Gut, data and biases in Venture Capital
A version of this post was originally published at the Disruption Corporation blog and can also be read there.
Since the early days of venture capital, the investment process has been based on a combination of gut, people and deal timing. And while data has always been a part of that equation, it never took center stage.
Recently, however, we’ve seen the emergence of quantitative venture capital. Funds and angels collect data on startups and use that data to guide deal scouting and the decision making process. At Disruption Corporation, we stand on the thesis that data can help investors make better decisions. Over the past year, we’ve been working on tools to support that thesis - one of those tools being Indicate.
During this process, we’ve had some time to think...