EUVC EUVC | Webinar VC:LP Roundtable on Data Driven Portfolio Modelling
Aug 1, 2024
Joel Larsson, Founding GP of Pale blue dot, Jon Coker from Eka Ventures, Joe Schorge of Isomer Capital, and Anubhav Srivastava, CEO of Tactyc, dive into the nuances of data-driven portfolio modeling. They discuss best practices in portfolio management, the importance of dynamic fund forecasting, and challenges linked to portfolio construction. Topics like portfolio concentration, evaluating companies, and the significance of both qualitative and quantitative metrics are explored, offering valuable insights for navigating the venture capital landscape.
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Value of Modeling
- Building a financial model helps VCs understand key inputs and their impact on the fund's performance.
- It forces VCs to make trade-offs and have thoughtful discussions about their strategy.
Model Resistance
- Some VCs initially resisted using models but later realized their value in strategic planning and partner discussions.
- Models facilitate communication and alignment, especially between GPs.
Portfolio Concentration
- While large portfolios are statistically safer, concentrated portfolios can outperform with better decision-making.
- VCs should commit to a specific strategy, whether concentrated or diversified, to avoid mediocre results.