Applying Moneyball and AI to Venture Capital

How Connetic Ventures is using data and technology to increase odds of increasing returns

Earlier this year, we launched Wendal. Wendal is our AI platform that automates the due diligence process for early-stage companies. You can talk to him here: www.wendal.io

Wendal is open to anyone with an internet connection, takes 10-minutes, and allows us to screen 92% of companies that apply… Meaning we focus on 8% of companies that are a good fit for our model, and we are much more likely to write a check too. Wendal is essentially 4–5 MBA educated analysts, except Wendal is self-learning and can recall over a billion data points on command.

Wendal was created out of the need to see more companies due to a lack of sufficient deal flow in our surrounding area. It has evolved over time to include alternative data, proprietary behavioral assessments, machine learning, and more… but that we will save for another post.

We view Venture Capital as the last financial front-tier that will be disrupted by data and technology. Nearly all public market investing is done by computers and eventually so will the private markets.

The argument we hear over and over again (almost exclusively by Venture Capitalists) is: