Why Now? The Venture Process Is Ready for an Upgrade (Sebastian Soler)

Sebastian Soler argues that venture firms, whose main asset is their network, should apply modern technology to managing it.

Why it was kept

Kyle tagged it Data in Investing and Talent Networking. His excerpts keep the core claim (VCs are limited by Dunbar’s number and generic CRMs like Affinity can’t index a network deeply enough) and the list of automated recommendations a better system could make: diligence, customer introductions, portfolio advisors, recruiting matches, network introductions and email sorting.

As Kyle captured it

• Read The venture process is finally ready for a revolutionary upgrade. Why Now? by Sebastian Soler Data in Investing Talent Networking
  • VCs know their greatest asset is their network… yet few apply cutting edge technology to their network process. Most VCs are plagued by Dunbar’s number; relying on memory & adversely affected by recency bias, thus underutilizing their network.
  • A CRM like Affinity can’t scale their NLP indexing beyond basic tags because it is not economically viable for their business… and the other industries they focus on like Real Estate & Enterprise Sales don’t benefit from additional indexing.
  • Automated recommendations for
    • Diligence
    • Customer introductions
    • Portfolio advisors
    • Recruiting matches
    • Network introductions
    • Email labeling / sorting
  • It’s time for VCs to invest in applying technology to upgrade their process. Many of the top firms have already started. We’d love to help.