Capital, the leading provider of non-dilutive financing, announced the launch of a new tool for private investors called “Portfolio Analytics.” The tool shows investors how non-dilutive capital improves their fund returns and facilitates direct financings for eligible companies. It also provides the ability to benchmark companies on a fundamental basis and replaces manual company updates as a modern alternative to legacy portfolio management tools. “Portfolio Analytics” is free for any VC firm, private equity firm, or other private market investor onboarding up to 10 active investments.
“Portfolio Analytics is a giant leap forward for investors and their portfolio companies,” said Blair Silverberg, CEO of Capital. “Growth company founders and their investors lose 10% of their share value EACH YEAR through dilution caused by follow-on equity rounds. Never before has it been possible to continuously scan your entire portfolio for opportunities to avoid dilution and directly facilitate financings.”
The Portfolio Analytics tool runs on Capital’s AI-based platform the Intelligent Credit Market which helps companies and investors make better decisions about capital allocation and fundraising. The tool connects to more than 70 systems of record to automate the collection of business performance data to make clear how new economy companies, which are capital light but intangible asset heavy, create value.
In addition to systematically avoiding portfolio dilution, private market investors can use Portfolio Analytics to pre-empt growth rounds and better allocate time to the companies that need them most. Over 250 of the top global balance sheet institutions ranging from banks to family offices and sovereign wealth funds are using Capital to navigate the private markets.
New economy businesses are generally underlevered when compared to old economy businesses because lenders do not yet universally understand the value of their intangible assets. Even public companies in the $1.7T Bessemer Cloud Index, are 17x under-levered relative to the S&P 500. There is a huge opportunity for fund managers to achieve higher returns and add more value to their companies by helping them to intelligently navigate the credit markets and build robust capital structures. Capital’s Portfolio Analytics tool lets investors add value around the clock with near total visibility into the private company credit market and the financing terms it provides.
“Capital is on a mission to make capital access more transparent and data-driven, in ways that benefit company founders and investors,” said Mark Terbeek, a partner at Greycroft, one of the early investors that has backed Capital. “We believe that this new Portfolio Analytics tool is going to fundamentally alter the math behind private company investments while also giving investors more opportunities to add value to their portfolio companies.”
Investors can sign up for Portfolio Analytics and extend access to their portfolio companies with a simple three-step process:
- Investors create their freemium account at https://www.captec.io/portfolio-analytics where they can easily customize the look and feel of their accounts before inviting their portfolio companies.
- Investors grant access to portfolio companies within a few simple clicks.
- Companies securely link their financial data via uploaded statements or over 70 direct system of record connections. Companies control who may access their data and what they see with detailed permissions that allow them to round and delay data points as well as revoke access which, in an era where financials float around in email, is a much needed step into a modern era of financial data privacy.
- Portfolio Analytics systematically identifies opportunities to avoid dilution which become actionable when facilitated via double-opt in from the investor and company. In addition, Portfolio Analytics streamlines financial communication between investors, their portfolio companies and LPs.