Portfolio Management 101

for angel investors, fund managers, and limited partners

Over the years, I have simultaneously been a managing director with Silicon Valley Bank, a limited partner, an advisor, and a mentor. When I was with an operator in a fund, we were trying to manage it all with a combination of spreadsheets, Affinity, Google products, AngelList, Trello, and email, but things started falling through the cracks.

We started missing deals, missing economics that fit our thesis, and dropping the ball with helping founders — the core of our mission.

And it’s no wonder. Proper portfolio management has so many moving pieces.

Including:

  1. Due diligence on not just individual companies, but also on the industry as a whole. Performing diligence and the process of selecting and vetting investments can be time-consuming and difficult to manage. Investors need a tool that provides key information quickly and efficiently so they can make informed decisions based on past investments and experience.
  2. Track the flow of inbound and outbound referrals. VC and investing runs on network. It’s so important to track the deals that come across your desk, including the ones you share with others.
  3. Make deals and commit resources. Once you’ve done your due diligence, it’s time to make deals and keep track of your resources and capital, whether you’re a fund manager or an individual angel investor. Understanding your capital calls, how much is left and what you committed to is paramount as you continue to make more investments.
  4. Track metrics and analyze returns. How well are you doing? Not only can you use this data — like financials, cash position, KPIs, and ownership — to evaluate your investments, but a portfolio management tool can help you analyze returns and adjust your investment strategy. If you’re a VC fund manager, like how much reserve to save for follow on investments for breakout companies.
  5. Manage workflows over time. Private market investors need a tool to help them through the whole life cycle of an investment, from investing to providing oversight to increase the value of investments, to follow on checks and exits.
Photo by Scott Graham on Unsplash

I was frustrated that I couldn’t find a tool that fit all of my needs as an angel, LP, and fund manager. That’s why I built fiifi.co.

  1. Research and due diligence: we’ve partnered with Crunchbase and LinkedIn to make due diligence easy
  2. Deal flow: manage your deal flow funnel and automatically track inbound and outbound deals.
  3. Deals & capital: fiifi is built on workspaces so that you can manage the total AUM across all of your investments in one dashboard. See how your capital has been allocated as a direct investor, LP, or GP.
  4. Metrics & returns: Monitor and report on your portfolio in real-time, gaining insights proactively. Track KPIs over time and easily see your company performance by sector, stage, geography, and status.
  5. Workflow management: easily collaborate and manage your investment process with customized workflows and checklists. fiifi has automatic alerts and alarms to help you manage fund changes, capital calls, maturation dates, taxation, and pro rata.

Join us on fiifi — the portfolio management tool for private market investors. Sign up today at fiifi.co and get a free 15 minute demo.

Hi! Thanks for reading. I’m Theron, a founder, investor, and past banker. I’ve had the opportunity to work with some great companies and brands over the last 15 years like Pivotal Software and Silicon Valley Bank.

I like to write about my experiences as a founder, mentor, investor in scaling enterprise startups.

I hope my articles help you to avoid and learn from my mistakes, as well as gain knowledge from my wins.

Follow me at @theron on Twitter and LinkedIn and please feel free to reach out to theron@fiifi.co.

Keep shipping product and never look back!

Thanks to those that have helped craft and publish this post.

The Founder VC; founder/CEO at fiifi.co; past Managing Director @SVB_Financial #startups, Investor at Acceleprise

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store