Helloform | Gut, data and bias in VC

Gut, data and bias in VC

Posted on Feb 13, 2014

Since the early days of venture capital, the investment process has been based on a combination of gut, people and deal timing. And while data has always been a part of that equation, it never took center stage.

Recently, however, we've seen the emergence of quantitative venture capital. Funds and angels collect data on startups and use that data to guide deal scouting and the decision making process. At Disruption Corporation, we stand on the thesis that data can help investors make better decisions. Over the past year, we've been working on tools to support that thesis - one of those tools being Indicate.

During this process, we've had some time to think about some of the problems when dealing with data and making data-informed decisions. Here are some of the things we learned:

These are still the early days of quantitative venture capital, and as an industry we have a lot to learn. Over the next few months, I'll be posting more about how we use data at Disruption Corporation, and how you can use it too, whether you are investing in startups, or running one.

I'd love to hear your thoughts. Feel free to reach out on Twitter.