CEO, interrupted

Fancy new maps.
Corporates pass on blockchain. CEOs get fired.

July 17, 2019

Here comes the nonsense

Hi there,

Every year, for 24 to 72 hours, the idea of data-driven or algorithmic VC becomes a thing.

It's great for folks raising $$ from LPs cuz it sounds fancy and makes them sound smart. And some LPs seem to fall for it.

However, it’s 99.9% BS marketing. Data-driven VC mostly takes a very narrow view of how data can be used in VC.

If we break down the VC circle of life, the marketed data-driven VC primarily focuses on seeing deals. And this is only 1 part of the venture process, as you can see here.

Here are 21 data-driven strategies to improve every part of the VC life cycle. More on that below.

BUT FIRST, SOME RESEARCH.

Where do we go now?

Last year was tough for blockchain, but so far in 2019, the space is showing the signs of a rebound.

Market uncertainty is still high, but new developments like Facebook's Libra project have given it a second wind.

We take a look at major investment trends in the blockchain space and where it might go from here. Check it out.

Bye, bye, bye

CEOs can have a hard time acknowledging the threat of a new technology or insurgent company. Some of them come to their senses — and some of them get replaced.

From IBM to Blockbuster to Barnes & Noble, we break down some of the most memorable CEO oustings in recent years and where their companies are now.

I'll sit this one out

Corporate participation in blockchain deals has seriously declined in 2019, with only 96 corporate deals so far.

At these rates, the space is on track to hit a 36% decrease from last year's 302 deals. We take a closer look at investment trends in blockchain here.

THAT SWEET, SWEET DATA

The state of most algo VC

Anyone can build a cr^p model using web traffic and number of twitter mentions and call it algo VC.

“Oh look — web traffic jumped. Let’s reach out.”

And some folks with some marketing chops can dress that up as being some ML/AI nonsense. And for the most part, that is what data-driven VC is.

My favorite “algo VC model” is following on when Sequoia or Benchmark or a16z invest. It’s genius. #datascience

Stay cool

Tickets for Future of Health (Oct. 2-3, NYC) are hotter than NYC temps. Here are a few reasons why:

We combine our data with breaking news from our speakers.
Speakers aren’t paying to get onstage and sell to you.
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You'll be able to engage in unlimited 1:1 meetings with other senior-level attendees.

Save $500 on your Future of Health ticket with code saveoneforme until EOD July 19.

Data in VC actually can be powerful

To be clear, I'm not saying data-driven VC can't be done.

I'm saying that 99.9% of the folks who say they do it are nonsense.

The 21 strategies detailed here show how data can be used in relatively pedestrian ways to help VCs make decisions. The reality, however, is that VCs stand to benefit the most from using data in these basic ways before they get into algorithms and AI.

Walk before we run and all that good stuff.

Of course, algorithms and AI are much better for getting press and separating gullible LPs from their money.

And finally, we’re not a VC (breaking: ChubbyBrain Ventures is not real), but we’re pretty good with data.

Here’s how we think about using data to understand startup health, and here are our future unicorn predictions with The New York Times, which did pretty darn well (48% hit rate).

CLIENT-EXCLUSIVE RESEARCH

EXPERT INTELLIGENCE

Check the map

Demand for HD mapping tech is surging, and corporates are increasingly discussing its applications for autonomous vehicles and beyond.

We take a look at how HD mapping works and which companies are driving it forward. Expert Intelligence clients can read about it here.

The Industry Standard

Financial Times. Miles Kruppa (@mileskruppa) reports that mega-rounds from VCs have hit a record high and refers to PwC and CB Insights latest MoneyTree Report.

Bloomberg. Yoolim Lee (@yoolimleenews) writes about Visa’s latest investment in Go-Jek and cites CB Insights valuation data.

Skift. Rosie Spinks (@rojospinks) discusses Newark Liberty International Airport’s new agreement with Munich Airport International and quotes CB Insights senior CPG analyst Thomas Sineau (@tsineau).

I love you.

Anand
@asanwal

P.S. We're hiring a VP of revenue operations. Check out the full job description here. If this sounds like you, we'd love to chat.

The Blurb

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New York Times

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ArsTechnica

Cell, cell, cell. Cellular therapies could cure diseases thought to be incurable — if you can afford them.
The New Yorker

Lesson plans. Researchers studied 6 million course syllabi to see how college has evolved over the years.
Fast Company

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