I love the question @aleksizy
1/ To clarify: if someone had the same data as Helio, they would still need to stitch that data together using entity resolution, which we’ve found to be an enormously challenging task.
1/ To clarify: if someone had the same data as Helio, they would still need to stitch that data together using entity resolution, which we’ve found to be an enormously challenging task.
2/ Here is more on ER:
[I know you already recognize this challenge, but for others]
circleup.com/blog/2018/05/1…
[I know you already recognize this challenge, but for others]
circleup.com/blog/2018/05/1…
3/ If they cracked ER they would still need to provide more than just data — we think data is interesting, but it’s the ability to transform data into useful *non-commoditized* insights that others can use — be it CPGs, retailers, or investors.
4/ The analytic capabilities that built on top of this data -- descriptive, diagnostic, predictive & prescriptive -- should be powerful far beyond asset mgmt use case.
5/ Reasons to start w/ asset mgmt a) tight feedback loop between technology, portfolio co's, and internal customers (eg investors); b) very profitable business historically (private funds avg 60%+ contribution margins), c) very sticky business.
Feedback loop improves tech.
Feedback loop improves tech.
6/ Also lots of reasons to not do asset mgmt business: a) historical valuations, b) super hard to set up, c) some conflicting requests vs. external customers
7/ Ultimately yes- there is a very meaningful SaaS/DaaS business to be built outside of asset mgmt directly with consumer/retail industry participants. Could be CPG, retailers etc. They are so hungry for non-commoditized insights (IRI is commoditized)
8/ This is a massive industry with stale incumbents (CPG) that are getting killed from below.
9/ And one where those CPG incumbents have customers (retailers) that are actively trying to replace them with more innovation (see assortment pt below)
10/ Lots of dynamic change throughout industry impacting meaningful market cap, but very little information transparency.
They are hungry for a SaaS/DaaS product that is not commoditized and can drive insights to impact these challenges.
They are hungry for a SaaS/DaaS product that is not commoditized and can drive insights to impact these challenges.
