While many investors like to focus on Big Data for insights, we believe that there is no value in “Big.” Value comes from using data to make a better decision. Smart is about turning data into actionable information.
What we look for?
We get excited about thoughtful startups that are effective in solving the Last-Mile problem of connecting analysis to better decisions.
For instance, a power tool in the hands of a sophisticated power user may help correctly identify the decision that should be made, and yet, the organization does nothing with the insights. Or, an unsophisticated user may never be able to even arrive at the insights.
What’s missing from most big data/machine learning/AI applications?
- Alternatives: What can you do differently based on insights from the data? Alternatives usually don't show up in a database; they’re a human creation.
- Values: Values are what you want. For example, revenue, profitability, low-churn. Values, also, don't show up in a database; they’re the result of human introspection.
- A notion of how the future might be different from the past: It takes human intuition to assess when the future is not simply an extrapolation of the past.
We like startups that also score highly on this criteria.