At ValueStream Ventures, we believe in the importance of a North Star, the strategy or focus that helps an investment firm quickly determine whether or not an opportunity is a "fit". For us, this North Star is not an industry or specialty, but a thesis. In our experience, a strong thesis provides clarity to the investment underwriting process, which can easily become arbitrary and subjective without a guiding principle and core focus.
Our thesis centers around the value of data and the importance of teams who can utilize that data well. We developed this focus through countless hours interviewing successful entrepreneurs and engaging deeply with high-growth technology companies, global financial institutions, and quantitative investment managers (who deployed Data Science before there was even a word for it).
This research led to a series of key insights that formed the basis for our thesis:
- Data assets can create defensibility and combat commoditization.
- Data assets can form the foundation for product and platform expansion.
- Data assets can allow for more capital-efficient scaling.
- Intelligent products help enterprises speed up their transition into data-driven organizations.
- Teams with the insight and skills to use data well are surprisingly rare.
- The economic and strategic value of data assets are poorly understood.
When evaluating potential investments, our team digs deep into a company’s data and business infrastructure, and we leverage a proprietary database of data assets that we track across the technology sector to help us identify other companies that may have similar or competitive data assets. When we find a company that has truly unique, valuable data -- and a team that knows what to do with it -- we move quickly. Our team then gets to work helping management accelerate growth and plan for product and/or platform expansion, and we leverage our deep network of investors and corporate development relationships to guide the company to growth financing.
Not only does this thesis provide focus and clarity for our team, it helps us comb through the vast sea of investment opportunities to find great partners for our firm, the teams we’re best equipped to help create superior businesses with lasting growth.
ValueStream Ventures helps teams leverage valuable data assets to create industry-advancing products and services