The Problem With Venture Capital Databases
Venture Capital Database (or bad) is an online resource providing data and documentation relating to private equity. The database includes data from more than530 venture capital companies, covering all private equity activity since 1982. Venture Capital Database provides detailed information on individual venture capital companies, rather than simply focusing on capital marketplaces. The information includes the valuation of the company, history, projections, operating results, financial statements, ownership structure, credit facilities, business plans, marketing strategies, and financial sponsorships/aids. The information is provided in easy to understand formats so that anyone can access it and understand it, rather than having to go through years of research to learn the information contained within it.
Data entered into Venture Capital Database must be accurate and complete. Any deviations from these standards are quickly identified and action taken. It is expected that all data entry by venture capital firms will be reviewed and corrected. As part of the approval process for accessing the VCD database, any potential clients are required to fax or mail a copy of their current financial statements along with any relevant documents such as credit agreements and business plans to the contact person in the database at VCCF.
To enhance the reliability of VCCF, we have developed a great venture capital database service known as the Venture Capital Database, also available free of charge on the web. We have continued to expand the reach of this database, adding new features, while maintaining the security and reliability of the existing features. The basic function of the Venture Capital Database is to provide an online research tool for potential private equity funding sources. In order to use the Venture Capital Database effectively, you should have some idea of how venture capital firms work.
The first step in using the Venture Capital Database, and one of the main reasons why many companies fail in their operations, are poor database design. Many venture capital databases are designed by individual venture capitalists who are not responsible for the accuracy and completeness of information contained within them. These poor venture capital databases are often used by venture capital investors without the knowledge of programmers who are experienced in creating effective and user-friendly databases. Because of the poor design of the previous databases, some investors used the Venture Capital Database to fund more than they could afford, resulting in the death of the company. To avoid such problems in the future, and to ensure that your database contains accurate and comprehensive information, you should contract with a reliable database design company.
Another problem that frequently occurs is that the VCC data feed into the system may become outdated. While many companies use VCC data feeds to generate a wide range of reports that may be used for planning purposes, there are some companies that use VCC data exclusively. When this happens, the VCC data feed may be updated more frequently, but the information contained within the database may no longer be updated as it becomes older. In addition, the VCC data feed can be used to generate more reports than needed at any given time. A quality Venture Capital Database should allow the user to generate and update any VCC report at any time.
The final problem that commonly occurs in a venture capital database is the inability of users to update the information contained within the database. Some of the common reasons this occurs include the programmers attempting to add new venture capital data fields, or the developers forgetting to remove old information. While you can update information manually within the VCC interface, it is often much easier and time saving to use a flexible filtering system to keep track of changes and updates to specific fields. The benefit of flexible filtering systems is that they allow you to perform the necessary updates in real time, while allowing you to save time and resources that would otherwise be required to perform the updates manually. You should always perform frequent backups of your VCC applications and keep a copy of all the user information associated with each of your clients in a safe place.
