How Arion collects KPIs from 85% of its portfolio companies with Datasset
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Jacques Attali is a writer, futurologist and President of Attali Associates, a consulting firm founded in 1994, supporting strategic decision-making for public and private leaders.
10 years ago, Jacques Attali decided to partner with his son Jeremie to start investing in Venture Capital. Arion was established as an independant entity two years ago, focusing on impactful investments in health, education, and the environment.
With 24 firms in its portfolio, Arion typically leads early-stage investments, ranging from €50k to €150k.
Jeremie Attali heads the office, guided by Jacques Attali’s vision and supported by a financial analyst Sarah Boumour.
Build strong operational foundations with a limited team
When Jérémie decided to accelerate investment activities in 2021 and grow his portfolio to over 20 companies, he developed a comprehensive operational strategy. This strategy focused on optimizing team dynamics, refining internal processes, and ensuring that data management was prioritized from the outset.
Building the Right Team with the Right Skills
Launching a new venture investment practice involves the challenge of assembling a team that can handle the ongoing management of the portfolio while also addressing the unpredictable demands of deal flow and due diligence. It's like finding the perfect balance between having enough hands on deck to keep up with day-to-day tasks like communicating with portfolio companies and tracking performance metrics, while still being nimble enough to handle the sudden and high-stakes evaluations of new investment opportunities. The goal is to avoid overextending or underutilizing the team, optimizing efficiency and effectiveness across these critical functions.
Adopting VC Fund Processes for a Family Office Setup
Jeremie aimed to improve transparency for stakeholders by instituting top-tier internal procedures for portfolio valuation and internal reporting. Recognizing the necessity of clear, timely portfolio data in a Family Office context, he sought to bolster trust with accurate valuations from a reliable third-party and regular portfolio updates for management. Additionally, he planned to introduce a quarterly newsletter to showcase key fund metrics like MOIC, IRR, and Fair Value growth, aligning with industry norms.
Leverage Legal and Financial Data for Portfolio Growth
Traditional storage methods fall short in terms of organization and usability, hindering effective utilization of legal and financial data.
For example:
- archiving contracts in a drive does not provide vision on contract commitments and timelines. Therefore tracking legal timelines, such as warrant acquisitions, requires a specialized tool for timely actions.
- traditional cap table spreadsheets are not compatible with active co-investor network management. Cap table digitization is necessary to properly identify partners across past deals and reach out regarding future investments opportunities.
There is significant value for a Family Office in leveraging external expertise and innovative technology to implement processes and achieve operational excellence typically associated with larger structures.
Partnering with Datasset offers a distinct advantage: the ability to alleviate the burden of time-consuming back-office tasks while entrusting them to a proficient team well-versed in Venture Capital best practices
A higher KPIs collection rate and more time to focus on investments and due diligence
Facing the imperative for enhanced data management and strategic investment oversight, Arion sought external expertise. They opted for Datasset Investor Services to handle portfolio management activities, freeing up the existing team to concentrate on deal flow and due diligence endeavors.
Datasset swiftly assumed responsibility for Arion's portfolio monitoring
The Datasset investor services team seamlessly integrated with Arion's operations, boosting efficiency and information gathering without requiring internal recruitment or training. This allowed Arion to save time and resources, enabling a rapid focus on deal flow and due diligence.
Significant progress in startup KPI collection
Datasset streamlined the startup onboarding process for swift KPI and legal document collection, tailoring communication and ensuring robust data protection measures.
Within a mere two weeks, they established direct or indirect contact with the entire portfolio, seamlessly integrating data collection through the Datasset platform.
By implementing a structured quarterly KPI collection process, Datasset achieved a 50% increase in startup reporting engagement, delivering comprehensive insights into key performance indicators for over 85% of the portfolio.
Providing Fund Dashboard and Reports to Arion's Management
Datasset conducts thorough quarterly valuation of each portfolio company, leveraging their vast Venture Capital expertise to uphold the highest industry valuation standards. These quarterly assessments include key portfolio KPIs such as MOIC and IRR providing precise insights into the portfolio's performance.
Furthermore, Datasset creates a comprehensive financial report every quarter, spotlighting main portfolio activities and outcomes. This rigorous valuation and reporting process significantly bolsters Arion's credibility and supports future investment endeavors by showcasing the fund's performance.
Leveraging Datasset platform capabilities to provide strategic insights
The Datasset platform serves as a cornerstone in enhancing Arion's decision-making capabilities and managing portfolio activities through its advanced data management capabilities.
With meticulous tracking of legal due dates and proactive alerts for vital KPIs such as cash runway, Datasset empowers Arion to swiftly address challenges and seize opportunities. This proactive approach not only streamlines operations but also fosters stronger bonds with portfolio companies by offering timely assistance.
Moreover, the digitization of cap tables facilitates seamless co-investor management Identifying potential buyers for secondary transactions., increasing Arion's liquidity & cash-out options. Through Datasset, Arion leverages data insights to optimize investment outcomes and attain superior portfolio management.
Arion's partnership with Datasset Investor Services has strengthened its venture capital operations, enhancing portfolio management and strategic decision-making. This collaboration enabled Arion’s team to focus on core investment activities, significantly boosting efficiency and portfolio growth. The case study highlights the value of integrating external expertise and cutting-edge technology to achieve investment success and operational excellence in the Venture Capital industry.