How does technology implementation increase the efficiency of any venture company?

May 12, 2023

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It has always remained a mystery why the overwhelming majority of venture companies - venture builders, due diligence studios, business angel groups, syndicates, funds, etc. - have been focusing for many years on working with and investing in technology projects, but very rarely use technology within their own venture company.

Moreover, despite the decline of the venture market as a whole in recent years due to obvious circumstances, there is a clear trend that startups are no longer just seeking external funding, but also external competencies in the form of venture firms that can help multiply external funding and grow even faster than during the pitching stage.

The above observations clearly underline that in the near future, on a highly competitive venture market, the advantages will belong to those companies that have digitized and, as a result, automated most of the internal processes of their operational activities, as well as implemented technologies that free up the experience and expertise of the team for even greater impact on the venture company's key metrics.

It is worthwhile mentioning however that compared to earlier listed venture companies, startup studios have an obvious advantage here above the others in terms of technology. According to some industry experts, a large share of those have been established on the basis of the software houses or venture builders who had also either partial or complete inhouse developing teams.   

How technologies are affecting for day to day routine of startup studios and venture builder today?

In general, startup studios and venture builders aim to create successful startups by combining the skills and resources of their own team of experts.

Undoubtedly, the majority of communication processes within teams, external communication management, and task tracking are now covered by a variety of CRM systems, task trackers, and other productivity tools. Based on the chosen business model, each startup studio or venture builder has its own operational activities, established processes, and its own data-aggregating base. All of these are managed by people who actually become a source of financing. So the majority of operational activities and corresponding processes can be automated.

If we consider a specific stage as an example - onboarding - which exists in almost any venture company in one form or another, we can underline that automating primary lead screening processes, the KYC procedure, and signing partnership documents can reduce the onboarding cycle by more than 50% (62% based on my experience).

Now each venture company owner can calculate how much human and financial resources will be freed up thanks to the automation of just one stage of venture company activity. Thus, the key competencies and expertise of the team and their application acquire a new, more efficient form.

Advantages from tech implementation for the process optimization

True that many startup studios have guide books and automated processes in place, some of them are constantly innovating the latter and transforming based on recent learnings. Yet not all of the venture builders give enough importance to the technology thinking that the skillful loyal team and network of investors can guarantee their success. 

By creating a technological foundation, we gain the ability to digitize the user flow of any venture company or studio. This way, we can add additional value and obtain obvious advantages such as:

  1. Improving process efficiency allows studio employees to focus on more important tasks, increase work efficiency, and improve productivity, which can reduce development and launch time for products.
  2. Improving project management can help improve resource management and reduce the risk of project delays.
  3. Improving analytics and decision-making can help improve decision-making and predict industry trends.

Overall, digitizing internal processes can help accelerate product development and launch, as well as increase customer satisfaction levels.

Why do you need to implement technology already now?

One of the success factors according to many founders of startup studios and industry experts is the processes of building ventures hence the automation of processes can enhance that efficiency.

Implementing technology can provide a competitive advantage to any venture company. It can help companies offer new products or services, improve operational efficiency, or reduce costs. In today's fast-paced business environment, companies that fail to adopt new technologies risk falling behind their competitors.

Technology can also help a venture company scale its operations more easily by automating processes, reducing manual labor, and streamlining workflows. This can lead to faster growth and better performance, as the company is better equipped to handle increased demand.

Technology like data analytics can provide valuable insights into a venture studio's operations, customers, and market trends, allowing for informed decisions and quick response to changes in the business environment.

In today's digital age, many job seekers are looking for companies that embrace technology and innovation. Implementing technology can help a venture studio attract and retain top talent by offering a dynamic and forward-thinking work environment.

Finally, implementing technology can help a venture studio stay ahead of the curve and position itself for long-term success.

About the Author

Denis Spirin

Denis Spirin is an international serial entrepreneur and has more than 10 projects that have gone from idea to market launch, fundraising and scaling. One of the projects was successfully sold to an international venture capital fund, where Denis holds the CPO position and his main goal is to integrate technologies and automate processes.

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