12 Comments
Sep 15, 2022Liked by Andre Retterath

Very excited that you launched this newsletter. I came across an article about your work in the Handelsblatt a few years ago, which happened to inspire my Master‘s thesis about the impact of data driven decision support systems on VC‘s decision-making. Looking forward to reading more about your thoughts and ideas!

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Sep 15, 2022Liked by Andre Retterath

Great insights but as an industry outsider the abbreviations don't seem too clear from the start. Could you write out the abbreviations once? I read GP as general practitioner...(medical domain) and don't enjoy switching to the search engine myself. Makes a better reading flow as well. Cheers!

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author

Very valuable feedback, thank you. Will make sure to properly introduce abbreviations going forward. As for this post:

VC=Venture Capital

LP=Limited Partners (those investing into VC Funds)

GP=General Partners (those running the VC firm)

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Sep 15, 2022Liked by Andre Retterath

THX for sharing your knowledge Andre.

My 5cts; as VC's are intensely data-driven, how come so few have a formal process (and tools) in place for managing past data? Considering the project-based nature of the business, gathering data on current and past project should be an invaluable resource to the business of investing in and accompanying start-ups and scale-ups.

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Main reason is probably that VCs only gradually introduced CRM systems in the last decade (if at all, some still use xls tables to track their investments) and that the limited sample size allows little structural insights. Think of technologization in VC today as the hedge fund industry in 1970s/1980s, it's just the beginning :)

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Sep 15, 2022Liked by Andre Retterath

unfortunately not all data can be captured in CRM systems either...

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author

..actually just a fraction. This is why we decided to built our own platform that unifies proprietary CRM data with external data sources like commercial databases and alternative data sources

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Sep 16, 2022·edited Sep 16, 2022Liked by Andre Retterath

Thanks for sharing this Andre!

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Absolutely. Actually I am from the same space where we’re trying to build solutions for VCs. Would be nice to have your views!

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Pretty interesting.

Can you also provide info on what the bottleneck at the screening stage is and how different services have tried to tackle them? And if there is a possibility of modularising screening and DD stage. Also how data comes in this picture.

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author

Thanks for your question, will certainly cover this in the next episodes. In short: The bottleneck at the screening stage is that with data-driven sourcing you get hundreds of thousands of opportunities on your radar.. including lots of noise. With existing human screening approaches, it's impossible to consider all relevant info and find the signals that help to cut the wheat from the chaff. As a result, investors spend too much time with the wrong opportunities and the right ones get overlooked or wrongly prioritised. Luckily, there exist more efficient and effective approaches. Stay tuned :)

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I have started to read this newsletter thanks to a friend. And it is really insightful for someone who will start is first internship as junior vac analyst.

Thank you for sharing your knowledge!

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