Venture fund administration is a sometimes frustrating but always necessary aspect of managing a venture capital fund.
Like most private equity firms, your organization likely handles its administration processes in-house. While there is nothing wrong with adopting a do-it-yourself (DIY) approach to administration, you’ll eventually find yourself in need of outside support.
Have you reached this pivotal juncture yet? Let’s see if your situation matches common reasons to utilize additional resources.
When to Outsource Venture Fund Administration
From a lack of data visibility to experiencing fast growth, here are three signs to look for to know when it’s time to outsource venture fund admin processes.
1. Data Visibility Is a Persistent Pain Point
Even if your team has mastered the art of multi-tasking, it’s easy to get lost in a sea of data. Venture fund administration requires clear visibility to perform critical tasks:
- Oversee complex sets of data.
- Manage a dynamic portfolio of accounts.
- Perform various reporting tasks.
- Conduct routine asset valuations.
- Perform other duties as needed.
Unfortunately, a lack of data visibility can hinder your team’s ability to serve clients, leading to missed opportunities.
And data visibility will inevitably become a problem as your venture capital firm grows. If you are already experiencing growth, you should strongly consider optimizing your venture fund administration processes by adopting new technology.
Deploying an ERP platform such as Oracle NetSuite ERP will provide unmatched visibility. You can use the platform to manage all key venture fund administration processes, automate redundant tasks, and keep a finger on the pulse of your firm’s business.
2. Your Investment Management Company Is Growing
If your investment management company is enjoying a period of steady growth, you may want to think about proactively obtaining venture fund administration support. Why wait until these processes get out of control before optimizing your back office?
As your firm grows, it’s important to invest in new venture fund administration technologies and resources such as NetSuite ERP. Doing so will enable you to keep your momentum going and fuel continued growth. It will also increase your ability to navigate any speed bumps you encounter along the way.
3. You’re a First-Time Fund Manager
Over the years, countless fund managers have had to learn about the challenges of venture fund administration the hard way. Fortunately, you don’t have to follow in their footsteps.
If you’re relatively new to fund management, get ahead of the curve by implementing the right tools, technologies, and resources now. Upgrading your technology stack will help you in the following ways:
- Stay on top of venture fund administration.
- Increase productivity.
- Better serve your clients.
When searching for new technology for your firm, look for a proper all-in-one solution that can scale with your business and evolve as your needs change. Such a solution will deliver a strong return on investment both now and in the future.
NetSuite: The Venture Fund Administration Solution You Need
NetSuite ERP includes more than a dozen modules, each of which can be used to resolve specific business challenges and optimize mission-critical processes. The best part is NetSuite can be fully integrated into your existing technology stack, providing a seamless user experience for your team:
- Optimize your venture fund administration processes.
- Provide fund managers with access to a single source of truth to oversee capital accounts.
- Create much-needed data visibility to support the needs of all stakeholders.
- Utilize robust reporting tools to keep your clients in the loop.
Plus, when you work with the Finlyte team to implement NetSuite, you gain access to a team of experts who are capable of configuring NetSuite for your specific needs.
For example, we built a portfolio management tool for NetSuite as part of our dedicated solution for private equity and investment firms called ION.
Our investment optimization capabilities for NetSuite make us a true partner in your success. If you’re ready to resolve your company’s most significant challenges with venture fund administration and other investment-related activity, contact us today.
Schedule a consultation with our team to find support that fits your investment firm.