Why WhatsApp has revolutionised the Venture Capital industry
The age of the email is over. It is time for the WhatsApp takeover. At RLC Ventures, a world without WhatsApp is difficult to imagine. Instant digital messaging is crucial for the way we interact with companies and investors alike. In an industry that revolves around communication and personal interaction, WhatsApp has truly revolutionised the way we do business. As WhatsApp adds more functionality, email will descend into obsolescence.
Millennials and Generation Z users check WhatsApp an average of 23 times a day
At RLC Ventures, we focus on investing in millennial founders because 80% of the world’s top 500 tech companies have been founded by 25 to 30-year-olds. This is a generation raised on constant waves of new technology and are comfortable using instant messaging to catch up with friends, arrange parties and, most importantly, conduct business. Hence, more and more millennials are finding WhatsApp a more reliable and convenient way to reach businesses.
Entrepreneurs work 63% longer than the average UK worker
Young entrepreneurs want to achieve a rapid resolution to a problem and have 24/7 connectivity with their VC. With their round-the-clock work ethic and desire for instantaneousness, WhatsApp makes on-demand support possible. Emails, on the other hand, are easy to ignore and thus solutions can get delayed or remain unresolved as the inbox fills up. WhatsApp allows us to communicate with our founders at any time of the day to ensure they can carry on with what they do best – run a company.
Our firm: enhancing efficiency in the workplace
As a VC firm dependent on internal communication between team members, WhatsApp is a prime collaboration tool for RLC Ventures. Group chats via the desktop version of the software allow us to engage with multiple colleagues at one time while also instantly sharing documents without having to leave the app. Not having to wait for the formalities of writing and then receiving an email, we bypass office politics by using WhatsApp which in turn enhances productivity. It frees up more time – and time is money! The dark ages of “Stuck in Outbox” frustrations are over.
Investors and co-investors: simplifying funding rounds
Participating in a funding round to raise investment for companies is entirely dependent on communication. WhatsApp voice notes simplify this process significantly. Being able to send voice messages to investors provides the personal touch of a phone call without the pointless chit chat, allowing us to collaborate effectively and close a funding round more quickly.
The prime communication tool: 55 billion WhatsApp messages are sent everyday
Ultimately, WhatsApp is now essential to the way we communicate at RLC Ventures. As communication is fundamental to raising investment, finding deals, and teamwork, WhatsApp is vital to startups. The average email open rate – the percentage of recipients that opens your emails – is a meagre 25% for SMEs. Unsurprisingly, WhatsApp messages have a 70% open rate because we rarely ignore it. Therefore, WhatsApp provides a powerful alternative for B2B communication as it is more capable to get things done quicker.
This is by no means the best practice or an advert for WhatsApp but we felt sharing this will allow founders and VCs to be more efficient in their day-to-day working lives. As time is the most precious commodity we all have, it certainly can’t be wasted.
RLC Ventures is an award-winning venture capital firm focusing on seed and early-stage companies with exceptional, young founders – predominantly within Proptech, Fintech, technology and Tech for Good. RLC Ventures focus on investing in millennial founders of businesses with immense growth potential. Founder and CEO Reece Chowdhry was named in the “Top 5 Asian Tech Investors” 2018 and is the youngest ever investor profiled by The Sunday Times.
Written by Reece Chowdhry (Founder & CEO) and Amar Patel (Investment Analyst) of RLC Ventures.
Originally published on 27th June 2018 on The Startup Network