Anand Sanwal, CB Insights // What's Next? from FirstMark Capital
Anand Sanwal, CB Insights // What's Next?
- 1. CB1#DATADRIVENNYC@CBINSIGHTS CBINSIGHTST WHAT’S NEXT? AND LESSONS LEARNED BUILDING A DATA COMPANY SEPTEMBER 8, 2015
- 2. CB2#DATADRIVENNYC@CBINSIGHTS CBINSIGHTSTM CB Insights is a National Science Foundation backed company that uses data to provide VCs, corporate strategy, M&A teams and business development professionals with intelligence on emerging companies and disruptive technology trends. CB Insights is based in NYC, is revenue-funded with an amazing talented team and growing like a weed. To see how our data can make your life easier, visit www.cbinsights.com www.cbinsights.com [website] @cbinsights [Twitter] @asanwal [Twitter]
- 3. CB3#DATADRIVENNYC@CBINSIGHTS ABOUT US #560 A few of our customers... Mentioned by media over 500 times this year
- 4. CB4#DATADRIVENNYC@CBINSIGHTS Revenue-funded Profitable & growing like a weed 24 people at the end of 2014 53 now and 70 by year end
- 5. CB5#DATADRIVENNYC@CBINSIGHTS What’s Next? In God we trust, all others must bring data
- 6. CB6#DATADRIVENNYC@CBINSIGHTS PROBABILITY TRUMPS PUNDITRY
- 7. CB7#DATADRIVENNYC@CBINSIGHTS WE’VE SEEN IT PLAY OUT IN OTHER FIELDS USING PREDICTIVE ANALYTICS Political Forecasting Professional Sports
- 8. CB8#DATADRIVENNYC@CBINSIGHTS BUT MASSIVE BUSINESS DECISIONS STILL RELY ALMOST EXCLUSIVELY ON PUNDITRY • Who do we acquire? • What’s the next big high-growth industry? • Who is our next customer? • Which startups/emerging threats might be disruptive to our existing business? • What is our competitor’s strategy and likely next move? • Which emerging business models, products, companies are gaining momentum?
- 9. CB9#DATADRIVENNYC@CBINSIGHTS CUZ TODAY, WE RELY ON MBAS • Management consulting • Industry analysts • Sundry advisors
- 10. CB10#DATADRIVENNYC@CBINSIGHTS AND SO DECISIONS GET MADE LIKE THIS Predictive analytics is not about replacing intuition but challenging and augmenting intuition
- 11. CB11#DATADRIVENNYC@CBINSIGHTS YOUR NEXT GREAT INVESTMENT (OR THREAT) To find out which companies might be next to ascend, CB Insights, which tracks venture capital and start-ups, conducted an analysis for The New York Times. CB Insights used a proprietary software tool called Mosaic, which analyzes dozens of factors about a start-up, including the amount of money raised by a company, employee turnover, news and social media mentions, awards, customer growth and partnerships. It also examines the overall health of the industry in which the start-up competes, as well as what can be known about the quality of a company’s investors. CB Insights won a grant from the National Science Foundation to build Mosaic, using machine learning and data science to turn unstructured text into a quantitative tool to measure company health.
- 12. CB12#DATADRIVENNYC@CBINSIGHTS MOSAIC - MONEYBALL FOR STARTUPS Can we solve the thin file problem? Score companies on the 3 Ms • Market • Money • Momentum
- 13. CB13#DATADRIVENNYC@CBINSIGHTS YOUR NEXT ACQUISITION
- 14. CB14#DATADRIVENNYC@CBINSIGHTS THE NEXT HOT MARKET - FOLLOW THE MONEY
- 15. CB15#DATADRIVENNYC@CBINSIGHTS THE NEXT HOT MARKET – GOING BEYOND MONEY Bring in other factors to identify hot, emerging industries: • Money • Media sentiment • Chatter (news & social media) • Hiring activity in the industry • Quality of investors • Size & quality of acquirers • Past exits
- 16. CB16#DATADRIVENNYC@CBINSIGHTS THE NEXT HOT MARKET – SPOT THEM EARLY Get alerted here
- 17. CB17#DATADRIVENNYC@CBINSIGHTS YOUR NEXT CUSTOMER Sales processes are hopelessly antiquated • Company similarity engine • Ideal prospect profile to identify more companies like those • Identify the lead and then give you ongoing intelligence to nurture that lead until they become a customer
- 18. CB18#DATADRIVENNYC@CBINSIGHTS WHAT’S NEXT FOR YOUR COMPETITORS?
- 19. CB19#DATADRIVENNYC@CBINSIGHTS WHAT’S NEXT FOR YOUR COMPETITORS? The Business Social Graph showed Goldman’s bets in blockchain and bitcoin vs peers like JP Morgan Chase who’ve not made moves in the digital currency space.
- 20. CB20#DATADRIVENNYC@CBINSIGHTS LESSONS LEARNED BUILDING A DATA COMPANY Your mileage may vary (these are not rules)
- 21. CB21#DATADRIVENNYC@CBINSIGHTS COMMUNICATE WITH PEOPLE LIKE THEY ARE
- 22. CB22#DATADRIVENNYC@CBINSIGHTS IF YOU’RE SELLING B2B, DON’T BE THE LOW-COST PROVIDER
- 23. CB23#DATADRIVENNYC@CBINSIGHTS DATA AND CONTENT ARE GREAT TO GET ATTENTION
- 24. CB24#DATADRIVENNYC@CBINSIGHTS DON’T BUILD IN SOMEONE ELSE’S SANDBOX “Don’t be a Google Bitch, don’t be a Facebook Bitch, and Don’t be a Twitter Bitch. Be your own Bitch.”
- 25. CB25#DATADRIVENNYC@CBINSIGHTS WE’RE NOT SELLING DATA. WE’RE SELLING WHAT DATA ENABLES. Look good in front of your boss, customers, partners, etc.
- 26. CB26#DATADRIVENNYC@CBINSIGHTS GOD ALGORITHMS ARE TOUGH TO SELL (ESPECIALLY RIGHT OUT OF THE GATES) Build trust & credibility with your data over time. Offer visibility into how the algo works and it’s drivers. Then predictive analytics and God algorithms become more practical.
- 27. CB27#DATADRIVENNYC@CBINSIGHTS BIG COMPANIES WHO WANT TO “PARTNER” BUT HAVE NO MONEY ARE A WASTE OF TIME “Joint value creation”
- 28. CB28#DATADRIVENNYC@CBINSIGHTS Distribution partnerships sound good but... they almost never work
- 29. CB29#DATADRIVENNYC@CBINSIGHTS ONCE YOU HAVE DATA, CUSTOMERS WILL TELL YOU WHERE THEY WANT YOU TO GO
- 30. CB30#DATADRIVENNYC@CBINSIGHTS CBINSIGHTSTM CB Insights is a National Science Foundation backed company that uses data to provide VCs, corporate strategy, M&A teams and business development professionals with intelligence on emerging companies and disruptive technology trends. CB Insights is based in NYC, is revenue-funded with an amazing talented team and growing like a weed. To see how our data can make your life easier, visit www.cbinsights.com www.cbinsights.com [website] @cbinsights [Twitter] @asanwal [Twitter] If you’re interested in tech, what’s next, startups, VC, etc., join 98,000 others and get our free newsletter. www.cbinsights.com/research-newsletter Questions or want this presentation?
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