On data, unicorns and granola bars

  1. A large number of companies to select from.
  2. Large quantities of cross sectionally comparable data about the companies.
  3. The data needs to contain information that is correlated with future outcomes.
  4. The data cannot be readily available and usable for the average market participant.
  1. There are no regulations that require a private firm to disclose significant data about their business;
  2. There are very few industries in which private companies are incentivized by market forces to make data about themselves widely available;
  3. When data is available about private companies it rarely covers a large number of contemporaneously, much less historically, comparable firms.
  1. A large number of companies to select from: There are 500,000 consumer goods companies and retailers in North America.
  2. Large quantities of cross sectionally comparable data about the companies: Distribution, Brand and Category data is available for 100,000’s of companies today and in time-series.
  3. The data needs to contain information that is correlated with future outcomes: We can empirically show it is possible to forecast relevant metrics such as revenue growth using the available data.
  4. The data cannot be readily available and usable for the average market participant: The data comes from hundreds of both public and private sources and stitching it together is a very difficult problem called Entity Resolution.

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Investor; Physicist.

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neil constable

neil constable

Investor; Physicist.

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