Unlocking Opportunities for Follow-On Investment

QIC Ventures is the venture arm of the government-owned sovereign wealth fund QIC, and focuses investments on innovative Australian companies from pre-seed stage to Series C+ across different industries. With over AU$445 million under management, QIC Ventures’ investments include Go1, Gilmour Space and VALD. QIC Ventures focuses on building long-term relationships with founders and businesses that have the potential to scale globally, providing ongoing support and follow-on investment as those companies build market share.

Problem

QIC Ventures’ commitment to long-term partnerships with founders makes it important to continually assess opportunities to deepen that support. Identifying companies that are well-positioned for the next stage of growth is a key part of this process.

While the team had the ability to benchmark within its own portfolio, its companies were spread across different industries and different revenue buckets, making like-for-like comparison challenging. To supplement internal data for better comparisons, the team used publicly available information on other non-portfolio companies, collating data across a wide range of sources from public market indices to the BVP Cloud Index. However, this data was time consuming to collect, was often out-of-date, and still didn’t provide the accuracy of comparison that the team was looking for. 

“There’s always nuance in deciding whether to increase support for a company,” shared QIC Associate Hayden Wall. “Looking at growth in isolation can be misleading. Context matters – understanding how performance compares with broader market trends helps us make more informed decisions.”

Solution

Previously, QIC Ventures had been using Standard Metrics to automate their portfolio reporting process, and recognized that Standard Metrics’ recently-launched Global Benchmarking tool could solve the issue of like-for-like comparison. 

The team wanted a tool that offered an easy-to-use UI, a robust N count for comparison, and sector breakouts. Global Benchmarking – which helps firms contextualize their portfolio’s performance against over 10,000 venture-backed startups as well as slice and dice performance by industry and revenue band – met the mark. 

Using the tool’s quarterly scorecard for each company helped foster a shared understanding of performance between QIC Ventures and its portfolio companies, and the team now regularly uses Global Benchmarking in their quarterly portfolio reviews. 

Results

Using Global Benchmarking, QIC Ventures realized that one of their portfolio companies was outperforming not only the portfolio, but other startups in the same sector and revenue bands. The company ranked highly against global benchmarking, outperforming on revenue growth and gross margin, while keeping a strong net burn rate with a healthy runway.

Using this data as justification, the team added to their support of the company with a follow-on investment. This led to a new product launch at the company, and better potential return outcomes for QIC Ventures.

What’s Next

The QIC Ventures team’s positive experience with Standard Metrics’ Global Benchmarking has pushed them to find further applications. They plan to broaden the use of the tool to support valuation work, leveraging its insights to add context and confidence to their existing approach.

About Elevate Capital

Elevate Capital is an institutional venture capital fund that specifically targets investments in underrepresented entrepreneurs or those with limited regional access to capital and opportunities. With $70M in AUM, Elevate Capital is based in Portland, Oregon, and notable investments include Responsive, Hubb, and True Lark.

The Problem

Before partnering with Standard Metrics, Elevate Capital had a highly manual data collection process.

Elevate would send out requests to companies one-by-one via email, with attachments like Google Forms and Microsoft Word Documents to fill out. Companies would frequently return incomplete requests, or fail to respond at all.

“Most of the data that I was actually using wasn’t being captured on a quarter-to-quarter basis,” said Brandon Ross, Senior Associate at Elevate Capital. “There was a lot of data loss occurring, it would take our portfolio companies a long time to respond, and they often just wouldn’t respond.”

“It was a nightmare, a total nightmare,” added Managing Director Nitin Rai. “It was a manual process. It took forever. Companies didn’t respond. We were overwhelmed.”

This incomplete data also had to be manually aggregated, cleaned, and analyzed for the LP reporting process.

“In our LP reports, we have a letter from the investor, an overview of the fund, and individual tear sheets for each portfolio company,” said Benjamin Nahir, Venture Principal. “Having to go through each of those tear sheets page-by-page referencing back to data we had collected became incredibly cumbersome. It took an inordinate amount of time to complete every quarter to the point where there was low level anxiety just thinking about it.”

The Solution

Elevate Capital now relies on Standard Metrics as a provider for quarterly data collection, a source of truth for historical portfolio performance, and a tear sheet generator for LP reporting.

Instead of manual requests via outdated tools, Elevate Capital collects portfolio data via Standard Metrics (where companies can upload data via a form fill, document upload, or direct integrations with accounting providers). When companies are slow to respond, Standard Metrics reaches out on Elevate Capital’s behalf.

“I really appreciate the work that Standard Metrics puts into reaching out to founders and CFOs of our portfolio companies, and improving response rates,” said Ross. “A lot of my job in the past was spending three weeks a month bothering people and being ignored. It’s just been night and day for us.”

“I think one of the reasons I was attracted to Standard Metrics was your service component — the fact that you actually had a resource that would partner with us and essentially become the person that we needed to help our team and be readily available,” added Rai. “If you didn’t have that it would have been more difficult for us because we are a small fund with a very small team and we really needed that resource to help us.”

As a central location for portfolio company data over time, Standard Metrics also serves as a hub for internal portfolio review and analysis.

“It’s been helpful for when we’re on our team calls talking about the portfolio just being able to log into Standard Metrics and see ‘XYZ company did $2.6M this quarter, their runway is this, and so-on,’” said Ross. “Standard Metrics has been a useful reporting tool, but internally it’s also a good portfolio management tool as well.”

For LP reporting, Standard Metrics automatically populates individual tear sheets with cleaned and complete data in a visually appealing format to cut down on manual work for the Elevate Capital team. “Once the information comes in, the consistency that we can now provide to our LPs is improved,” said Ross. “Now everything is just so smooth.”

The Results

The most important result for Elevate Capital is that a process that used to take weeks now takes days with Standard Metrics.

“It takes me two days from the time that I actually have all the information to the time I’ve got the reports done, and that’s the whole process,” said Nahir. “So it’s much faster, much easier, much more reliable.”

However, there are numerous other benefits that the team enjoys, from higher response rates to better LP engagement.

“Because LPs now actually look at the report, they will ask questions,” said Ross. “Before I would send it into a void and not hear anything back. But there’s been several times where LPs are now like, ‘Oh, wow, this is a really nice report.’”

One other result, added Rai, is that Standard Metrics has helped Elevate Capital build a more financially disciplined portfolio.

“A lot of our portfolio is led by first time founders,” said Rai. “They don’t have any background in reporting and Standard Metrics gives them discipline and forces them to think about their metrics. We are a very high performing fund and I think part of it is financial discipline, with founders measuring their business by data and not by hearsay.”

Partially as a result of this discipline, Rai predicts a stronger performance across the firm in the future.

“I think fund two is going to outperform fund one,” said Rai. “And I think part of it is the orientation of the founders around business metrics, and making sure to understand that if they don’t track it, it’s not real.”

About Lux Capital

Lux Capital is a firm based in NYC and Silicon Valley with more than $5 billion in AUM, specializing in investments in the emerging science and technology sectors. Lux invests across companies of all stages and sizes: notable investments among their 200+ portfolio include Anduril, Ramp, Hugging Face, Hadrian, and Applied Intuition.

The Problem

Prior to Standard Metrics, Lux Capital handled the majority of both portfolio company data collection and portfolio review in-house manually.

In the past, Lux Capital used email to gather data. Every quarter, the team needed to test their email sends, adjust those sends to fix broken links, and update individual contacts for every portfolio company. Each of these processes required time-consuming manual work.

“We did our best to keep portfolio company contacts updated, but it was inevitable that emails would bounce back because the person no longer worked at the company, and we wouldn’t have another contact,” explained Lux Accounting Manager Bradley Gritsch. “There were times when the email would simply break and we didn’t know what was going wrong.”

There were also a variety of time-consuming processes for portfolio review, from monitoring completion rates manually via Google Sheets to copy-pasting data company-by-company into tear sheets.

The team looked at a leading competitor, but “quickly realized that the product did not do what we were hoping,” explained Gritsch. “It required the same types of actions we had to do via email, but it was less user-friendly. ”

The Solution

After a glowing review of Standard Metrics from another customer that Lux Capital trusted, the team turned our way.

With Standard Metrics, data collection has become fully automated for Lux: companies sign up for the platform and are automatically notified by Standard Metrics on when and how to share their information.

Standard Metrics also tracks completion rates and stores information about all portfolio companies in one easy-to-view spot, filterable by fund. Standard Metrics’ Excel plug-in functionality, meanwhile, helps the firm automatically sync the data they need from the platform into their custom tear sheets sans copy-paste. Standard Metrics data is also used in their quarterly reports to LPs.

“Standard Metrics is dynamic,” said Lux VP of Finance Samantha Cho. “It’s easy for us to wiggle. We can do anything: dice and slice data however we want it.”

The Results

As hoped, the team has saved significant time in data collection and portfolio review.

“Standard Metrics has cut down at least 25% of the time I spend preparing tear sheets,” said Gritsch.

“It used to take me so much time to find data in Google Sheets because I had to click the link of each company to find what I needed,” added Lux Capital CFO Segolene Scarborough. “Now with Standard Metrics, all I have to do is filter by the fund and all the companies and data points I need are in front of my eyes.”

Not only is data collection taking the Lux team less time, but more portfolio companies are responding to Lux Capital’s information requests than ever before.

“There are some bigger companies that would never respond to our emails and yet have been providing responses within Standard Metrics,” said Gritsch. “It’s not something that we expected. Now they provide information on a timely basis.”

Standard Metrics also makes portfolio data collection “more efficient for portfolio companies,” added Scarborough. “They don’t have to fill in the information multiple times, because they already do it for their other VCs that are on the platform.”

What’s Next

After seeing success with Standard Metrics, the Lux Capital team recently decided to double down and expand their contract to include Advanced Analytics, our portfolio intelligence offering that enables firms to explore, manipulate, visualize, report, and monitor their portfolio companies’ data via a focused reporting and dashboarding solution, all within our platform.

The driving force for the decision was a desire to expand usage of Standard Metrics beyond the finance team to the investment team.

“I didn’t want to wait another six months to renew,” said Scarborough. “Our general partners have asked for years to have one place to go where they can see — in one view, in one click — all of their investment data in one place. I want to show them that Standard Metrics is not just a finance team product, but an investment team product.”

While the Lux Capital team’s focus will be on increasing GP adoption of the platform over the upcoming months, continuing to improve LP reporting via Standard Metrics is also something on the team’s mind.

“Every time we think about revamping a process, we think, ‘maybe Standard Metrics can do that,’” said Scarborough. “Standard Metrics is on our mind every time.”

About TechNexus Venture Collaborative

TechNexus Venture Collaborative was founded in 2007 in Chicago as a first-of-its-kind Venture Collaborative. TechNexus empowers corporations to invest in early-stage companies and foster collaboration between the corporations and entrepreneurs. It serves as the intersection between corporate innovation and early-stage investing. TechNexus’ portfolio consists of over 150 companies and includes startups like Tonal, Harbinger Motors, Krisp AI and Scope AR.

The Problem

When we met the team in 2020, TechNexus was using multiple separate systems to manage its growing portfolio. Not only did this mean there was no single source of truth, but they also lacked a reliable way to proactively monitor company performance and health.

The TechNexus team was craving centralized data, which would help them provide better real-time support to portfolio companies and share timely data with their Corporate Partners (who serve as TechNexus’ Limited Partners). There was a growing internal sentiment that the team needed a more comprehensive solution that was easy to implement.

Starting Out: Building Relationships and Gathering Data

Ellie Davis, TechNexus’ Venture Impact Manager responsible for post-investment relations, began by focusing on fostering stronger relationships with portfolio companies and setting up a system to track key performance data.

The team’s initial efforts were simply centered on visiting companies and building trust so the Portfolio Companies would be comfortable sharing more data points than they previously provided. While efforts to build stronger relationships were successful, the data gathered was still inconsistent, and the team knew they needed a more effective solution in order to scale with their growing portfolio.

Finding a Better Approach

TechNexus sought a tool that was both practical and respectful of founders’ time. They needed a system that could streamline data collection without being intrusive or burdening their portfolio companies. According to TechNexus, “It felt like Standard Metrics was a system built with that in mind. We didn’t want to micromanage; we wanted to be better investors and offer more proactive support to our portfolio companies.”

The Solution: Standard Metrics Comes on Board

The implementation of Standard Metrics marked a turning point for TechNexus. The platform provided a centralized system for tracking both investment and portfolio data. This change brought about several key benefits:

• Streamlined Tech Stack: By integrating Standard Metrics, TechNexus was able to consolidate multiple systems into a single source of truth. This not only simplified their tech stack but also improved efficiency across portfolio management and reporting.
• Enhanced Portfolio Communication: TechNexus saw a significant increase in portfolio company engagement, with response rates rising from 25% to 70%. Additionally, there was a 2.5x increase in the amount of data individual companies were sending, all achieved with minimal onboarding effort.
• Improved Investment Decisions: With accurate, up-to-date data, TechNexus was able to make better-informed investment decisions. The centralized data enabled more proactive conversations with portfolio companies and facilitated deeper insights into their performance. Having a central source of truth for portfolio company data has also transformed the way TechNexus performs their diligence process.
• Strengthened Partner Reporting and Trust: The enhanced data visibility and reporting capabilities have significantly improved TechNexus’s ability to provide comprehensive updates to corporate partners (LPs), strengthening trust and fostering strong investor relationships.

The Result: Better Data, Better Relationships

Today, TechNexus manages over 150 portfolio companies and continues to benefit from the improved data and insights provided by Standard Metrics. As Ellie Davis reflects, “I don’t look at this as software; I look at it as an extension of my team.”

8VC is a venture capital firm founded in 2015 by Joe Lonsdale focused on investing in early stage technology companies that are transforming their respective industries. With over $3.6 billion under management, 8VC has invested in some of the fastest growing companies including Palantir, Wish, Oculus and Deliverr. 8VC’s investment thesis bleeds into its own firm’s operations where it leverages technology to optimize workflows, eliminate inefficiencies and improve communication.

The Problem

8VC has relied on legacy software to manage their investor relations. This has created numerous operational inefficiencies throughout the firm.

Manual and Time-consuming Information Collection

8VC employees spend over 50 hours per quarter sending out individual information requests to their 100+ portfolio companies. It can take over a month for these companies to gather this information and send it back to 8VC. Because of this, 8VC wastes more time chasing after information rather than doing what they do best: helping their portfolio companies grow and scale.

Inconsistent Data Sources

The data that 8VC receives is often inconsistent and unorganized. There are hundreds of spreadsheets, emails and pdfs spread over multiple different sources each with their own naming conventions, making this information extremely difficult to track. As a result, employees are spending hours scrambling to find data and relevant information where time-sensitivity makes a big impact.

Managing Portfolio Data at Scale

As 8VC continues to grow it becomes increasingly difficult to manage its portfolio companies and give them the individual attention they require. Staying on top of company data, conducting deep analysis and recalling information when required becomes a challenge. Without a proper system in place, it is not only hard to track portfolio progress, but also the own firms progress over time, which for 8VC is an integral part of their operations.

The Solution

Standard Metrics transformed 8VC’s operations by automating manual workflows and creating a centralized data platform in which 8VC could effectively manage and track their portfolio companies.

Automated Information Collection and Management

Instead of re-creating individual information requests each quarter, 8VC now uses templates to send out recurring requests to its portfolio companies. Standard Metrics automatically tracks their progress and follows up with companies on outstanding requests, saving 8VC the time and hassle of managing over +100 information requests. Furthermore, any documents submitted by the company are filed and stored within their respective dashboard. Automating these processes helped reduce time spent on information collection and management by 95%.

Data Centralization

Standard Metrics’ centralized dashboard makes financial documents easily accessible across the firm, eliminating the need to sift through spreadsheets to find a single metric. PDFs, emails and spreadsheets with different naming conventions are standardized so that files are easily searchable. By centralizing and standardizing financial data, Standard Metrics brings more transparency and clarity around portfolio company health and performance. This allows 8VC to gain a better understanding of their businesses and offer more relevant advice and help.

Building Scalable Infrastructure

More than automation and workflow optimization, Standard Metrics offers 8VC a system that grows with the firm. With all of their company, bank and firm data in one place, 8VC can fully grow and scale its operations without having to worry about how it will manage all its information. As the firm increases its portfolio size, 8VC can easily add company data, conduct deeper analysis and quickly retrieve information, and with access to historical financial data and institutional knowledge, it becomes easier to onboard new members as the firm grows.

Results

8VC’s switch to Standard Metrics transformed the venture firm’s operations by cutting out inefficiencies and enabling better data collection and visibility. The platform reduced time spent on data collection by 95%, allowing 8VC to focus more on monitoring portfolio progress and adding value to their companies. With Standard Metrics in place, 8VC can grow to its full potential with peace of mind that its system will scale with it.

Munich Re Ventures is the strategic venture capital arm of Munich Re, a global re-insurance and primary insurance provider. With three separate funds each with their own investment thesis and over $500M in available capital, Munich Re Ventures invests across industries including mobility, cybersecurity and IoT with a preference for series A and B. Their goal is not only to finance industry-changing startups, but to create synergies and strategic partnerships that allow both them and their portfolio companies to grow at scale, whether that means providing de-risking strategies or insurance capacity for startups.

Problem

For almost five years, Munich Re Ventures used a legacy solution for fund and portfolio management. While that tool offered basic portfolio monitoring capabilities, it did not provide the level of automation and real-time insight that Munich Re Ventures desired. As the firm grew its number of investments and multiplied its fund size tenfold, it needed a scalable platform that could not only support streamlined data collection but also provide actionable insights and tools for analysis.

Manual data collection

Munich Re collects different data points across its portfolio companies and sometimes across time periods as well. As a result, the firm resorted to collecting and aggregating this data by hand in Excel, which lead to inconsistencies in company reporting and a lack of standardization across the portfolio. The team wanted to find a way to increase compliance and gather data more consistently from their portfolio companies.

Limited analytics

Because of a lack of data, Munich Re Ventures had a difficult time tracking company performance. They had limited insight into key OKR’s and company metrics such as revenue, runway and burn rate. With over 30 investments to track, Munich Re Ventures needed a better way to visualize these metrics in real time to get a better understanding of company health.

Inefficient workflows

Given its portfolio complexity, MRV needed a tool that was self-service, so the team could quickly process data requests, add new portfolio companies, change inaccurate data points, and create custom reports on the fly. The firm wanted a platform that would enable them to take control of their data.

Solution

Munich Re Ventures transitioned to Standard Metrics when one of their portfolio companies expressed interest in switching over for reporting. The firm chose Standard Metrics to power their middle office workflows so they could focus on helping and building relationships with their portfolio companies. The centralized platform simplified and standardized reporting across Munich Re Ventures’ portfolio and allowed the firm to track and store company data all in one place.

Founder-friendly interface

Standard Metrics automated the company reporting process through the use of custom templates and integrations. Startups no longer needed to sift through spreadsheets, find the right metrics and share information over long email chains. Instead, they could quickly link their banking, accounting and HR metrics directly to Standard Metrics, saving them time and resources. On the firm side, Munich Re Ventures no longer needed to manually create a form each time they sent out a request and could store and manage all of their company data in one place. Standard Metrics eliminated the need to manually follow up with companies for missing information and would automatically update portfolio companies that had outstanding requests and inform firms when they were complete.

Smart portfolio insights

Munich Re Ventures centralized their portfolio and investment data across three different funds using Standard Metrics’s powerful portfolio analytics tool. This gave the firm the ability to look at fund performance over time and across sectors with simple and comprehensive data visualizations. Along with Standard Metrics’ unique portfolio insights, this gave the firm the ability to visualize company runway, revenue and burn rates all on one page. With the power of portfolio insights, Munich Re Ventures is able to analyze their portfolio with much more detail and granularity, helping them make more informed decisions on where, when and how to allocate capital.

Intuitive design

Standard Metrics eliminated the need for Munich Re Ventures to outsource simple requests, giving the firm full control of the platform’s functionality and data. The platform’s intuitive user interface made it easy to onboard Munich Re Ventures’ team and offered users the ability to create custom dashboards, run calculations and quickly edit metrics all by themselves.

Results

Munich Re Ventures transitioned to Standard Metrics in less than a month while Standard Metrics handled the entirety of the firms first quarter information requests with a 100% response rate from portfolio companies. Standard Metrics also onboarded 35 of Munich Re Venture’s portfolio companies onto the platform, parsing through over 1,000 documents and extracting five years of past company data. Since onboarding, Munich Re Ventures has been a key design and thought partner for Standard Metrics, working to solve more problems such as budgets vs. actuals. With Standard Metrics in place, Munich Re Ventures can operate with ease and efficiency and focus on building strategic partnerships with their portfolio companies.

The Problem

With over 40 portfolio companies, the team at January Capital kept finding themselves manually consolidating financial and operating metrics. This involved receiving metrics via emails, manually sending chasers, having back and forth conversations to reconcile historical metrics (particularly when spreadsheet formats changed), and extracting information into internal and external reporting templates.

Not only was it time inefficient and required many man hours to collect, review and transform the data (on a monthly or quarterly basis); but the data fidelity was also low, with data integrity being a major problem. Of course, these issues do not tend to go away — instead over time, they continue to compound and grow.

The Solution

Two years ago, realizing the unsustainability of this state, the team began a software selection process that would allow for a more automated process with appropriate data integrity and governance. Their “holy grail” was:

1. An interoperable system that could integrate into other systems they used; and

2. Was able to be deployed with minimal customization and with a short implementation period; but

3. Did not reduce the feature set it offered.

After speaking to 20 providers, the team finally came across Standard Metrics.

With Standard Metrics

Since the adoption of Standard Metrics, January Capital has managed to materially streamline and improve its data collection and portfolio monitoring process.

As a venture capital investor with minority ownership, January Capital needed a way to incentivize its portfolio companies to share more data, more often.

Designed for investment firms who do not just have 5–10 portfolio companies but a much greater number, Standard Metrics not only made it easier for portfolio companies to share data through pre-built integrations with accounting systems with robust permissioning controls, but also offered a powerful dashboard for portfolio companies to review their own data just as their investors would– rather than simply being a portal portfolio companies log onto to send data to an investor. Moreover, the platform allowed portfolio companies to share their data with not only January Capital, but all of their investors!

The January Capital team instead now focuses their time on interpreting the data and deriving insights. Importantly, Standard Metrics now provides a “single source of truth” that the entire business can access– all team members can see accurate, consistent data.

• 90% reduction in time spent on data collection and consolidation through Standard Metric’s direct integration offering with portfolio company accounting systems
• Significant improvement in team collaboration through a central source of truth for all historical data
• An increased ability to produce actionable analytics through comprehensive, consistent data

First a customer, then an investor

After becoming Standard Metrics customers in early 2021, the January Capital team doubled down on their conviction and became investors later within the same year.