What is Fund Forecasting?
Fund Forecasting is a portfolio modeling, portfolio management, and reporting platform for venture funds.
Fund Forecasting enables the following:
Portfolio Construction: - Create a portfolio construction model and share with potential LPs
Active Portfolio Forecasting: - Update construction model with actual investments and understand how actual performance deviates from plan (and what to do about it) - Model individual deals, strategize reserves and exit scenarios for each investment
Portfolio Management & Reporting: - Track and manage company KPIs and deal documents
Enrich internal reviews with data-driven insights on reserve deployment and with over 80 different performance metrics at the fund-level and deal-level.
Enrich external reporting with pre-built reports for LPs Funds modeled on our platform can be shared with others (including LPs) with a variety of publishing, exporting, and reporting options.
What pain points do we solve?
While we are known for portfolio construction, Fund Forecasting is more than just a replacement for a spreadsheet model. It's your fund model, portfolio management, and reporting solution - all in one.
Unlike traditional portfolio management platforms that only focus on historical performance, Fund Forecasting also runs a forecast model for your fund. The platform can report on your actual fund performance, but also helps you plan future capital allocation, reserve strategy, and scenario-planning for individual deals - all while giving you constant actionable insights on improving fund performance.
The quantitative techniques in Fund Forecasting empower funds to:
Optimize capital allocation towards reserves and future investments
Make data-driven decisions for each deal (how much to reserve, should we partial exit, likely exit scenarios)
Get actionable insights on fund performance (who are our best co-investors, which sectors or geographies perform the best in our portfolio?)
In our experience, most funds find it difficult to do the above in spreadsheets given the time and effort needed to maintain these spreadsheet ecosystems.
Getting the most out of Fund Forecasting
Fund Forecasting is a "forward-looking" model that requires you to think about future scenarios for each deal and for your fund and build them in Fund Forecasting - so your investment and capital allocation process can be more data-driven.
If you are a seasoned data-driven manager that employs such quantitative analysis already in your fund's workflow - Fund Forecasting will not only improve and automate these processes, but also save you countless hours and resources in putting these techniques to work.
If you are an emerging fund manager with limited resources, Fund Forecasting will enable you to benefit from the same quantitative workflows as established funds with large teams - but without the cost structure of having to hire a large team of analysts/associates.
To maximize the full potential of Fund Forecasting, we encourage your entire investment team to adopt Fund Forecasting as part of daily or weekly fund operations. Fund Forecasting's calculated metrics will only be as accurate as the underlying data that powers them.
What Fund Forecasting is not
Fund Forecasting is not a back-office or fund administration platform. We are a front-office platform for GPs and investment teams. Your capital calls, accounting statements, and other standard LP reporting are still expected to come from your administration platform - although many GPs love to enrich their LP reports with certain reports and charts directly from Fund Forecasting such as company tearsheets, performance summaries, etc.
Fund Forecasting is not a CRM or pipeline management platform. Many of our clients set up integrations with their CRM system to automatically add deals into Fund Forecasting once a deal reaches a certain threshold.