If you think you can be a successful VC investor based on the old school philosophy of having a strong network, think again. The more advanced VCs these days have already started to build in-house teams of data scientists, generating high volumes of data to source attractive investment targets ahead of the competition. In order to generate top quartile returns, you will have to build your own data-driven deal sourcing methodology. At Venture IQ, we unlock the power of big data to all VCs through our platform Catalist: a customisable deal flow generation platform for VCs that want to stay ahead of the curve. It is built on the premise that the earliest bird with the best data gets the right focus and the worm.
“In order to generate top quartile returns, you will have to build your own data-driven deal sourcing methodology.”
Key platform components
To build a powerful data-driven deal sourcing methodology, there are three things you want: A seriously large set of companies, a process to discover high quality leads and, regardless of the solution, you want it integrated in your existing stack. This is how Catalist will help you on these three points:
Early stage investors’ chance to get in first
The first version of this new platform will be launched over the coming weeks and is aimed at pre-seed/early stage investors. Currently, the platform discovers recently set up software companies and enriches their profiles with information from the corresponding company websites and publicly available online sources. All companies are easily searchable on Catalist without complicated rules, just on their website text. On top of that, we make it easy to monitor your searches and quickly assess new companies with a ‘Tinder-like’ interface as they get discovered. This is going to be a huge benefit for accelerators and seed investors, as we estimate our platform to generate about 3,000 software start-ups per month.
And this is only the beginning..
Venture IQ will soon unlock patent data, RSS feeds, Twitter hashtags, and subsidy databases and many more. In addition, we will start integrating with established data providers to enrich your data and with popular CRM systems to manage your deal flow and pipeline. This will make Catalist a key tool for a broader audience, such as later stage investors, corporate innovation teams, R&D teams and entrepreneurs aiming to keep track of their competitive landscape.