How to Build a Prospect Risk Assessment Model for Q2 and Beyond | Sapphire Ventures


This post is by Rico Mallozzi from Sapphire Ventures Perspectives - Medium

In our recent post on ways B2B companies can build revenue resiliency, we wrote about the importance of rigorously assessing the risk of your current and potential customers based on the recent shocks they are experiencing. What makes this economic disruption and the impact it is having on businesses unlike any other is the uneven and global effect it is having on companies. In some instances, companies are experiencing a tailwind from these events and as a result have seen a surge in demand for their product or service, while many others are facing detrimental headwinds.

Many of our portfolio companies are in the process of assessing existing customer and prospect risk — something they’ve been doing since the onset of the pandemic, but has now become much more difficult because of it. With the new quarter upon us, we know many CROs and sales leaders are once again taking a look at the next three months and are mapping out how best to navigate what’s ahead.

That’s why the Portfolio Growth team at Sapphire Ventures pulled together the Prospect Risk Assessment Model. This model is a framework for CROs and sales teams to leverage so that they can better measure and understand how potential customers are being affected by the crisis. By utilizing the following framework, which looks at four key factors, teams can adjust their GTM motions across a continuum of potential changes for each prospect rather than making a binary choice that will be less effective:

  • Location: Evaluate how your prospect has been impacted by COVID-19 based on their geographic location.
  • Size of Business: A prospect’s size (via employee count and/or revenue) is a relevant indicator of financial strength and how IT budgets may be impacted by COVID-19.
  • Industry: COVID-19 has created a wide range of business impacts across industries and sub-industries. As we know, some are being hit more than others.
  • Solution Relevance: COVID-19 is causing businesses and IT organizations to look for technologies to solve time-sensitive pain points.

View the Risk Assessment Model Here:

https://www.slideshare.net/RicoMallozzi/sapphire-ventures-prospect-assessment-model

Our hope is that this framework provides a model that you as a CRO or sales leader can use to understand how this disruption may impact your business relationships, sales discussions and commercial opportunities. We believe that those that respond quickly with tailored GTM motions will be able to continue to strengthen their relationships with prospects, preserve ARR and identify new revenue opportunities.

Disclaimer: Nothing presented herein is intended to constitute investment advice, and under no circumstances should any information provided herein be used or considered as an offer to sell or a solicitation of an offer to buy an interest in any investment fund managed by Sapphire Ventures. Information provided reflects Sapphire Ventures’ views as of a particular point time. Such views are subject to change at any point and Sapphire Ventures shall not be obligated to provide notice of any change. Sapphire Ventures does not solicit or make its services available to the public and none of the funds are currently open to new investors. Past performance is not indicative of future performance.

Originally published at https://sapphireventures.com.


How to Build a Prospect Risk Assessment Model for Q2 and Beyond | Sapphire Ventures was originally published in Sapphire Ventures Perspectives on Medium, where people are continuing the conversation by highlighting and responding to this story.

The VC Fundraising Environment and COVID-19


This post is curated by Keith Teare. It was written by Elizabeth“Beezer”Clarkson. The original is [linked here]

It’s only Tuesday morning and already it’s been a tough week and while it’s too early to know exactly how #COVID19 will impact the #VC fundraising environment. All of us at Sapphire Partners are getting questions from folks on our perspective, including being sent this article in Trusted Insight on the environment #endowments might be finding themselves given the current market crisis.

Here is my perspective: it feels like a slow down and potentially triage as LPs reconcile their situations is more likely than not, unfortunately. As tough as this might be, it is prudent for GPs to think about this now and not assume that all sources of capital will be there now or post crisis. In the meantime, I suggest GPs:

  1. Talk to your portfolio and see where they are, how you can help. Make sure they’re thinking about burn rates and contingencies.
  2. Re-visit your reserve math and portfolio construction. Your portfolio is likely going to need help, and you’ll want to support them and make new investments.
  3. Reach out to your LPs. We’ve had multiple of our GPs send us notes with how they are doing personally, as a firm and how their portfolio is doing. We love this and so appreciate them taking the time.
  4. Consider doing a Zoom update call with your LPs. We’re all #WFH, and a little visual check in can be a nice way to feel connected and provide for expedient many-to-many communication. Let your LPs know if they can help, or just share a virtual #quarantini: https://thenovicechefblog.com/quarantini/
  5. Ask your LPs how they are doing as people. And while it might be too soon — it could also be worth asking if the current environment has impacted any of their investment considerations going forward in the near term. It’s better to start the conversation now.

#COVID19 is unprecedented, and it’s going to take time for us to sort out the impacts. In the meantime, any other suggestions from GPs on how to engage your LPs right now?

#openLP #venturecapital #fundraising #vc


The VC Fundraising Environment and COVID-19 was originally published in Sapphire Ventures Perspectives on Medium, where people are continuing the conversation by highlighting and responding to this story.

The VC Fundraising Environment and COVID-19


This post is by Elizabeth“Beezer”Clarkson from Sapphire Ventures Perspectives - Medium

It’s only Tuesday morning and already it’s been a tough week and while it’s too early to know exactly how #COVID19 will impact the #VC fundraising environment. All of us at Sapphire Partners are getting questions from folks on our perspective, including being sent this article in Trusted Insight on the environment #endowments might be finding themselves given the current market crisis.

Here is my perspective: it feels like a slow down and potentially triage as LPs reconcile their situations is more likely than not, unfortunately. As tough as this might be, it is prudent for GPs to think about this now and not assume that all sources of capital will be there now or post crisis. In the meantime, I suggest GPs:

  1. Talk to your portfolio and see where they are, how you can help. Make sure they’re thinking about burn rates and contingencies.
  2. Re-visit your reserve math and portfolio construction. Your portfolio is likely going to need help, and you’ll want to support them and make new investments.
  3. Reach out to your LPs. We’ve had multiple of our GPs send us notes with how they are doing personally, as a firm and how their portfolio is doing. We love this and so appreciate them taking the time.
  4. Consider doing a Zoom update call with your LPs. We’re all #WFH, and a little visual check in can be a nice way to feel connected and provide for expedient many-to-many communication. Let your LPs know if they can help, or just share a virtual #quarantini: https://thenovicechefblog.com/quarantini/
  5. Ask your LPs how they are doing as people. And while it might be too soon — it could also be worth asking if the current environment has impacted any of their investment considerations going forward in the near term. It’s better to start the conversation now.

#COVID19 is unprecedented, and it’s going to take time for us to sort out the impacts. In the meantime, any other suggestions from GPs on how to engage your LPs right now?

#openLP #venturecapital #fundraising #vc


The VC Fundraising Environment and COVID-19 was originally published in Sapphire Ventures Perspectives on Medium, where people are continuing the conversation by highlighting and responding to this story.

Where top VCs are investing in open source and dev tools (Part 2 of 2)


This post is curated by Keith Teare. It was written by Arman Tabatabai. The original is [linked here]

In part two of a survey that asks top VCs about exciting opportunities in open source and dev tools, we dig into responses from 10 leading open-source-focused investors at firms that span early to growth stage across software-specific firms, corporate venture arms and prominent generalist firms.

In the conclusion to our survey, we’ll hear from:

These responses have been edited for clarity and length.