What is Asset Management?

Asset Management is a professional service that involves managing a client's investments to meet specific financial goals. This service can be provided by financial services companies like mutual funds, investment banks, or individual portfolio managers. The core function is to grow a client's portfolio over time while managing risk, which involves making strategic decisions about which assets to buy, hold, or sell.

For Startups: While startups are typically focused on raising and deploying capital rather than managing large investment portfolios, understanding asset management is key when dealing with investors. A startup's own assets, such as cash reserves from a funding round, must be managed prudently. A vCFO can help in creating a treasury management policy to ensure this cash is held securely and liquidly, perhaps earning a modest return in low-risk instruments without exposing the company's runway to market volatility.