What are the best real-time deal tracking metrics for Venture Capital firms?

3 Deal terms

When structuring and financing a deal, deal terms are the conditions and clauses that you agree with the founders and co-investors. These terms reflect your valuation, risk appetite, and value proposition. To measure your deal terms, you can track metrics such as pre-money and post-money valuation compared to market benchmarks and target returns, the equity stake you acquire and the dilution you face in future rounds, the type and terms of securities used (e.g. preferred shares, convertible notes or SAFE agreements), as well as the rights and protections you secure (e.g. board seats, veto powers, anti-dilution clauses or liquidation preferences). By tracking your deal terms, you can negotiate better deals, align interests with founders and co-investors, and protect both your downside and upside potential.

4 Deal performance

Deal performance is the outcome and impact of your investment on the portfolio company and your returns. It reflects your value creation, portfolio management, and exit strategy. To measure your deal performance, you can track metrics such as the revenue, profitability, growth, and market share of the portfolio company compared to projections and expectations. Additionally, you should consider follow-on funding, valuation, and milestones that affect your equity stake and returns. You should also be mindful of feedback, engagement, and satisfaction from founders and co-investors that reflect your value addition and relationship. Lastly, it’s important to explore exit opportunities, scenarios, and timing to determine realized and unrealized returns. By tracking your deal performance, you can monitor and support portfolio companies, identify any issues or risks, and maximize exit value and returns.

5 Deal analytics

Deal analytics are the tools and methods you utilize to collect, analyze, and visualize your deal tracking metrics. This enables you to access, understand, and act on your data in real time. To make use of deal analytics, you can leverage CRM systems such as Affinity, Airtable, or HubSpot to manage your deal pipeline and workflow. You can also take advantage of data platforms like PitchBook, Crunchbase, or CB Insights to access and benchmark market and industry data. Additionally, BI tools like Tableau, Power BI, or Google Data Studio can be utilized to create and share dashboards and reports. AI tools like H2O, DataRobot, or RapidMiner can be used to apply machine learning and predictive analytics to your data. With the help of deal analytics, you can enhance your deal tracking capabilities, gain insights and recommendations, and improve your decision making and performance.