Using Big Data to Find Entrepreneurs Before They Start Companies?

By on

budding entrepreneurby Angela Guess

Priska Neely of NPR reports, “With predictive analytics, Amazon can figure out what you’ll buy next, Netflix knows what you’ll watch next and Target can guess if you’re pregnant. In the world of venture capitalism, some firms have used predictive analytics to try to figure out which startups to invest in to make a quick buck. And one firm is taking things one step further (or, actually, backward) by using an algorithm to try to find entrepreneurs before they even start a company. Roy Bahat leads the venture capital firm Bloomberg Beta, which launched in June of last year. He says there’s a lot of competition to buy up entrepreneurs. ‘There are so many companies being started and so many people trying to back those companies that if you don’t start earlier, sometimes you feel like you’re speaking to somebody after they’re already well on their way,’ he says.”

Neely continues, “Bahat’s firm teamed up with the data research firm Mattermark to conduct a study of 1.5 million professionals in New York and Silicon Valley. An algorithm evaluated work history, educational history — information publicly available online. From that, Bahat says, you can deduce a lot: ‘For example, if somebody’s ever worked at a startup that’s backed by venture capitalist then they’re much more likely to start a startup in the future because that’s the world they’ve seen.’ They ended up with 350 of these potential, future founders. In March, these people received an email saying they’d been identified as likely future startup creators and included an invitation to networking events to learn more. ‘Honestly, we had to email some people a few times, because several people thought it was a scam’.”

Read more here.

We use technologies such as cookies to understand how you use our site and to provide a better user experience. This includes personalizing content, using analytics and improving site operations. We may share your information about your use of our site with third parties in accordance with our Privacy Policy. You can change your cookie settings as described here at any time, but parts of our site may not function correctly without them. By continuing to use our site, you agree that we can save cookies on your device, unless you have disabled cookies.
I Accept