Venture Capital digitalization trends: effective applications and their features

Venture companies face a large volume of tasks and the need to make decisions quickly daily, which is due to the specifics of such companies. Some tasks require a quick response with only employees. For others, it is necessary to select a tool from the technology field that can significantly improve the company's efficiency and avoid possible risks. Conventionally, they can be divided into websites and mobile applications, which equally solve the tasks set by the company. There can be many such problems because there is the factor of unpredictability, which a company must take into account when organizing the workflow of the whole team.

As a technology service provider, we have experience working with venture capital companies and know their challenges. We have compiled a list of the main ones that can be solved with a mobile app:

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• Lack of information 

Venture capital funds often need more information about potential projects, industries, and trends. Finding potential projects is a responsible task that takes a lot of time. And knowing industries and trends will help a company stay one step ahead of its competitors and run its business more efficiently. Therefore, developing a mobile application can help collect and process a large amount of data quickly and efficiently, allowing the fund to make informed investment decisions. 

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• Slow decision-making process

The decision-making process in venture capital funds can be slow and time-consuming. That is due to the slow pace of information gathering, analysis, and drawing conclusions based on the data. Venture capital funds have a tremendous amount of internal information. Analyzing it manually requires a considerable amount of time and people, which slows down the overall pace of the company. In this case, developing a mobile application will help automate the process of collecting and processing information, speeding up the decision-making process and helping reduce the time and money spent on this work. 

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• Ineffective portfolio management

Venture capital firms have a lot of investments, and managing a portfolio can be a daunting task. You need to consider the total number of projects, their dynamics, and all changes to react quickly if necessary. Automating these processes will make it easier for a company to manage its business and take on new projects. In this case, you need an application that will track and analyze the effectiveness of each project in the portfolio and track its dynamics to help the company manage it more efficiently.

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• Limited access to investors

Venture capital funds may need more access to potential investors and partners. Each new project requires significant investments. Therefore, venture capital funds must attract reliable funding sources. But this process also requires time and labor to analyze and select investors interested in a long-term cooperation. The app's development will help funds reach more potential investors, and partners will expand their circle of contacts.

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The latest trends in mobile apps for investors and venture capitalists

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Ventures are directly related to investing in promising startups and, accordingly, in cutting-edge technology. To keep up with the times, tech-savvy investors are integrating mobile apps into the workflow of VCs. 

Typically, these applications include functionality to manage and track portfolio financials, manage business contacts and communications, analyze data, and predict investment success. Moreover, they can provide access to experts and industry leaders for advice and mentorship, which can help accelerate the development of startups and increase their chances of future success.

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Here are examples of mobile apps used by VCs mostly:

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• Mobile applications for productivity & collaboration

Business is only complete with communication with colleagues and partners. Many applications help to establish and maintain communication between all participants in business processes. They improve communication within the team, help receive timely information, and also help to strengthen business relationships with partners and clients. And that can increase efficiency and lead to new opportunities for venture-backed businesses. They can also help companies solve problems such as a lack of information about potential projects and investment news. 

The main objectives of such applications are to simplify the workflow as much as possible, to significantly reduce the number of emails for more critical issues, to automate the processes of searching and analyzing potential startups, and to create an environment for interaction between investors and entrepreneurs.

Usually, such applications include essential functions such as messaging, video conferencing systems, and social networks for professional communication.

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• Networking mobile applications

These apps typically serve as a platform to connect entrepreneurs, investors, and other stakeholders in the startup ecosystem. The main problem they solve is expanding the circle of investors and partners for the long term.

The main tasks of such applications are to provide users with a platform to communicate with others involved in the investment process, facilitate funding opportunities, and support the growth of innovative companies.

Talking about the specific functionality of such applications, we can include the basic set, such as profile and networking creation, according to users' business needs, event management by investment interests, content sharing, tracking investment portfolio progress with analytics and metrics, and protecting confidential user information.

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• CRM & Automation mobile applications

This type of application is designed to optimize and automate sales, marketing, and customer service processes. They are of great help to companies when there is a problem with the automation of internal processes, such as investment portfolio management or information collection and processing. 

The main tasks of such applications are to optimize and automate sales, marketing, and customer service processes, improve efficiency and productivity, and provide information for data-driven decision-making.

From the general functionality, we can highlight the following: the ability to manage leads and information about them, automation of such tasks as sending emails and scheduling meetings, automation of marketing tasks, automation of customer service tasks (case management, chatbot support), the ability to track sales performance, the ability to integrate with other tools and platforms that are used by venture capital companies.

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• Contacts Management mobile applications

These applications help users organize and manage their contacts, including customers, investors, partners, and other stakeholders. They will help companies that have certain problems with collecting and processing information about potential investors, as well as do not have an established automated process for working with partners.

The main tasks here are to help users organize and manage their contacts more effectively, improve communication and collaboration, and build stronger relationships with their network of stakeholders.

The functionality of such applications includes the ability to create and store contact information; segment their contacts based on various criteria; import and export contact lists from other tools and platforms; track communication with each contact, including emails, phone calls, and meetings; set reminders and receive notifications about follow-up tasks and collaborate with other team members in contact management.

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• Company Research mobile applications

Venture research applications are designed to help users research and analyze potential investment opportunities. In other words, to help find new investment sources and opportunities for promising projects. If a company needs to invest in current projects or has the plan to expand investment capital in the future, an app to find such potential opportunities will be an urgent need.

The main tasks are to help users make informed investment decisions by providing access to detailed information and insights into potential investment opportunities.

The functionality of such applications covers the following list: the ability to access a database of companies that meet their investment criteria; select companies by various measures, such as stage of funding, revenue, and market size; conduct market research on specific industries and trends to help inform their investment decisions; and analyze the competitive landscape for each company; manage their investment portfolio, including tracking performance, monitoring news and events, and analyzing trends; users also can collaborate with other team members when researching companies, such as sharing notes and opinions.

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Summary

Each venture capital firm is unique and has different goals, so venture capital software reflects the additional functionality built into it from the beginning. The key takeaway is that mobile apps and their customized functionality help automate the collection of investment market information, attracting funding sources through new partners, creating financial reports, and displaying them conveniently for the company. 

As the investing world becomes increasingly digital, apps can help venture capitalists do their day-to-day work optimally. There is also a high demand for mobile apps and other digital tools to minimize repetitive tasks, increase productivity and streamline the deal-making process.

All this is the basis for the company's effective functioning, and the data collected by the program is the basis for making investment decisions.

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