Creating a Unique VC Platform Strategy in 5 Simple Steps
TL;DR: There are infinite ways to support your portfolio companies, but that doesn’t mean you should attempt them all. For small VC firms, maximizing your founders’ and stakeholders’ benefits starts with leveraging your firm’s unique strengths and differentiators. Knowing what sets you apart helps your founders understand exactly when and how you can assist them.
Creating a Platform for LEAP
In 2022, I transitioned from being a founder in LEAP Global Partners’ portfolio to leading their VC Platform program, and our enthusiasm to support our founders was palpable. We wanted to do everything for our founders but were a small team with limited resources. This realization came during one-on-one discussions with our founders, where a recurring theme emerged: the desire for deeper access to our network.
As a firm with a unique LP base that spreads across the Americas, our expansive network of institutional and corporate investors, angels, and former founders represents our strongest asset. This led us to strategically focus our platform around our network and build more personalized programs like our Family Office Network and The Rising Tide Network.
How We Did It
1. Understanding the Nature and Uniqueness of Your VC Firm
Before you can develop an effective platform strategy, it’s crucial to understand your firm’s vision, values, and priorities. Identify your strengths and what makes your firm different. Recognize that not all VC firms need to mirror each other. What unique advantages does your firm hold?
2. Defining the Ideal Platform for YOUR Firm
The core objective of a VC Platform should always be aligned with the firm’s broader goals. Understanding how and to whom you add value is essential — talk to these stakeholders! I know firms whose Platform team specializes only in areas like business development, talent acquisition, or fundraising. That’s all they do, and they’re great at it.
Remember, not every firm’s Platform will look the same, and your Platform Strategy should also not stay the same (reiterate).
3. Personalizing and Focusing Your Efforts
Focus on defining specific ways to add value to your main stakeholders and create targeted programs to achieve these goals. While any firm can offer perks like software discounts, not all can provide significant access to LPs, partners, and broader networks.
Something to consider is your firm’s stage. A Platform strategy during fundraising may not look like a Platform strategy while deploying.
4. Measuring and Iterating (a lot)
Success is a moving target. Define a few Key Performance Indicators (KPIs) that align directly with your firm’s objectives. Monitor what works and what doesn’t, and adjust your strategies accordingly. Sometimes, changes in your firm’s goals may need a revision of your Platform Strategy, or vice versa.
Make sure your processes and systems are not just as automated and streamlined as possible, but easy to measure.
5. Underpromise and Overdeliver
The VC world is rife with expectations. It’s crucial that your team consistently delivers on its promises to founders and investors. Implement systems to ensure potential founders are never left without follow-up, countering the common perception of VCs neglecting their commitments. As a (now) fellow VC, please don’t make us look bad!
And always remember: your founders and stakeholders are your customers. The best way to gauge the success of your platform is by seeking their feedback directly. This feedback loop will guide your current strategies and shape your future initiatives.
So, how will your firm and platform differentiate from the rest?
I want to give a huge thanks to the VC Platform Community for being extra helpful as I transitioned into the VC world. If you’re trying to join VC and want to learn more about VC Platform, their Content Library is amazing.
