VCs Data awakening moment


It’s a fascinating moment to witness the VC industry gradually waking up from its lethargy, as more and more firms are embracing advanced analytical tools and strategies to stay competitive in the market.

Historically, VCs have focused on funding tech companies driven by data and analytics, with the belief (bet) that these startups can quickly dominate their respective markets and grow exponentially because of the edge their tech brings and the nature of it to revolutionize their industry. However, it’s been surprising to see that many VCs themselves haven’t adopted the same data-driven mindset and tools internally.

Relying on outdated tools like virtual notebooks, show-and-tell collages, and glorified accounting books (A.k.a. Ms Word, PowerPoint, and Excel) just doesn’t cut it anymore. The game has changed, and to thrive in this new era, VCs need to adopt the best analytical tools and strategies to make smarter decisions.

As AI continues to revolutionize industries across the board, the VC sector is no exception. Embracing data analytics and advancing their analytical capabilities in a structured manner can enable organizations to become industry leaders and gain an advantage as analytical competitors. The Delta+ Model illustrates this process, guiding organizations towards a more mature and data-driven approach. (more about this model to come).

At Katapult, we have taken up the challenge of developing our own analytical capabilities to build a decision-driven data analytics culture. Our goal is to become an analytical competitor, leading the way in the VC industry and demonstrating the immense value that a data-driven approach can bring.

We recognize the immense value that data analytics can bring to our organization. By building our own data analytics capabilities, we aim to gain a competitive advantage, make better-informed decisions, and drive innovation across our operations.

But why investing in our internal data analytics team and not just leveraging on a third party or existing plug-and-play solutions?

Customization and Adaptability: Building our data analytics capabilities in-house allows us to develop customized solutions that are tailored to our specific needs and requirements. This adaptability enables us to respond more effectively to the unique challenges and opportunities we face in our industry, ensuring that our data-driven insights remain relevant and actionable.

Control and Ownership: By developing our data analytics team internally, we maintain complete control over our data and the insights derived from it. This not only protects our sensitive information but also ensures that we can apply our data-driven findings in ways that align with our strategic objectives and values.

Enhanced Collaboration: An internal data analytics team promotes seamless collaboration and cross-functional synergy between different departments within our organization. This helps to break down silos, foster a data-driven culture, and ensure that insights generated by our analytics efforts are integrated into our broader business strategies.

Continuous Improvement: Having an in-house data analytics team enables us to stay at the forefront of the latest trends and technologies in this rapidly evolving field. By investing in the ongoing professional development of our team members, we can continuously refine and expand our data analytics capabilities, ensuring that we remain competitive in the market.

Cost-Effectiveness: While there may be some upfront costs associated with building an internal data analytics team, the long-term benefits can outweigh these expenses. By developing our analytics capabilities in-house, we can reduce reliance on third-party solutions, which may be costly and inflexible, and instead focus on building a sustainable and scalable analytics infrastructure.

Fostering Innovation: Building our own data analytics capabilities encourages experimentation and innovation within our organization. By providing our team members with the freedom to explore new techniques, test novel ideas, and challenge conventional wisdom, we can uncover new insights and drive innovation throughout our operations.

Building our own data analytics capabilities at Katapult is a strategic decision that positions us to harness the power of data-driven insights more effectively. By investing in our internal data analytics team, we can better adapt to the unique challenges and opportunities we face, maintain control over our data, and foster a culture of continuous learning and improvement.

Humberto Trevino is Katapult’s AI & Data Analytics Director. Interested to learn more about the Data-driven VC landscape? Follow Humberto on medium.

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