Customer Stories

Joseph Advisory Doubles its Portfolio Reporting Rate with Hockeystick

How Hockeystick helped the family office improve critical aspects of its back office operations and provided the foundation for it to become data-driven.

Joseph Advisory is an independent advisor whose client is a family office that invests in early-stage technology companies. Founded in 2006, the El Paso, Texas-based firm has advised in over 80 transactions in direct investments and funds, and aims to add value to the startups it backs through specialized advisory services and resources.

Portfolio ReportingOver the fund’s lifecycle, its Founder and Managing Director, Beto Pallares, recognized the need for sound, consistent data to track his portfolio’s growth and sought out a software platform that could automate the firm’s data collection and reporting requirements. RelateIQ was Joseph Advisory’s solution of choice for a few years but in 2014 they were acquired by Salesforce and quickly phased out. Beto was forced to start his search again and what he discovered was an even better way to collect, manage and analyze data; Hockeystick.

Tell us about Joseph Advisory.

Beto Pallares, Managing Director of Joseph Advisory: “On behalf of a family office, Joseph Advisory provides access to funding and strategic relationships that are too costly for startups to build themselves. We seek direct investment opportunities in pre-seed, seed and early-stage technology-driven companies domiciled in the United States with AUM of sub-$100M. We’re sector agnostic but prefer capital efficient sectors and coming in early.

We have over two decades worth of experience in operating roles and investment experience, primarily with startups, and have seen a lot of what works and what doesn’t. That’s why our team is dedicated to helping startups avoid common mistakes and capitalize on opportunities that may not be immediately obvious.

Through our international pool of connections, the Joseph Advisory team is very focused on providing advisory services and resources to our portfolio companies, including business development, strategic expansion and market penetration.”

What made you turn to Hockeystick after RelateIQ closed?

“For a while, I was using RelateIQ for portfolio reporting but it was acquired by Salesforce a few years ago and phased out pretty quickly. After that I began my search for a replacement platform. By late 2016, I was looking at a few potential options to meet my requirements and decided on Hockeystick.

I found your team to be very knowledgeable and flexible to work with, and the product made a lot of sense for us — it’s intuitive, accessible and effective for both my companies and my firm to use.

I experimented with the product and knew that we could accomplish exactly what we needed to with Hockeystick. Our quarterly compliance has increased 2x and we are collecting and analyzing data faster than before.

It took us very little time to get up to speed with Hockeystick.”

What are the key differences between RelateIQ and Hockeystick?

“RelateIQ was basically a spreadsheet, whereas Hockeystick is far more technologically advanced and visual. I now have a clearer understanding of the metrics that we track the portfolio with and can easily compare their performance levels.  It gives me an intuitive dashboard I can glance at.

To be honest, it’s a lot easier to spot trends and outliers with a graph than with number-based tables and spreadsheets. Sure, spreadsheet tools let you create basic built-in charts but, in today’s market, these standard graphs are just table stakes. The real data wins are found in multiple types of advanced visuals.

Along with this, the spreadsheet process is incredibly time-consuming, tedious and, most importantly, error-prone. The risk for fund managers is that they could be reporting inaccurate data on how investments are performing to LPs and other key stakeholders. These are numbers that you can’t afford to get wrong.

We don’t have a large team and, therefore, a tool like Hockeystick really brings us significant value. It also automates our quarterly portfolio reporting process — a great ROI that will allow us to focus more time on other areas of the fund.”

What would you say to a fellow fund manager who is hesitant to switch from spreadsheets?

“If you want your portfolio companies to use tools and technology that aren’t antiquated and move towards best in class, why wouldn’t you do that yourself? It’s one thing to be thrifty but it’s another thing to be behind the ball.

Family offices need to stop thinking that they don’t have enough deals to derive value from a tool like Hockeystick. Even with a small portfolio, most funds spend 60-80% of their time on data collection and drudge-work, and as little as 20% on analytics.

Tools like Hockeystick flip that number and that’s how it should be.”

How has Hockeystick impacted your portfolio relationships?

“It’s impacted them in a positive way. Since implementing the product I’ve found that my entrepreneurs are not only filing their quarterly reports but they’re also picking up the phone more to discuss what they’re about to send to me.

I have had more strategic conversations with my entrepreneurs after implementing Hockeystick than before.”

How has Hockeystick helped Joseph Advisory become more data-driven?

“The implementation of Hockeystick has helped us put a strong foundation in place to move in the direction we want to move; data-driven. It’s really helped us catch up in the reporting and analytics space.

It’s transformed our portfolio company reporting and analysis, with the added benefit of freeing up my time to originate and complete deals and to track portfolio company progress on things like burn rate, CAC, churn and many other performance metrics in granular detail.

The metrics I care about most also get added to my dashboard, so I get that immediate snapshot whenever I login to Hockeystick.

Joseph Advisory is also able to maintain a thorough quarterly reporting period with a growing portfolio without needing to hire analysts. We can do it all with the software.”

Are data-driven family offices the way of the future?

“I think it’s already here. With higher expectations from stakeholders, fierce competition among industry participants, and the need for better alignment with the changing needs of portfolio companies, being data-driven is critical now.

There will always be a place for intuition and gut checks but being data-driven is important.

Hockeystick’s combination of technology and expertise has enabled Joseph Advisory to provide greater levels of transparency and more timely reporting to our investors while providing us with a platform that supports the continued growth of our investments. This allows us to demonstrate the significant and positive impact that our portfolio companies have on the economies in which we invest.”

 

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