Finance · 11 min

Synthesize quarterly earnings reports into an investment thesis for a venture capital portfolio review

Archetype: Summarizer Tier 2

Context

A venture capital firm is conducting a quarterly portfolio review and needs to synthesize earnings reports from 8 portfolio companies into a coherent investment thesis. The analyst must distill large volumes of financial data into a concise, decision-enabling summary that highlights key trends, risks, and reallocation opportunities for the investment committee.

Before (Unstructured)

"Synthesize quarterly earnings reports into an investment thesis for our VC portfolio review."

What is missing

× No analyst role or expertise level specified
× No portfolio details — how many companies, which sectors?
× No synthesis methodology — how should data be structured?
× No output format or length constraints defined
× No quality criteria for the investment thesis

After (MOTIVE-Structured)

[M] Motivation

As a senior investment analyst at a Series A-B focused VC firm, I need to synthesize Q3 earnings data from 8 portfolio companies because the investment committee requires a cross-portfolio thesis to inform Q4 reallocation decisions.

[O] Object

Deliver a 5-page investment thesis with executive summary, per-company performance snapshot, cross-portfolio trend analysis, risk flags, and reallocation recommendations. Success criteria: (1) All 8 companies covered with standardized metrics, (2) At least 3 cross-portfolio trends identified, (3) Each recommendation linked to specific data points.

[T] Tool

Use the Pyramid Principle (Minto) for thesis structuring. Apply MECE framework for trend categorization. Reference standard VC metrics: ARR growth, burn rate, runway, NDR, CAC/LTV ratio.

[I] Instruction

1. Extract key financial metrics from each company report (ARR, growth rate, burn, runway). 2. Categorize companies into performance tiers (outperform, on-track, underperform). 3. Identify 3-5 cross-portfolio trends. 4. Flag companies requiring intervention. 5. Propose 2-3 reallocation recommendations with data justification. If data is incomplete for a company, note the gap and exclude from trend analysis.

[V] Variables

Portfolio: 8 companies, B2B SaaS (5), fintech (2), healthtech (1). Stage: Series A-B. Audience: Investment committee (3 partners). Format: 5-page memo with data tables. Tone: Analytical, evidence-based, concise. Include: Quarterly comparison (Q2 vs Q3). Exclude: Public market comparables, macro-economic forecasting.

Output Comparison

Before Output

The portfolio companies had mixed results this quarter. Some companies grew well while others faced challenges. Revenue was generally up across the portfolio. There are opportunities for growth in several areas. We should consider our investment strategy going forward.

Show full output

The portfolio companies had mixed results this quarter. Some companies showed strong growth while others faced significant headwinds in their respective markets. Overall, the picture is one of cautious optimism with some areas requiring attention. Revenue was generally up across the portfolio, with most companies showing positive quarter-over-quarter trends. The SaaS companies in particular continue to grow their recurring revenue bases. The fintech companies showed some variability depending on market conditions, and our healthtech investment is progressing through its growth phase. There are opportunities for growth in several areas. Many of our companies are expanding their product offerings and entering new market segments. Customer acquisition continues to be a focus area, with most companies investing in sales and marketing to drive growth. We should consider our investment strategy going forward. Some companies may benefit from additional capital to accelerate growth, while others should focus on improving operational efficiency. The overall market environment remains favorable for our portfolio companies, though we should monitor macroeconomic conditions closely.

After Output

Cross-Portfolio Trend 2: NDR Compression. 5 of 8 companies show declining Net Dollar Retention (Q2 avg: 118% → Q3 avg: 112%). Root cause: increased churn in SMB segments (3 companies) and delayed enterprise expansions (2 companies). Risk flag: If NDR drops below 110% in Q4, two companies (DataFlow, InsightHub) will need bridge financing by Q2 2027. Recommendation: Accelerate enterprise-focus pivot for DataFlow; schedule board-level churn intervention for InsightHub.

Show full output

**Q3 Portfolio Review — Executive Summary (8 Companies, Series A-B)** **Performance Tiering:** Outperformers (2): CloudMetrics (ARR $14.2M, +42% QoQ, NDR 128%) and PayStack (ARR $9.1M, +31% QoQ, burn multiple 0.8x). On-track (4): DataFlow, InsightHub, FinLedger, HealthSync — all within 10% of plan but showing deceleration signals. Underperformers (2): SalesBridge (ARR $3.8M, -8% QoQ, runway 9 months) and ComplianceAI (ARR $2.1M, missed plan by 34%, CAC/LTV ratio deteriorated to 1.4x). **Cross-Portfolio Trend 1: ARR Growth Deceleration.** Portfolio-weighted ARR growth declined from 38% (Q2) to 29% (Q3). The B2B SaaS cohort (5 companies) drove the decline, with median growth dropping from 35% to 24%. Root cause analysis: elongated enterprise sales cycles (average deal close extended from 47 to 68 days across 3 companies) and increased competitive displacement in the mid-market segment. **Cross-Portfolio Trend 2: NDR Compression.** 5 of 8 companies show declining Net Dollar Retention (Q2 avg: 118% to Q3 avg: 112%). Root cause: increased churn in SMB segments (3 companies) and delayed enterprise expansions (2 companies). Risk flag: If NDR drops below 110% in Q4, DataFlow and InsightHub will need bridge financing by Q2 2027. Recommendation: Accelerate enterprise-focus pivot for DataFlow; schedule board-level churn intervention for InsightHub by end of October. **Cross-Portfolio Trend 3: Burn Rate Efficiency Improvement.** Median burn multiple improved from 2.1x (Q2) to 1.7x (Q3), driven by hiring freezes at 3 companies and improved sales efficiency at CloudMetrics. Positive signal: portfolio-weighted runway extended from 14 to 17 months. **Reallocation Recommendations:** (1) Deploy $2M follow-on into CloudMetrics Series B extension — highest capital efficiency in portfolio, positioned for $20M ARR milestone by Q2. (2) Initiate structured exit exploration for ComplianceAI — product-market fit concerns persist after 3 consecutive misses; estimated recovery: $0.6-0.8x on invested capital. (3) Defer SalesBridge bridge round pending Q4 results; set performance gate: must achieve $4.5M ARR and 12+ month runway by Q4-end or trigger wind-down discussion. Timeline: Present recommendations to full partnership by October 15.

Evaluation Scores

Average Before

1.5/5

Average After

4.3/5

Improvement

+183%

Before MOTIVE (1-5)

After MOTIVE (1-5)

Key Improvement

The Object component produced the largest quality impact by specifying standardized per-company metrics, cross-portfolio trend identification, and data-linked recommendations — transforming a vague synthesis request into a structured, decision-enabling investment memo.

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