Saturday, June 1, 2013

The Quantitative VC

numbersIt's no longer sufficient in venture capital for firms to wait for companies, people and trends to come to Sand Hill Road. Seeing a startup on Demo Day at Y Combinator used to be the pipeline for scouting an early deal. But these days, YC companies are raising from angels before demo days. This is a sign of the times in the venture world. To start competing for deals, VCs have to be prospecting people, companies and trends well before events like Demo Day. And how are VCs trying to do this? Through complex data mining and pattern recognition. In the past two years, Sand Hill Road has seen a number of changes, including the explosion of angel and seed-stage investors, the agency model that Andreessen Horowitz is building, and rise of the operator VC. The latest trend is the role of the data scientist within a firm, and how a firm's data is being used to help VCs scout better deals and entrepreneurs and eventually create better returns for their LPs.

Source: http://feedproxy.google.com/~r/Techcrunch/~3/Rid5WazcHhg/

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