The Types and Uses of Startup Data
By TOI Staff January 19, 2023 Update on : January 19, 2023
Startups are exciting ventures not only for the people in them but for everyone watching as well. And there will be people watching when a promising startup is around. Other companies, market analysts, and of course, investors are always on the lookout for new firms with limitless growth potential. The way to keep track of such firms is by looking at the data. A high-quality startup dataset might turn out to be priceless by helping to identify a rising star early on. Thus, let us dig deeper into the concept of startup data and how this type of information is used.
What is startup data?
Firstly, let us go over what kind of information can be extracted from such datasets. Everything that relates to particular startups and the people involved can be defined as startup data. However, there are types of information that you will most likely be interested in when researching the startup market.
For example, you will certainly want to know as much as possible about the personnel involved. The founder of the startup is especially important since they might already have a proven track record. Startup founders sometimes go on working on other projects after successfully raising a startup. If the founder has already started what is now a unicorn before, you might want to look at their current project especially closely.
Other personnel is, of course, also very important. Thus, startup data should include both the number of people working in the firm and as much about their qualifications as possible. The more you know about the education, job experience, and other features of the people in the startup, the better you can approximate its potential.
Naturally, all types of firmographic data are also part of startup data. Thus, such datasets will tell you about the location and assets of the startup company. Crucially, startup data can also inform you about the financial situation of the firm and where the funding comes from.
Other types of data can be included in the datasets on startups to give you a deeper understanding of the company. For example, for tech startups, information about their own technological capabilities is especially important. All this data can be used in combination with other alternative data types to customize your own analysis of the market.
Watching out for the unicorn
Successful startups are the future of industries and possibly even of the way we think about business. Identifying them early on can help almost anyone share in their success.
For investment fund managers, this is, of course, the whole point of their daily job. This is, however, no easy task, given the fact that new startups are appearing and disappearing all the time. Betting on the rise horse requires knowing everything to is about where it comes from and who takes care of it. Therefore, fresh and reliable startup data is something investors constantly need.
This is especially true since many startups operate in stealth mode for months or even a couple of years. It is quite understandable that companies with great ideas try to stay under the radar in order to avoid competition. There is, however, no way to completely avoid generating data – every movement leaves some tracks. Thus, startup data can show initial signs of something going on that further investigation will reveal to be a great investment opportunity.
You will also want to watch out for any potential unicorns if you are a competing company in the same field. Stealth mode startups are always a threat that needs to be assessed. Startup data is exactly the way to do it. By analyzing information on what seems to be going on underground, you will have a rich competitive intelligence that will allow preparing for what is coming.
Startup data is also crucial for any type of market research that wants to see further into the future. If you are considering starting a company yourself, you need to know what is already going on. Ideally, you would want your company to be the product of not today’s but tomorrow’s market. And to have an insight into what that market is going to look like, you need to know what sort of companies are going to shape it.
Even companies that have been in business long should look into startup data for insights into what is going to change. The firm’s longevity depends on its ability to adapt to changing market conditions. Seeing signs of change early gives enough time to adjust the business model or even find new industries to explore.
A few final words
Startup data is a varied and constantly developing type of alternative data. As startups are all about innovation, one can expect new types of data about them to emerge constantly. Thus, while on the lookout for new startups, also keep an eye on what is going on in the data world. Innovation and information go hand in hand.