Over the last ten years, a new trend has emerged amongst leading Venture Capitalists to build a community around a thriving network of entrepreneurs and investors.Prominent VC firms, including First Round, Workbench, Spark Capital, and 500 Startups, have already begun to invest time and money into developing their own communities in a bid to bring more value to their existing network.In this article, we take a look at the possible limitations of a traditional professional network and how building an online community could help VCs bring more value to their portfolio companies and their investors.
Centralized and Efficient CommunicationOnline communities give VC companies a more efficient way to facilitate communication across various network segments.
While most networks rely on the power of email, it’s all too easy for an email to get lost, deleted, or misplaced or for your message to get diverted.Newsletters and email communications certainly provide well-appreciated content and updates from your company.However, this type of unidirectional communication does not give your network a sense of belonging that could be associated with your company.As a result, members feel less engaged in events and requests for communication than if they were consistently looped into a community based on their interests.
Knowledge Exchange and MentorshipOnline communities provide the perfect environment to exchange relevant knowledge and experience.With a centralized communication platform, members of your network can collaborate, find employees, review portfolio companies, or request specific expertise, all within one searchable organized space.Your company can tailor its content in the community to encourage in-depth discussions about topics that might attract new portfolio companies, or that can develop your company’s thought leadership in a certain sector.A community for your VC firm can provide a place where experienced entrepreneurs, business specialists, and investors can offer mentorship and advice for your portfolio companies.Specialized match-making tools can make it easy to connect your portfolio companies to the right resources in your network, with very little effort from your team.
Competitive AdvantageWhile a handful of VCs are already reaping the benefits of an established community, it is still yet to become the norm.Providing access to your network in the form of an online community can be a unique selling point that could attract new founders and future LPs.An online community moves beyond a simple business transaction and gives members an added benefit: the chance to build meaningful relationships and open up a world of opportunities.Creating a space where individuals or companies with a common goal can connect with each other adds unbeatable value to your network.
Whatever your needs, you must understand your reasons for creating an online community before choosing the right platform.Consider exploring Panion, a customizable community management platform that gives you all the tools needed to build a community of investors, advisors, and/or entrepreneurs.