VC portfolio construction model 💼

Use this to model a venture fund 💰

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Seed stage portfolio construction is challenging but critical for venture capital funds' success.

I recently discovered a brilliant VC Portfolio Construction Model demonstrating a new best practice for early-stage VCs. It stands out for several reasons:

• Holistic approach - the model combines assumptions, actual portfolio data, cash flow projections, and return scenarios in one place. This enables comprehensive analysis.

• Flexible assumptions - key variables like check size, follow-on strategy, and conversion rates can be easily adjusted to model different scenarios.

• Links assumptions to outputs - changing assumptions flows through to projected recyclable capital, cash runway, and other key outputs.

• Incorporates real data - as actual investments are made, the model seamlessly incorporates them to refine projections.

• Models return scenarios - testing different return scenarios shows how capital duration changes based on performance.

This model exemplifies the data-driven, dynamic approach required for optimal early-stage portfolio construction. The tool allows VCs to continuously refine their strategy based on real-time learning and projections.

So don’t waste time trying to figure out this on your own. Use this template to spearhead your fund's operations and scale your investments👇🏼

P.S. as a bonus you will also unlock the Financial Template Bundle for VCs 📚 [+3 more templates]