The Technology Behind Good Capital (Part 3)
This is the first part of a multi-part series that we are sharing with our LPs through our newsletter, India Technology Review (ITR)
In our last issue, we delved into the finer details around portfolio onboarding and managing relationships with the founders we have invested in.
Today, we dive into our fundraising funnel. We’re a small investor relations team, making it all the more important to have a robust system that tracks our progress with our LPs and potential LPs.
We have 2 main pipelines for raising funds through investors in order to invest in companies: (1) LPs and (2) Co-investments & follow-on. Today we’re talking about LPs.
LPs are added to our main Investor list and assigned an “LP Placement” and “Interest” based on their relevance & likelihood of investing in Good Capital. This is how we break it down:
LP Placement: This field enables us to select whether investor records are relevant and, if so, how can their relevance be categorised.
Fund Interest: Following every interaction, their status is updated in the following format.
Weekly Investor Relations Huddle
We go through all conversations over the last week with LPs and potential LPs and capture all next steps via Asana. This huddle also serves as the sounding board to discuss appropriate next steps for every LP discussed. Additionally, based on the cadence of the different categories defined above, a pipeline review is conducted to ensure nothing falls through the cracks in remaining top of mind for our LPs.
The concatenated assignment of LP interest and Fund Placement form Categories (see below). For investors in each Category, we have a set cadence through which we decide next steps or send our quarterly communications:
Each investor in our database on Airtable is then assigned a category from the above list. This category assignment is ephemeral, as it evolves on the basis of the latest conversation.
Weekly (Co/) Investor Huddle
Our weekly Investor Huddles are dedicated to capturing and placing all investors in the appropriate buckets. These buckets determine how often we follow up with each of the LPs. In this huddle, we also assign co-investor status to the LPs. This allows us to reach out to the most appropriate investors in the 2 co-invest scenarios below:
Investors who invests alongside us in the same round, in a Special Purpose Vehicle (”SPV”) structured and managed by us.
A follow-on investor relevant to invest in future rounds of our portfolio companies.
Laying the groundwork for good partnerships
The success of our investments depends not just on the strength of the business model or the market opportunity, but also on the depth of our partnership with the founders we back. Similarly, our ability to continue investing in groundbreaking startups hinges on the trust and confidence of our LPs in our work.
In the next issue, we will delve into how we leverage our platform to help our portfolio companies raise capital, through co-investments with our LPs but also by tapping into our larger network of global VCs.
