Venture capital portfolio management is challenging for even the most seasoned investment professional. That’s why having the best VC portfolio management tools in your toolbox is crucial.
One of the tools we recommend is the best-in-class Oracle NetSuite ERP platform. Find out more about this solution for investment firms.
What is Portfolio Management?
Portfolio management is the process used by investors to increase and protect the value of their current investments. Proper portfolio management includes the execution of information analysis, resource commitment, and smart decision-making.
Portfolio management consists of several key factors:
- Risk Profiling: Understanding how long it will take to see a return on investment is essential for investors when setting up a portfolio management strategy. Knowing where and how to place money is critical to building a solid return.
- Oversight and Market Research: Being up-to-date on the current happenings of the market is necessary when looking for a solid return. Real-time information is essential when investing in different industries. The proper research helps investors make smart initial investments.
- Exit Strategy: Having an exit strategy is essential to support the future outcome of your investments. This approach will help you mitigate risk and stay on top of all potential outcomes of your investment.
Challenges in Portfolio Management
Some challenges that investment firms face with portfolio management include productivity gaps, which can result from insufficient task automation. Without a reliable system, portfolio management can fall behind, resulting in lower returns.
Collaboration and communication also highly affect portfolio management. If your firm does not have strong visibility into project-related data, your team will be unable to keep up with current market trends.
- Low Productivity: This can result from a lack of data visibility. The result is wasting valuable time that will keep your business from succeeding.
- Poor Visibility: Having the proper tools to help increase visibility will help keep your firm afloat and ensure your team stays on top of portfolio performance.
- Poor Communication: Not having proper communication throughout your firm will result in insufficient productivity. Open, clear communication is essential for a productive firm.
Having the proper tools at your disposal, such as the NetSuite ERP platform, will support your portfolio management efforts. Combined with the expertise at Finlyte, we offer a complete solution called ION that supports the needs of investment firms.
Finlyte ION: Your Go-To VC Portfolio Management Tool
Finlyte ION is geared toward the needs of investment firms managing venture capital portfolios. Consider these built-in features utilizing the NetSuite platform:
- Deal relationship management
- Data aggregations and data collection
- Portfolio reporting
- Portfolio benchmarking
- Cash management
Using these features, Finlyte will help your firm save time and money. With one system to host all of your data, you can easily access investment information from anywhere. With real-time data and reporting, Finlyte helps you stay on top of your investment needs.
Contact us today to schedule a consultation. Let’s discuss our dedicated solution that leverages the power of NetSuite for investment firms.