by Erwan COATNOAN DE KERDU
Intangible Capital Value
VC Labs : Structuring General Partners to convince Limited Partners
The operating partner is a professional who supports business leaders in their development. He puts his expertise and network at their disposal to help them achieve their objectives.
The missions of an operating partner may vary depending on the company and its needs.
They may include:
- Strategic support: the operating partner helps the manager define the company’s strategy, implement action plans and monitor them.
- Operational support: the operating partner provides expertise in specific areas, such as marketing, sales, finance or production.
- Network development: the operating partner connects the manager with potential partners, such as investors, customers or suppliers.
The operating partner is generally an experienced professional who has a solid understanding of business. He often has experience in business management or advising managers.
The profession of operating partner is booming, as companies are increasingly looking for professionals who can support them in their growth.
Here are some examples of specific missions that an operating partner can accomplish:
- Help a company launch a new product or service
- Support a company in its international expansion
- Help a company to restructure
- Help a company deal with a crisis
The operating partner is a valuable partner for business leaders. It can help them achieve their goals and grow their business sustainably.
General ‘s priorities partner venture capital:
- Recruit and manage a high-performance team
- Develop a clear investment strategy
- Perform Thorough Due Diligence
- Build strong relationships with entrepreneurs
- Provide strategic and operational support to portfolio companies
- Manage the investment portfolio effectively
- Communicate with investors and stakeholders
- Develop and implement a strong company culture
- Keep up to date with the latest venture capital trends
- Contribute to the venture capital ecosystem
- Develop your own career and reputation
- Have a positive impact on the world
1. Develop a solid investment strategy.
The general partner must define the sectors and stages of investment in which it wishes to invest. He must also develop a process for evaluating investment opportunities that will allow him to make informed decisions.
2. Build a strong network of relationships.
The general partner must meet entrepreneurs, investors and other professionals from the world of technology and innovation. This network will allow it to identify investment opportunities and find partners for its investments.
3. Perform thorough due diligence.
Before investing in a company, the general partner must conduct thorough due diligence to ensure it understands the risks and opportunities of the investment. This due diligence typically includes financial analysis, market analysis, and management team assessment.
4. Build close relationships with entrepreneurs.
The general partner must be a strategic partner for entrepreneurs. It must help them grow their business and succeed.
5. Manage the investment portfolio.
The general partner must monitor the development of the companies in its portfolio and take the necessary measures to ensure their success. These measures may include advice to entrepreneurs, financial support and the introduction of new investors.
6. Promote investments.
The general partner must promote the investments of its fund to potential investors. He must present them with investment opportunities and explain why they are interesting.
7. Manage investor relations.
The general partner must maintain strong relationships with its fund’s investors. He must keep them informed of the progress of investments and answer their questions.
8. Manage the finances of the fund.
The general partner must manage the finances of the fund responsibly. It must ensure that the fund has the necessary resources to invest in new companies.
9. Develop the fund brand.
The general partner must develop the fund’s brand in order to attract new investors and promote the fund’s investments.
10. Keep abreast of market trends.
The general partner must keep abreast of market trends in technology and innovation. This will enable him to make informed investment decisions.
11. Learn and grow.
The general partner must be a continuous learner. He must keep up to date with the latest innovations and market trends.
12. Have a long-term vision.
The general partner must have a long-term vision for the success of their fund. He must understand that venture capital investments take time to bear fruit.
These priorities are essential for the success of a general partner venture capital.
Intangible Capital Value’s experience with more than 9,000 innovative companies in several countries in several languages with SaaS software that digitalizes the profession of operating partner and allows the general objectives to be met partner to convince the LP is a unique and valuable experience.
Intangible Capital Value is a consulting company specializing in the valuation of intangible assets. She developed SaaS software that allows operating partners to digitalize their business and meet general objectives. partner to convince the LP.
This software allows operating partners to:
- Manage their investment portfolio effectively
- Monitor performance of portfolio companies
- Make informed investment decisions
- Communicate with investors and stakeholders
The software is available in multiple languages and is used by operating partners around the world.
Here are some examples of how Intangible Capital Value software can help operating partners meet general objectives. partner to convince the LP:
- Investment portfolio management: The software allows operating partners to monitor the performance of their investments in real time. This allows them to make informed decisions about which investments to keep, sell or refinance.
- Monitoring portfolio company performance: The software allows operating partners to collect and analyze data on portfolio company performance. This allows them to monitor the evolution of the value of these companies and justify their investments to LPs.
- Informed investment decision making: The software allows operating partners to access data and analysis across sectors, markets and companies. This allows them to make more informed and profitable investment decisions.
- Communication with investors and stakeholders: The software allows operating partners to communicate effectively with investors and stakeholders. This allows them to justify their investments and demonstrate the added value they bring to portfolio companies.
6 points to secure an LP’s investment and convince them:
1. Tracking KPIs
LPs are primarily interested in the performance of the companies in which they invest. It is therefore essential to monitor the key KPIs of these companies in a rigorous and transparent manner. Key KPIs can include metrics like revenue growth, profit margin, customer satisfaction, etc.
LPs often use financial ratios to evaluate company performance. It is therefore important to understand these ratios and ensure that the companies you invest in have healthy ratios.
3. Activation of go-to-market acceleration
Go-to- market (GTM) is the process by which a company markets its products or services. LPs look for companies that have a strong GTM and are able to generate revenue quickly.
4. Forecasts to optimize
LPs appreciate investors who take the time to make accurate forecasts. These forecasts can help LPs assess companies’ growth potential and make informed investment decisions.
5. Structuring businesses
LPs look for companies that are well structured and have a solid business model. They also like companies that have an experienced and knowledgeable management team.
6. Regular communication
LPs want to be kept informed about the performance of the companies in which they invest. It is therefore important to communicate regularly with them and provide them with accurate and up-to-date information.
Here are some concrete examples of how you can implement these points to secure an LP’s investment:
- KPI Tracking: You can use KPI tracking software to collect and analyze performance data from the companies in which you invest. You can also set up regular meetings with companies’ management teams to discuss their performance.
- Ratios: You can consult financial experts to help you understand financial ratios and evaluate business performance. You can also set up a financial dashboard to track the ratios of the companies you invest in.
- Go-to- market activation acceleration : You can help businesses develop their GTM strategy by providing guidance and resources. You can also set up training programs for companies’ sales and marketing teams.
- Forecast to Optimize: You can work with business management teams to develop accurate forecasts. You can also use predictive analytics tools to help businesses identify growth opportunities.
- Structuring businesses: You can help businesses put strong processes and systems in place. You can also work with company management teams to develop a strong business model.
- Regular communication: You can set up a regular communication schedule with LPs. You can also use communication tools like video calls, emails, and reports to communicate with LPs.
By following these points, you can increase your chances of securing an LP’s investment and convincing them that your fund is a solid investment.