Venture Capital (VC) firms are essential for the startup ecosystem in any country. Startups with the potential to grow might only survive with VC firms. VC companies actively offer funds and strategic support to early-stage and high-potential firms. Since early-stage companies or startups have yet to have a proven track record, most institutions refrain from offering funds. It is where VC firms come into the picture for funding. VC firms are willing to take high risks by investing in startups and early-stage firms.
VC firms offer end-to-end support to seed-stage, early-stage, later-stage, and pre-IPO-stage firms. Some VC firms are also involved in distressed or turnaround investments. They invest in companies experiencing financial issues to turn them around.
As you can see, VC firms are involved in high-risk investments. It is where VC firms require third-party support to make informed decisions. Several vendors offer bespoke or end-to-end support to VC firms.
Let us discuss the top three vendors offering bespoke VC services.
1. Acuity Knowledge Partners
Acuity Knowledge Partners is a well-known vendor of third-party VC Services. Most VC firms need help finding third-party support for different processes throughout the investment lifecycle. Luckily, Acuity offers end-to-end support throughout the investment lifecycle, from deal sourcing to exit strategy planning. Expert professionals from Acuity will remain with a VC firm until it closes an investment. It supports all types of VC firms, ranging from accelerators/incubators and early-stage firms to expansion-stage and late-stage firms.
Acuity Knowledge Partners have expert researchers and professionals to offer bespoke VC services. For instance, its professionals will indulge in thematic research, target screening, shortlisting, sector/subsector analysis, and other activities. These research activities are essential for deal sourcing in the venture capital landscape. Similarly, researchers can help VC firms with target evaluation through data-room analysis, competition landscaping, peer benchmarking, and business model analysis. Acuity also extends portfolio monitoring and fund-level support to VC firms.
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2. KPMG
KPMG is a popular professional services firm with branches around the world. It started as an accounting firm named “Klynveld Kraayenhof & Co.” Over the decades, KPMG has expanded from the Netherlands to different countries. It offers several professional services to VC firms, including audit, assurance, tax advisory, deal advisory, technology consulting, risk management, and cybersecurity services. VC firms can outsource some of their processes to KPMG for reduced operational costs and increased productivity.
The regulatory framework for VC firms is often rigid and complex. VC firms employ several professionals to manage the compliance status. Luckily, KPMG offers VC firms bespoke regulatory and compliance support, allowing them to focus on core competencies. Many VC firms depend on KPMC for informative thought leadership pieces. Industry reports from KPMG can offer meaningful insights related to market trends and regulatory frameworks. VC firms can also benefit from networking services offered by KPMG.
3. Harbor
Most VC firms have shifted to digital platforms for day-to-day operations. It is not plausible to survive in today’s digital era without harnessing the power of technology. It is why Harbor is considered a reputed VC services firm. Harbor offers a range of digital platforms and software solutions for VC processes. Several VC firms use its deal management platform for sourcing and workflow automation. Similarly, portfolio management tools from Harbor allow VC firms to track and manage their investments.
Digital solutions from Harbor allow VC firms to streamline their operations. Besides the tools mentioned above, Harbor also offers solutions for document management, collaboration, data security, and customization. Digital solutions offered by Harbor come with an intuitive interface to support VC professionals with different levels of expertise. You can easily use digital platforms even when you are a beginner in the venture capital industry.
Why Look for Vendors Offering Bespoke VC Services?
Here’s why firms must choose the top vendors offering VC services:
• VC firms spend a lot of money to hire researchers, analysts, writers, and other professionals for different tasks. They can save on hiring and training costs by partnering with third-party VC firms.
• VC firms can gain access to tailored solutions for different processes. A reputed vendor offering tailormade VC solutions will help increase the overall efficiency.
• A VC-support vendor can allow venture capital firms to adapt to growing needs.
• Third-party research firms publish reports that can help VC firms. Many VC firms struggle with informed decision-making. Industry reports, market insights, and metrics from a reputed vendor can help VC firms make better decisions.
• Third-party vendors offer VC firms access to a wide and global network.
Conclusion
VC firms can discover sustainable investment opportunities by partnering with third parties. They can gain access to industry reports, data insights, and expert professionals. Vendors offering VC services can help venture capital firms reduce their operations costs. Bespoke VC services ensure that companies hire fewer employees and pay less money as salary, underlining the importance of choosing a reliable vendor offering VC services.