#86 VC Fund Stacks Are Back!

Stack insights from us and 20+ VC managers.

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

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 industry enthusiasts/people who want to learn :). As a reminder:

  • Tuesday: insights + interviews. Free for everybody.

  • Thursday: deeper dives on CFO/COO strategy + more insights from LPs/GPs + interpretation of what it all means (based on decades of experience). Exclusive to Paid subscribers (most of whom expense these insights).

“Do not let making a living prevent you from making a life.” -John Wooden

Emerging VC Fund Tech, Data & Efficiency Stacks

“Emerging VC back-office complexity is a hell of a thing. The problem for most new managers is that there is an absence of what 'good' looks like when selecting fund admin, tax, and audit partners.” -Eric Bahn, The Hustle Fund

We’ve written a lot (and have a lot of experience implementing) different VC fund stacks. What works well? What would we never do again? You can read more in #60 Emerging VC Fund Tech Stacks & #61 VC CFO Data & Efficiency Stack.

Recently, we participated in a VC fund stack survey with our friends at Weekend Fund where they wrote the following about fund managers:

“How can they maximize their chances of building a successful fund? The key is in their process. That is in their control. And the tools they use are often a big part of that. This is especially true for emerging managers and small funds where automation and tools can give small teams leverage.”

More from Weekend Fund Survey - VC Fund Stacks Unpacked

In the Weekend Fund / Signature Block VC Fund Stacks post, they took the following approach (w/ takeaways): we asked 20 investors about their fund stack – the tools they use to source startups, manage deal flow, diligence companies, communicate with their LPs, and more. We also teamed up with some of the tools mentioned to secure deals for Signature Block subscribers. If you only have a few minutes, here are some takeaways to consider on VC fund stacks: 

  • The strategy should define the stack. The diversity in tools below reflects the diversity in fund strategies. Tools should be in service of a specific goal or strategy that leverages the team’s unique strengths. For example, Yohei from Untapped Ventures has a unique product and engineering background that informs his developer tools-heavy tool selection.

  • Efficiency gains come from combining tools into bespoke stacks and workflows. Integrations and automation is the key. Many fund managers use Zapier, native integrations, and APIs to connect their stack and streamline their workflows.

  • Tools don’t just save time, but they also help enforce processes. Encoding processes in tools ensures that steps aren’t missed. For example, at Weekend Fund we use Front to co-write email drafts which pop into our inbox and ensure important communications aren’t missed.

Insights Into Our Fund Stack at Chapter One

Within the most, here are some insights into the stack we use at Chapter One:

  • WhatsApp: “We use this for quick, informal LP communication.”

  • Cabal: “User-friendly tool for sending updates to our LPs and founders. Tracks engagement.”

  • Mailchimp: “We use Mailchimp to send monthly founder updates and newsletters.”

  • Superhuman: “Productivity tool to enhance email management. Superhuman provides users with a faster, streamlined, and more efficient email experience.”

  • Notion: “We use Notion to take meeting notes, brainstorm roadmaps, store founder resources and more across the team. Also integrated with our Affinity deal tracker.”

  • Jira: “Our project management system.”

  • DocSend: “We use Docsend to track & share important presentations, including our data room. Unique permissions and analytics.”

  • Tome: “Presentation software for our team meetings, AI-powered and quickly growing.”

  • Zapier: “We have used Zapier for integrations with Notion, Affinity, and other tools. The goal is to always increase efficiency.”

  • Affinity: “We use to track deal flow (inbound pitches, first meetings, passes & more) and communication with LPs. Connectivity with LinkedIn and email is key.”

  • AngelList: “One of our fund administrators and SPV management. Streamlines SPVs, standardizes documents for certain types of funds.”

  • Crunchbase: “Data tool that helps us gain insights on companies and track market trends.”

  • LinkedIn: “We use a premium version for targeted sourcing of companies.”

  • Pitchbook: “Data tool that helps us gain insights on companies and track market trends.”

  • Bill.com: “Bill payment platform that streamlines vendor management, payments, and tracks vendor expenses.”

  • Ramp: “Company credit cards, reimbursements, spend management.”

  • 1Password: “Our secure password storage platform with multiple levels of access.”

  • Box: “File storage for all company documents. Robust security and sharing preferences.”

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!”