Outsourcing To Relieve The Pressure Of The Evaluation Process
It takes a discerning VC to determine whether a surfaced lead will bring in sufficient profit at a tolerable risk. Funding innovation and invention is exciting, yes, but it’s imperative VCs have the time and resources to decide whether the gung-ho entrepreneur they’ve spotted is more visionary, than nary a vision.
Judge a VC on the company (or venture) they keep
‘Rome wasn’t built in a day.’
Or, in VC terms:
‘A lasting, profitable portfolio is crafted one contract at a time.’
Kicking the evaluation phase off is a ‘first read’ to decide whether a deal aligns with the VC’s portfolio strategy. Once this is determined, the phase is set into motion:
Initial meetings are set up to answer preliminary questions from both sides and gauge the lead’s resources and business framework.
Basic due diligence establishes whether there’s a market for the lead’s product or service, forecasts competitively, and conducts a high-level financial audit.
Deep due diligence is an in-depth analysis of an organization’s processes and operations, capped off by an investment memorandum for approval by all partners involved.
The above presents an intricate process as relatively straightforward. But what those bullet points don’t take into account is the mammoth organizational effort behind the scenes. With so many disparate elements needing to be brought together, the effort is often time-consuming and a heavy drain on resources. This is not to mention the equally hungry competitors who are circling the very same deal — adversaries that may have enlisted outside assistance to take the smaller tasks from their shoulders.
The tricks of the trade for speed of action
Tech innovation and digital connectivity have thrown the doors wide open for ambitious entrepreneurs, making for a competitive environment that’s fit to burst with astute minds and inventive ideas. Not ones to sit back when investment opportunity abounds, VCs have adapted to keep up with the plethora of prospects riding the digital wave.
From deal flow automation to data segmentation and calendar management, what used to take venture capitalists hours, or even days, is now accomplished with ingenious software and networking solutions. But for all of our reliance on technology, slow processes and operational bottlenecks still hamper the thrill of the unicorn chase. Because of this, there is still space for that which cannot be replaced by binary or AI (yet) — the human mind and its ability to plan, troubleshoot, and act.
Simplify the evaluation phase with deal flow delegation
There is a simpler way to offload the stresses of daily operations. Zirtual’s discreet, college-educated Virtual Assistants (VAs) will streamline the deal flow process by taking on the role of both executive and personal assistant. Your VA will handle such non-critical jobs as to-do tasks, documentation follow-ups, and email management. Our VAs have been vetted by a rigorous, multi-step process which ensures they’re able to hit the ground running with no exhaustive training needed.
Learn more about the services Zirtual provides and how they can help you.