How should vc firms use information systems / big data to maximize performance?
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VC is one of the most information intensive businesses. If you have perfect information, you minimize risk and maximize returns. Reality is far from it - no VC deal has perfect information. What tools could/are VCs using to optimize their decision-making?
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Answer:
Danielle Morrill (formerly CEO of Referly) just started a company called Mattermark, http://www.mattermark.com/ where her team has created a big data play. They have a newsletter that goes out for free that details rankings and traction for startups. They have a ranking system and a way of collecting data to determine ranking. It is an interesting read to see what startups you have never heard of that are doing really well and what ones that everyone is talking about that is just hype. Also a lot of the companies that are doing the best are not in SV, but NYC.
Ben Rodda at Quora Visit the source
Other answers
How about automatic analysis before finding a startup, before investing in them and post investment when they are a portfolio company? I recently invested in here in London, UK. Bright*Sun is using smart algorithms on loose data to help VCs and private equity firms find dealflow and monitor their portfolios faster and better. The unique part of their offering is that it is the only platform to pair analytics and algorithmic sourcing while others simply consolidate or aggregate data. see more on why i invested here: https://medium.com/philosophy-logic/a689e76d77c1
Paul Heydon
Finding people with the right skills to manage their companies and deliver the results, rather than looking for industry average profiles, which leads to a lot of Zuckerberg lookalikes but not a great improvement in performance. This solution is a mix of crowdsourcing and big data, and moves away from job descriptions and filtering CV's towards database matching of skills profiles with validated skills and competences. There are a couple of platforms, the Indian government commissioned one, but the one I prefer is iQ4. It is currently targeted at colleges, with students being offered real-world work-related challenges that test and validate their various skills, including soft skills. NASA is a user and it is currently getting a lot of attention in the cybersecurity community.
Tom Foale
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