I often come across firms trying to piece together dealflow management solutions using free or freemium tools, some of which I like a lot myself. However, “self serve” systems may seem cheap but have many hidden costs. Assuming an associate is assigned to handle dealflow mgmt, how much does that cost in terms of their time? And is that person making a career mistake by taking on administrative duties instead of focusing on the core of the business: sourcing deals, getting deals done, and helping portfolio companies be successful? Everything else is a diversion, including putting software and processes in place.

There are good reasons to hire Sevanta to handle this for you:

  1. we’ve done this a lot; once we learn a little bit about how you operate, we can make suggestions based on best practices that we’ve put in place for many other firms
  2. during the customization process we can offer you simple bite-sized decisions that put you in control without putting too much of a burden on you
  3. we can do this very quickly, so that you’re up and running within days, not weeks or months
  4. we’ll continue to followup over time to make sure things are working well for you; the customization process never truly ends, and proactive followup with end-users is essential to building firm-wide habits that survive the initial sparkle of a new system

…and finally, by taking the load off of your staff and maximizing the chances of the project’s success, in the long run we are indeed cheaper — once you do the math.

Leave a Reply