Chapter 11 | Track Your Performance
Disclaimer: The Content is for educational purposes only. You should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained in this publication constitutes a solicitation, recommendation, endorsement, or offer to buy or sell any securities or other financial instruments.
"I'm not a businessman; I'm a business, man!"
Jay Z, Diamonds from Sierra Leone (Remix)
This lyric from Jay Z's verse on Kanye West's "Diamonds from Sierra Leone (Remix)" can be related to Chapter 11, which focuses on tracking your performance as an investor. In the context of the chapter, the quote highlights the importance of treating oneself as a business entity, diligently monitoring investments and their progress.
By considering oneself as a business, an investor is more likely to be proactive in tracking their portfolio's performance, keeping up to date with the companies they've invested in, and making informed decisions based on the data they've collected. This mindset encourages investors to be more organized, disciplined, and strategic in their approach to wealth-building, just as Jay Z is known for his business acumen and success in various ventures beyond music.
To be a successful investor, you need to know how to measure your success, which comes with tracking your performance over time.
Typically, a venture capitalist will have a team of individuals, including analysts who review the financial performance of their investments and follow up with founders. However, as a "Ghetto VC," you might not have access to such resources. Instead, you will need to track your own performance. Fortunately, there are tools and resources available to help you do this. One such platform is KingsCrowd (disclaimer: I’m an investor in this platform, and you can check out my interview with the CEO below!).
Often referred to as the "Bloomberg of the private markets," KingsCrowd allows you to conduct due diligence and analyze various deals. Furthermore, you can upload your portfolio and add your investment companies to track your progress. The platform keeps track of how much founders are raising, your return on investment, and how the value of your investment is changing over time.