Overview with tools, template, software, best practices and alternatives

Why do People do Reports for Venture Capitalists?

Venture Capitalists are investors who provide funds to startup business companies or give support to small businesses that wants to expand but do not have connections to public funding. These investors are eager to put their money in starting companies as they can get considerable amount of funds if the small businesses become successful.

Starting companies generate reports for venture capitalists so as to communicate information and updates to their investors. The reports provide information that pertains to the activities, performance, status, and progress of the startup company.

Small business teams that wish to open also give reports for venture capitalists so as to inform them the company’s strengths and weaknesses, which can help the investor evaluate the company’s capacity. This allows the venture capitalists to make a decision if they can proceed to their support to the starting company.

Reports for venture capitalists are also generated by business teams, so as to provide pertinent data on the starting businesses’ achievements and problems. The data help venture capitalists identify what the starting company has got since its birth, along with actual and potential problems that come along the way.

Starting businesses also write the venture capitalist report to inform their investor their business framework, which includes their plans, strategies, actions, and evaluation. Plans serve as the backbone for the team’s strategies and actions. The strategies and actions should be in line with the plans for them to be effective upon execution. Then, the team includes their evaluation if the team is able to meet the formulated goals.

How do Teams usually do Reports for Venture Capitalists?

Reports for venture capitalists include information on the activities, performance, status, and progress of a small or starting business.

Teams of small and starting business include essential information, such as the team’s activities and performance, as these help the venture capitalists identify the overall status and progress of the team and the business.

Small and starting businesses should also include information on the status of their sales on a weekly, monthly, or quarterly basis, along with the growth of the venture capitalist’s investment. This should be done in complete veracity, completeness, timeliness, and accuracy.

Since reports for venture capitalists involves the company sales and the investment returns, the team members of the starting team should also include quantitative data in the report, which can be presented using tables, graphs, charts, and diagrams. These facilitate more effective comprehension of data than just presenting them in a narrative style.

Achievements, issues, and plans are the three most common inclusions in a venture capitalist report. The accomplishments provide the team members an idea on where the team is in the market. These also motivate and inspire members of the startup business or small business to do better. The issues can be actual and potential and the team can discuss possible ways to solve and/or prevent them.

Typical questions/metrics/topics that are usually covered in a Report for Venture Capitalists

  • What is the sales status for this week?
  • How many transactions have you handled and made?
  • What are the available resources to the team?
  • What are the actual threats that you see? How are you going to solve them?
  • What are the potential problems that you foresee? How are you going to prevent them?
  • Do you have other concerns or issues?
  • What are your achievements for today?
  • What short and long term goals do you have in order to meet the company’s objectives?
  • What strategies and actions will you implement to meet the plans?
  • Were the strategies and actions previously implemented successful?
  • What are your strong and weak points when it comes to managing the team?
  • Do you see any open opportunities for improving your management skills?
  • What are the feedbacks of your subordinates on how you handle them?
  • What is the trend in your performance? What is its implication to your future performance?

Advantages & Best Practices of doing Reporting for Venture Capitalists

Reporting for venture capitalists is beneficial to the team for the following reasons.

Venture capitalist reports can serve as means of communication for the team members of a starting business or a small business. Team members can share information on almost everything about the business, such as strengths, weaknesses, opportunities, and threats. Also, team members can provide data on the team’s achievements and issues, not to mention that they can also include some details of their business plan, which includes the assessment cues, goals, actions, and evaluation.

Reporting for venture capitalist help team members to be on track on their way to the team’s goals. The reports contain updated information, which keeps the team informed on the current activities, performance, status, and progress of the team, the business, and the investor’s funds. They will be able to act immediately should there be any new or changed information.

The report can also lay down issues the team members are experiencing within a specific time period. The issues can be actual or potential. Actual issues are concerns that are currently experiencing by the team while potential issues are concerns that have the possibility to become the team’s problems in the long run. Identifying issues and including them in the report will help the team prioritize them and discuss ways to solve or prevent them.

Disadvantages & Pitfalls at doing Reporting for Venture Capitalists

Reporting for venture capitalists can be advantageous to the team in some ways, but there are also times in which it can be a disadvantage to the team.

Doing a venture capitalist report can be time consuming because it has to contain detailed, complete, and accurate information, which may consume a lot of time for gathering information and preparation. Some team members are already busy with their normal task and responsibilities and including report submission may further keep them enlisted with work. They may end up with a report that is unfinished, incomplete, or inaccurate, which may adversely affect their strategies, actions, and overall performance.

Virtual teams have members that are dispersed to various parts of the globe, with different time zones. Team members of virtual team may experience occasional trouble in submitting reports to venture capitalists due to the reports’ high reliance to a stable internet connection. In the case of virtual teams, poor and absent internet access is a big problem as this may halt the team members from sending and receiving reports to and from their teammates.

Generally, reports for venture capitalists may require spending funds, which can be advantageous for startup teams as they have to control their expenses, since the business has just started its operations. Writing reports can be added to their expenses instead of allocating the funds to other important concerns, such as funds for the team’s activities.

Why Teamreporter is great in doing Reporting for Venture Capitalists

Teamreporter is a business application that reduces the number of the team’s status meetings by utilizing automatically scheduled report mails. Small team with up to four members can use the application for free and signing up just takes up to less than a minute.

Team members can utilize Teamrpeorter to send and receive information to and from their teammates easily and with no trouble. The application will send e-mail notifications to the team members, asking them to submit essential information on their achievements, plans, and problems. Teamreporter will generate a summary of data based on the members’ reports. Teamreporte’s automated and easy to use interface is a major boost to the team’s performance.

Another benefit of using Teamreporter is its adapdability to other applications. Teamreporter can be integrated by the team with the existing applications its members are using. It can also be used with e-mails and web browsers. In addition, team members are able to change the questions and the schedule of the report mails, allowing them to function well while using Teamreporter in any workflow.

Venture capitalists themselves, along with team leaders, can also gain benefit from using Teamreporter. The application can provide them essential information on the status and progress of the team and the project, giving them complete oversight on what is happening to the group and the project. In addition, they will be able to determine the startup business’ competence to survive and grow in the market.

Learn more about Teamreporter

Teamreporter is free for small teams (up to 4 members)