#71 Data-Driven VC & Impact on Fund Finance

Hi Everyone! đź‘‹ Welcome to the new members of @TheFundCFO crew! We recently released our New VC Fund Playbook + Model Downloads @ Streamlined.Fund! Re-linking our top 2023 posts: #67 Top VC CFO Posts & References of April, #65: WTF is Going On in VC (+ New Fund Model Data) & #60 Emerging VC Fund Tech Stacks!

Every Tuesday/Thursday, we bring you actionable tools, real-world experiences, and insider insights for #VC CFOs/Finance Pros and fund managers, #LP investors, and general industry enthusiasts/people who want to learn :).

“Imperfect action is better than perfect inaction.” -Harry S. Truman

Data-Driven VC & Impact on Fund Finance

“VC’s are becoming more data-driven. More efficient. Supercharged by AI tools.” This is the common narrative today. But is it true? The reality is that most firms are trying. However, becoming more data-driven and efficient takes time and commitment to new tools, new processes, and execution.

Last week, Andre Retterath (Data-Driven VC) shared the Data-driven VC Landscape 2023 Report. It included great insights on the digitization in venture capital and what leading data-driven VCs are doing. Finally, it shared practical guidance w/ a tech stack overview and step-by-step guides. We highly recommend checking out this report!

Clay Norris @ shared some additional insights. "The report mentions that 84% of global VC firms want to increase their efforts and resources to become more data driven, but only 1% of those same funds have dedicated teams to achieve that goal." TLDR: hiring folks w/ experience or appetite for growth in both data-science and product matters!

Impact on fund finance: the best fund finance teams work closely with the investing and portfolio support / platform teams to clearly understand and report data to investors. As data-driven tech stacks are updated and AI tools are incorporated, close partnerships and thoughtful review processes will help drive the best results in this brave new world we’re entering.

Top Slides from the Data-driven VC Landscape 2023 Report (Link)

That’s all for today folks! Thanks for your support and spreading the word! Share this on Twitter or LinkedIn to help grow “the crew!”