Thinknum Alternative Data
Request Demo
Thinknum Login
Questions answered using Thinknum

Fundamental Investors

How many cars has Carmax sold this week compared to the same week last year?

How is foot traffic at Chipotle changing YoY?

What are the industrial companies that are growing and hiring the most?

Quantitative Analysts

How are the number of Twitter followers a leading indicator for company performance?

How are the number of LinkedIn employees a leading indicator for company performance?

Business Inteligence

Which private companies are getting their products picked up by major retailers?

Which private healthcare companies are hiring the most?

Which tech startups are getting the largest increase in mobile app downloads?

Join the investment community and start your week with market insights seen through the lens of alternative web data.

EXDC: Private investors are using external data to sort out winners and losers

2 weeks ago by Jon Marino in Consumer, Retail

Private equity and venture capital investors are increasingly turning to alternative data and external data to better sort out investment opportunities, a group of investors told attendees of Thinknum's first annual EXDC, our external data conference. 

It's a nascent field within a crowded investment field, and speakers on Thinknum's 'How Venture Capital and Private Equity Firms Use External Data' panel on November 5 say that while they're able to improve their deal-flow processes through alternative data, the challenge is that they are still doing the heavy lifting themselves. 

“You’re going to have to do a lot more manual work to make sure you’re doing this right," said Amit Bhatti, who is principal with 500 Startups. “There are VCs that think they’re above that."

Private equity and venture capital investors alike on EXDC's investor panel note that - while there is limited technology to bolster private investing analytics - many of today's top investors are working at a time when their business is in a transitional stage. 

“Full automation is hard," Rebecca Yu, Healthcare Investor at BelHealth Investment Partners, told panel moderator and Coindesk editor John Biggs

Being able to track factors like product pricing, job listings, hiring - even analyzing when senior executives begin to quit a company after an M&A deal - are creating insights on a new level previously unavailable to venture investors, even recently. 

“Just looking at product reviews is really insightful," Bhatti said, offering yet another example. 

Alessio Fanelli, Director Of Engineering at 645 Ventures, agrees. 

“There are certain signals that are a pretty good indicator” of a company’s health, he said at EXDC. Still, he added, "a lot of it is still gut-driven.” 

About the Data: 

Thinknum tracks companies using the information they post online - jobs, social and web traffic, product sales and app ratings - and creates data sets that measure factors like hiring, revenue and foot traffic. Data sets may not be fully comprehensive (they only account for what is available on the web), but they can be used to gauge performance factors like staffing and sales. 

Further Reading: 

Join the businesses who have begun to edge out competitors by scouring the web for alternative data.

Request demo
Ready for a personalized tour?

Jon Marino

Jon Marino is Thinknum's finance editor, covering the impacts of alternative data on public companies and investors. Prior to joining Thinknum, Jon worked in the ...

Request a demo

We would love to show you how Thinknum will benefit your investment process. To get started, fill out the form and we'll contact you shortly to schedule your demo.

Get Thinknum Media in your inbox

Start the day off with our Weekly Digest.