They built a system that does this at scale: 1) collects and organizes the right data and spits out analysis -- this can be painful from the many times I've done it. Investment banks hire armies of young analysts and pay them six figures to do this at scale 2) made it self-serve for entrepreneurs seeking funding -- not having to do the CRM/pipeline mgmt process associated with private investing is a massive efficiency improvement. VCs hire associates and partners and pay them handsomely to do this at small scale (hundreds of deals seen / year / professional)
As someone who has done a lot of private investing, the value here is obvious and substantial for the investors and the entrepreneurs.
I am not sure if you are aware, but every VC worth its salt has built such a system focused on early- or mid-stage startups by now, or is currently doing so. It's not really anything revolutionary.
It also doesn't seem like they go for a Moneyball approach as you suggested in your earlier comment. They are going for previously undiscovered top startups, and not sub-top startups for 10% of the investment sum (that would be a Moneyball approach).
> made it self-serve for entrepreneurs seeking funding
They built a system that does this at scale: 1) collects and organizes the right data and spits out analysis -- this can be painful from the many times I've done it. Investment banks hire armies of young analysts and pay them six figures to do this at scale 2) made it self-serve for entrepreneurs seeking funding -- not having to do the CRM/pipeline mgmt process associated with private investing is a massive efficiency improvement. VCs hire associates and partners and pay them handsomely to do this at small scale (hundreds of deals seen / year / professional)
As someone who has done a lot of private investing, the value here is obvious and substantial for the investors and the entrepreneurs.