Data-Driven VC

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Data-Driven VC
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How Modern Tools Allow You to Outcompete the Most Well-Connected Investor
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How Modern Tools Allow You to Outcompete the Most Well-Connected Investor

Insights from "Venture Intelligence Day" Part II of II

Andre Retterath's avatar
Andre Retterath
Nov 14, 2024
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Data-Driven VC
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How Modern Tools Allow You to Outcompete the Most Well-Connected Investor
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šŸ‘‹Ā Hi, I’m Andre and welcome to my newsletter Data-Driven VC which is all about becoming a better investor with Data & AI. Join 29,620 thought leaders from VCs like a16z, Accel, Index, Sequoia, and more to understand how startup investing becomes more data-driven, why it matters, and what it means for you.


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Last week, I shared the first batch of key insights and session recordings from the ā€œVenture Intelligence Dayā€. Today is part II of II.

Thanks again to our friends at Vestberry who agreed to make the exclusive recordings available for our DDVC community via our platform ā€œThe Labā€. You can get 40% discount on your membership today and access all Venture Intelligence Day recordings here (together with tons of other resources such as the recordings of our Virtual Data-Driven VC Summit 2024)

Access recordings with 40% discount

5 Key Takeaways (Part II of II)

  1. ā€œEven the most well-connected investors face challenges in ensuring they see every promising dealā€

  2. ā€œPrimary mission is to create a unique data asset, which forms the foundation for all insights across the firmā€

  3. ā€œAI alone cannot replace the intuition and strategy integral to VC decisionsā€

  4. ā€œThe potential lies in using AI tools to enhance efficiency in tasks like information extraction and industry researchā€

  5. ā€œJust as in public markets, knowing which companies exist doesn’t mean all investors make the same decisionsā€

Session Snapshots (Part II of II)

#5 VC Tech Stack Deep Dive at Atomico

Harry, a software engineer on Atomico’s intelligence team, discussed the data infrastructure and tech stack his team has developed to support Atomico’s data-driven approach.

Atomico’s intelligence team, comprising data analysts, software engineers, and data scientists, operates independently to serve all other teams in the firm. Their primary mission is to create a unique data asset, which they treat as a "data product" that forms the foundation for all insights across Atomico.

This data-first approach enables them to provide a single source of truth across core entities—companies and people—and offers insights on aspects like funding rounds, team positions, headcount, and web traffic, aiming to support data-driven decision-making across the entire VC lifecycle.

Harry explained Atomico's tech stack and tools, emphasizing DBT as key for orchestrating data transformations within their data warehouse. This stack supports Atomico’s various data applications, including Looker, which enables teams to visualize data and create dashboards for self-service access.

For sourcing and analysis, Atomico also leverages machine learning models for predictive insights, such as predicting a company’s likelihood of raising funds soon or gauging team strength. Additionally, they’re integrating LLM capabilities, using tools like Glean for indexing unstructured data, which feeds into tools like ā€œDora,ā€ an automated briefing generator that consolidates all company data for internal use.

By focusing on both structured and unstructured data, Atomico aims to make their data ecosystem accessible and actionable for all teams, driving consistent engagement and up-to-date records.

When discussing Atomico’s approach to building vs. buying tools, Harry noted their preference for investing in custom-built tools that allow greater control and flexibility, especially as off-the-shelf options evolve to meet VC needs. For example, they use a CRM and Glean to manage emails and document indexing, respectively, but they avoid sourcing tools that result in founders being inundated with redundant messages.

Harry emphasized that while many tools are advancing in capabilities, Atomico’s priority remains direct access to raw data, allowing them to leverage machine learning models that maintain Atomico’s competitive edge and ensure a tailored approach to data-driven venture investing.


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#6 Impact of AI on Deal Sourcing

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