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Lessons Learned From Digitization Journeys at Atomico, Balderton, Earlybird, Inflection, and More
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Lessons Learned From Digitization Journeys at Atomico, Balderton, Earlybird, Inflection, and More

Insights from "Venture Intelligence Day" Part I of II

Andre Retterath's avatar
Andre Retterath
Nov 07, 2024
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Lessons Learned From Digitization Journeys at Atomico, Balderton, Earlybird, Inflection, and More
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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 29,430 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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Few weeks ago, I gave a keynote speech about ā€œAI in VC: Outlook for 2025ā€ at Vestberry’s Venture Intelligence Day in Prague. For those of you who couldn’t join, I shared my slides here. Shortly after publishing them via the newsletter, I received several DMs asking for key insights from the other conference sessions.

Thankfully, our friends at Vestberry 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

For those of you wanting the key takeaways of the respective sessions, I’m happy to write this episode and share brief summaries including select video snippets from the different talks. Given the density of information, I split it up into two episodes. Today is part I of II.

It’s for everyone interested in the state of digitization in venture capital, and how data & AI change the game end-to-end across the value chain, from sourcing over screening to portfolio value creation, fundraising, LP and investor relations, to back office functions, and more.

10 Key Takeaways (Part I of II)

  1. ā€œPortfolio intelligence is a missed opportunity for VCsā€

  2. ā€œStrong need for a single source of truthā€

  3. ā€œJust as it is now impossible to envision working without spreadsheets, soon, you will find it unthinkable to make decisions without structured dataā€

  4. ā€œImportance of setting clear data expectations with portfolio companies early onā€

  5. ā€œAt later stages with fewer opportunities and higher investment volumes, white glove service and personal interactions remain important. At earlier stages with more deal volume and smaller investment volumes, however, automating interactions is the only way to goā€

  6. ā€œImportance of starting with SaaS solutions and refining these before building proprietary toolsā€

  7. ā€œIt’s key to create a data-driven culture through systematic training and transparency, fostering an environment where data supports every layer of decision-making across investment, fund administration, and LP relationsā€

  8. ā€œIt’s a big challenge to align technical and investment teamsā€

  9. ā€œWhen asked about building vs. buying data systems, all agreed that a hybrid approach works bestā€

  10. ā€œWhile tools can be bought, the core system should be built to reflect each fund’s unique strategy and workflowā€

Session Snapshots (Part I of II)

#1 Future of Portfolio Intelligence

Marek started his talk with a strong statement: ā€œPortfolio intelligence is a missed opportunity for VCsā€. He emphasized that while much time and energy go into deal sourcing during a fund’s initial phase, the ongoing management of investments over the following 4 to 10 years is equally critical yet often lacks a data-driven approach.

Hereof, Marek outlined the fundamental ā€œshift from merely collecting data to truly leveraging it for value creation within portfolio companies.ā€ He highlighted the ā€œstrong need for a single source of truthā€ for portfolio metrics and performance data, noting that ā€œ60% of companies fail because of cofounder issues,ā€ making it essential to identify and act on early warning signals.

With this data, VCs can ā€œdouble down onā€ the right companies and support them strategically. This approach, Marek said, enables VCs to not only manage risks but also actively assist portfolio companies through market insights, strategic partnerships, and hiring.

ā€œJust as it is now impossible to envision working without spreadsheets, soon, you will find it unthinkable to make decisions without structured dataā€ he said, envisioning a future where data and AI become core strengths that set VCs apart.


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#2 Portfolio Value Creation

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