Venture-Capital Firms Use Big Data to Seek Out the Next Big Thing by Alexander Davis

TL;DR - Some VC firms are turning to big data to help evaluate potential investments.

Helpfulness - 4

Tags - notable investors, future vc

Questions addressed:

  • How are VC firms harnessing big data?
  • What could this mean for the future of venture capital?

Summary:

  • Like Wall Street trading, Silicon Valley startup investing is starting to become more computerized.
  • Early-stage VCs like Signal Fire, Correlation Ventures, and NFX Guild use proprietary databases and data science methods to source and evaluate investments.
  • Signal Fire also uses data analytics to help portfolio companies find and attract talent.
  • Most of these firms are in their early stages, so time will tell if big data will be as successful in VC as it has been in other areas of finance.

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