Centralise investor data.
Having all your investor data in one place where your team members can see it is one of the major benefits a CRM provides. A central database keeps your organisation on the same page, allowing users to leverage the information in every conversation they have. This is important in businesses where competition is intense, and you want to gain a competitive advantage through a personalised approach towards your investors. If all the relevant investor information is available at one's fingertips, the entire fund is prepared to communicate with each investor in the best possible way.Managing existing/Building new relationships with LPs
For VCs, most of the key wins come from a very small number of key relationships. The main question is, which relationships are the most valuable?
The most integral and highest value task of any venture capital firm will always be linked to relationship building and improving relationships with existing investors (LPs). During the COVID-19 pandemic, relationship and deal management in venture capital shifted towards relying even more heavily on technology. Building new relationships with new LPs helps your firm grow, as you rely on warm introductions as your means of building this relationship.Providing value
An investor relations CRM platform with analytics functionality directly supports investor pipeline management and data sharing with current investors. Reporting and analytics are also a way to showcase your experience and value to prospective investors.
The biggest value a CRM provides for venture capitalists is not from the volume of data recorded (even though this is also important) but from the ability to leverage relationship intelligence within the given data set. Each piece of information recorded in the CRM goes beyond the mere data point; it is a piece of a relationship. Valuable time should be spent on building and supporting those relationships, not manually entering data. Leveraging automated reminders along with the transparency that comes with an automated system enables teams that aren't together in one place to stay aligned on long-term goals for each relationship.
You're already preoccupied with large amounts of data at your disposal. This is where an automated CRM can enable you to spend more of your time where you add the most value. One of the most impactful technology initiatives for a VC firm is investing into a CRM that automatically deals with the heavy lifting needed to get the most value out of relationships.