economie

We got an exclusive look at the AI dashboard VC firm TRAC uses to help its startups raise new funding

September 10, 20240
TRAC’s valuation estimation tool.

Legacy/TRAC

The first tool in TRAC’s dashboard estimates a company’s valuation and tracks it over time.

The firm uses comparable deals, raises from TRAC’s direct and indirect competitors at a similar stage, as well as the portfolio company’s metrics like its total capital raised, to help calculate that valuation.

“As a founder, one of the strangest parts of the process is figuring out how much to raise and at what valuation. None of it makes any sense,” Kteily said.

He said that, when Legacy raised its most recent round, TRAC’s estimated valuation was within $3 million of what TRAC actually landed in the fundraise.

Legacy’s estimated valuation has been redacted from this slide.

The dashboard compares the company’s valuation multiple with the valuation multiples of comparable deals.
TRAC shows the company where it ranks on certain metrics relative to its competitors.

Legacy/TRAC

To determine which startups to invest in, TRAC’s algorithm ranks companies on a number of metrics — the quality of their existing investors, how much traffic their website is getting, and other characteristics.

The dashboard for its founders, in turn, shows portfolio companies how they measure up on those metrics against their competitors.

This slide is illustrative, and the ranks shown here do not necessarily reflect Legacy’s real-time metrics on TRAC’s dashboard.

Founders can test out different capital and valuation targets in TRAC’s fundraising simulator.
TRAC’s connected investors tool.

Legacy/TRAC

One of the dashboard’s key tools helps founders hone their outreach to new investors.

The table lets founders pick one of their existing investors to see what other firms or individuals that investor has previously made bets alongside.

Rick Heitzmann, one of Legacy’s existing investors, has co-invested with top VC firms including Andreessen Horowitz, according to TRAC’s tool.

Kteily said these capabilities will be extremely helpful to him when Legacy goes to raise more money — “Otherwise, you’re doing all of this manually.”

The dashboard also highlights investors who would be good candidates to lead a startup’s next fundraise.
TRAC’s tool shows founders who might lead their next round.

Legacy/TRAC

Cold reach-outs are generally frowned upon in the VC world. Founders always want to connect with new investors through their existing investors, or through other founders already in an investor’s portfolio.

TRAC’s dashboard makes it easier for its portfolio companies to do just that, while also narrowing down which investors could actually lead their next round, based on what percentage of rounds they’ve led in the past.

Kteily called this particular tool “fantastic.” He said knowing which investors to reach out to also reduces the burden on his existing investors, whom he might otherwise call up and ask what firms could be good fits.

Another table not shown here lists the investors behind the startup’s direct competitors. Founders should stay away from taking meetings with those investors, Campbell said, in case those VCs are just digging for competitive information.

“This is a founder’s shield against unscrupulous VCs,” Kteily said.

Legacy has redacted investors that aren’t public from this slide.