Executive Minds in Venture Capital Get Social

Abstract

Investment firms always have a fair number of “bright people” in the room, but typically the diverse structure of review panels, investment restrictions, and mixture of involved portfolio executives makes knowledge transfer incredibly difficult.

The Challenge

Our client, a benchmark financial group with over 750 million in managed investment came to our team to create a solution: provide a private social network and news site that allowed portfolio company stakeholders to communicate radical market shifts that were happening on a daily basis.

How We Helped

Using a content management system and analytical integration, information was aggregated into a dashboard to provide relevant insight on mission critical topics. The core foundation was put in place under the understanding that dozens of highly trained and knowledgeable CEO’s were being faced by market conditions and new obstacles that they had not seen before.

The private network allowed peer-to-peer communication with other seasoned CEO’s facing similar challenges, knowing that like-minded lessons could be shared to avoid costly pitfalls and allowing teams to maximize unknown opportunities.

Key outcomes of the project

  • By sharing daily updates portfolio executives could reduce burn rates, allowing the portfolio to sustain longer without re-investment during the economic shift.
  • The effective exchange of intellectual property across companies brought immediate value: highly valued employees that could not be maintained at one company could find suitable homes within other portfolio assets, consultants and agencies doing work for any portfolio could have peer reviews on performance (allowing portfolio companies to benefit from outstanding shared resources or avoid bad vendors), and executives within small teams and isolated silos at the company level could communicate like-minded problems (CEO to CEO, CMO to CMO, CFO to CFO.)
  • At the investment level, valuable insight of changing market conditions allowed funding for umbrella support that any singular portfolio company could not afford alone. Investors also had the ability to learn from “crisis market events” in a quick and streamlined manner, allowing them to communicate sudden changes to other portfolio companies and isolate risk.