Sublime

In an increasingly competitive environment among Venture Capital (VC) firms, fund managers continuously search for ways to develop an edge over their peers. This realisation has led them to pursue more data-driven approaches and to start diving into the potential of data in investment processes.

The best example of this alternative product is Indie.VC, run by Bryce Roberts. Over the course of 6 years, Indie invested in 40 companies. It held the two key components of limited fund size and gave equity optionality through redemption clauses or equity buybacks. The results are encouraging, with a 51% IRR and 4.3x TVPI, while 87% of the compani... See more

The Venture Capital Method: This method calculates valuation strictly from the viewpoint of investor returns. It works backward from the anticipated sale value, or Terminal Value, of the startup (five or so years in the future). You determine Terminal Value by (1) estimating the company’s earnings in the year of sale and (2) multiplying that number

... See more

Soon most leading firms will employ quantitative evaluations because they need to be competitive. There is an increased demand for alpha in private markets and richer data available.