month or quarter end. Don't randomly switch between the 10th, the 30th, etc. Founders will not have an expectation and know they can submit whenever they want.
Luckily, Visible makes this easy for you. You'll be to set you schedule and we take care of all emails, due dates, and reminders.
We recommend the following cadences. This is 100% customizable as every fund is different.
Weekly - Accelerators in Cohort
Monthly - Pre-seed, Seed, Series A
Quarterly - Series B & Later
🔠 Tip: Less is more.
Don't send a request asking for every metric under the sun. Only get the information you truly need. If you are truly providing value back to the founders, then start small, get a rhythm and expand the data.
🔢 Tip: 5 - 15 Metrics.
Depending on how closely you work with companies, ask for 5-15 metrics and no more. If you're not taking actionable next steps based on a metric (ex: reporting to LP's, providing more hands on support) don't ask for it.
✍️ Tip: Use a metric description!
If you are asking for Burn and don't provide context, you might get 15 different variations. Should it be negative? Should it be trailing 3 months or current month? Should it include financing? Be descriptive about what you want. Here is our Metric Library that has some helpful descriptions.
🤝 Tip: How can you help?
Always make sure to use a qualitative section to see how you can best help the portfolio. Also let the founder share their wins and challenges if it makes sense!
⚠️ Tip: Notify your companies two weeks in advance.
Introducing Your Companies to Visible
As the most founder-friendly solution on the market, we ensure that requesting data is a frictionless process for founders. This means founders don't need to create an account in order for Investors to still get value out of the platform (ie: No log-in required!). For more info check out Do my companies need to create an account with Visible?
Feel free to use our Intro Copy Template to notify your companies about the adoption of Visible two weeks in advance of your first Request deadline.
All of your requests will come from you. However, with Visible you can fully white label the request emails so they come from your email and domain.
All customers get world class support. We are always happy to offer best practices, upload data, get your feedback and more. Your account advisor is always your best point of contact but always feel free to reach out to firstname.lastname@example.org