Andre Retterath published the Data Drive VC Landscape Report for the third year as a result. And for the third year as a result, the report begins with the words: “It is manually, inefficient, not inclusive and biased”. This means the investment process of venture capital companies. Retterath is a partner at Earlybird in Munich and a pioneer in the AI area in the VC business. For years he has been driving the topic of data drives VC (DDVC). In the report on the global “Data Driven VC Landscape 2025”, he takes a close look at the current status and developments of data-driven VC investors. In order to be a data-driven VC, the company must have at least one programmer in the team in addition to investors and portfolio managers and have been shown to develop tech tools internally that improve the investment process.
If the investment process is “(quiet) broken”, as the report says, what has happened in the past three years? How do DDVCs work today and what do founders have to adjust accordingly? We talked to Retterath about current developments.
What has changed?
“Everyone has now understood that private market investing without data and AI no longer works,” explains the Earlybird partner. In the past, however, the data -driven approach was often viewed critically: skeptics complained that qualitative aspects in data models cannot be mapped and important data are not freely available. It looks different today. With the help of artificial intelligence, the Internet can be systematically searched, relevant information can be bundled and evaluated. “Everyone leaves digital footprints that we can use to identify exciting companies at an early stage. Accordingly, we are increasingly reporting to the entrepreneurs and not the other way around,” explains Retterath.
Source: https://www.businessinsider.de/gruenderszene/perspektive/so-nutzen-vcs-heute-ki-und-daten/
