What is a CRM and why does a fund need one?

According to the OG CRM Salesforce, a CRM which is also known as a Customer Relationship Management system is "a technology for managing all your company's relationships and interactions with customers and potential customers. The goal is simple: Improve business relationships to grow your business."

A fund's customers can be seen as both their LPs and the vehicles they invest in e.g. for a VC your customers are both those that have invested as well as the companies that you've invested in.

A CRM like Hubspot or Salesforce will help your team keep tabs on who the fund's investors are - as well as related details like how they prefer to be communicated with, where they are located, which team members are involved in the investment and hop much they have invested in the past. The CRM also stores important historical communications between the fund and its LPs, providing a comprehensive view of the relationship over time while helping with information accuracy.

How can a CRM help my business?

The CRM will improve your funds communication both internally and externally.

Whether you want to focus on improving your marketing, sales, or customer service, a CRM will help you do this with minimal friction to your team.

Knowledge is power. Help your team work smarter and not harder with email templates, syncing your gmail or outreach with your system to remove human error and make sure your data is up to date.

What tools should I look for in a CRM?

If a CRM's main purpose is to keep track of your deals and to ensure that all the most important information on each LP/Investment is in one place then you should make sure any CRM you invest in has the following:

  1. email tracking (so that you never lose track of a relationship)
  2. ability to send sequenced emails (this is going to 10x your productivity)
  3. a good notes function (we want the CRM to be your source of truth)
  4. ability to execute marketing through the same platform or at least integrate your marketing efforts into the system
  5. a good search function to help your team find what they need
  6. low code automation so you can build what you need without engineering help
  7. flexibility: the crm should be accessible across devices, and needs to be mobile-friendly as you and your team will often be on the go.