Industry Insights
Dec 10, 2025

The Operational Cliff: What Happens When Your VC Portfolio Management Tool Disappears?

The recent news that a dedicated analytical platform is shutting down (a disruption many firms experienced with the Aumni situation) is a clarifying moment for the Venture Capital industry.

It highlights a simple, unavoidable truth: Your portfolio intelligence must be reliable. Your fund’s operations demand business continuity. The risk isn’t merely losing a platform; it’s the unexpected interruption that quickly spreads across your entire operational system when one key part fails.

We respect the work built by every vendor, but these moments force us to ask: is your current tech stack built for stability or is it a collection of single-point solutions that leaves you vulnerable?

The Reality of Disruption: The Domino Effect

Modern VC operations rely on a connected tech stack where information flows seamlessly from one system to another one. When a component responsible for  critical data (such as specific performance metrics from hundreds of portfolio companies) suddenly disappears, the domino effect is immediate:

  1. Data gaps emerge: the primary source for specific, proprietary data vanishes. All downstream reports and dashboards that rely on that data immediately break.
  2. Timing is always bad: this transition crisis almost always lands right before a quarterly LP reporting deadline or during a critical audit period. You are forced to patch the hole during your most high-pressure cycles.
  3. The manual pivot: Teams are quickly pulled away from high-value work (like deal sourcing) and sent back to time-consuming manual processes (like using spreadsheets to reconcile complex historical data). This creates unnecessary effort and delays.

The Audience View: Why This Risk Matters Now

For the General Partner: Maintaining Strategic Agility

The GP’s role is to ensure the firm maintains its strategic advantage. A vendor failure directly challenges this.

There is delay in strategic decisions. Operational chaos prevents you from acting quickly. If your forecasting tools or key metrics are compromised by data loss, strategic decisions (such as making a follow-on investment or planning an exit) are delayed until the data is manually re-validated.

Then there’s the business continuity. Your LPs invest based on trust and a perceived level of operational sophistication. Choosing a stable, comprehensive partner is essential business continuity planning.

For the Finance Lead: Managing Audit and Compliance Integrity

The Finance team cannot compromise on data integrity or compliance. A vendor shutdown introduces critical risk here.

Losing a system that captures historical performance, legal records, or valuation inputs also means losing the continuous, auditable trail regulators and auditors expect Reconstructing this history under pressure is difficult and opens the door to compliance errors and audit risks.

Additionally, the historical record of complex deal terms (like anti-dilution or carry structure details) is vital. If that data is difficult or impossible to retrieve, the very basis for your financial reporting and distributions is at risk.

For the Operations Lead: The Cost of Disrupted Workflows

For Operations, the issue is straightforward: ensuring the team can do its job efficiently.

The moment a key tool disappears, every automated workflow—from data ingestion to LP packet production—grinds to a halt. The cost of manual remediation is far higher than any subscription fee.

Then comes the transition dillema: A move is necessary, but the thought of a difficult data migration is a deterrent. You need assurance that the transfer will be an operational upgrade: a path to reliable, seamless continuity, not just a painful data dump.

Vestberry: Reliability and Operational Focus

The lesson is not to avoid specialised tools, but to ensure your Operational Backbone is complete and stable.

Norrsken Onboarding Process with Vestberry

We built Vestberry to solve this very challenge. We are a single, cohesive platform that covers portfolio management fund operations, from monitoring and reporting to forecasting and compliance. We don’t just extract data; we unify it to ensure uninterrupted workflow continuity.

If your team is navigating the uncertainty caused by an incomplete or discontinued vendor, or if you simply want to ensure your firm is protected from the next operational surprise:

Reach out to our team to discover how Vestberry can help you.

Author

Vestberry

Vestberry is a portfolio intelligence solution designed for venture capital funds to maximize portfolio value through actionable insights, comprehensive portfolio monitoring, and automated data management.

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