By Sergei Mosunov
The concept of data-driven VC (Part 9)
I continue my notes on the topic of automation of investment decisions, about digital intuition.
In the meantime Wale.ai has come a long way looking for a business model and what product to go to market with. It turned out that sentimental analysis of news and search for signals in the market is the most expected and still missing. So, for example, with an increase in the volume of site visitors and an increase in the company’s mention in the media, as well as the appearance of mentions or reposts of news from the CEO of the project by some angels, the system could issue a signal that can be interpreted as “important”, and the company would appear on dashboard of the investor marked "Study in detail".
Another important part of the product could be finding the “right” founders, and there are many different approaches to valuation, of which I liked Ali Tamaseb’s study, where he breaks down 50 signs of the “right” founders who built billion-dollar companies. (https://lnkd.in/dziANHhx)
Then, one could look at early investors such as The Garage Syndicate or business angel entrepreneurs. Mentioned in this study are Elad Gil (Mixer Labs, Color Genomics), David Sacks (PayPal, Yammer), Biz Stone (Twitter), Peter Thiel (PayPal), Alexis Ohanian (Reddit), Mark Benioff (Salesforce), Matt Oko (Yes Vinci), Kevin Hartz (Eventbrite) and many others. Such founders are also successful business angels, but it is only possible to monitor their investment activity through automated systems because there are a lot of such people, and it is even better to track when several of these angels entered into one of the early transactions.
  1. And we can also recall the study conducted by Andre Retterath and Reiner Braun, where they described information asymmetry, when founders provide the market and investors with exaggerated indicators and try to be better than they are, while investors are trying at this time to find reliable information about the market and companies, and because of the difference in numbers and expectations, there is an additional risk, which is covered by excess venture capital. (You can read more here: https://lnkd.in/dwv_2Wy6.)
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