Here’s HBR’s take on some of the ways VC and PE firms are deploying an alternative data strategy to gain a competitive edge for their brand and portfolio: 1. Algorithmic sourcing - distilling the novel from the noisy: detecting patterns, trends, anomalies. 2. Due diligence - the old school way is often constrained by time and resources: VCs are deep diving, deploying LLMs to do a full analysis (see pharma example in article). 3. Portfolio company value creation: VCs and talent sourcing, Eg; one VC aggregated Google Scholar, GitHub, Quora, Kaggle, and LinkedIn to identify specialized talent to help assemble strong teams for their port cos to kick (and reach) their goals. Even with AI, effectively harnessing the vast amounts of external data is no small feat. Info is highly fragmented and uneven in quality, and demands dedicated resources and expertise to assess what’s most likely be useful, and navigating the thousands of products on the market. Onwards! #AI #Investing #PrivateMarketInvesting
Great analysis, thank you!
Impressive insights. To further amplify portfolio company growth, consider leveraging predictive analytics for dynamic market entry strategies, targeting underserved regions with tailored products. ManyMangoes excels in identifying untapped markets using geo-specific data analysis and sentiment mining.