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Script For PPT Fintech

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Slide 8

So the discussed uses cases can be implemented in various stages of the decision making
process for an investment. The cross symbol in the given table shows which of the following
analysis supports that stage of decision making.

For example -
In Deal Sourcing, network and market analysis can identify new investment opportunities by
analyzing market trends and leveraging their network connections to find potential referrals .

Whereas in first evaluation- when results from network analysis and market analysis is
combined with competitor , pitch deck analysis, team analysis, and conversation analysis help
the VC firm in the to assess whether a startup is a good fit for their investment criteria and
whether it is worth pursuing for due diligence.

But even after so many support available - firms face challenges in implementing these
solutions. Let us see how?

Slide 6 and 7

While conducting secondary research - we found that the implementation of AI solutions in


the later stages of decision making like 1st evaluation or closing stage - can face several
significant challenges - and hence lead to lower adoption of these solutions within the firm.

Firstly, there may be limited historical training data available for team analysis, pricing
analysis, and conversation analysis, which could hamper the accuracy of the results.

Secondly, as the focus shifts from analysing publicly available text-based data that can be
sued for performing either network , market or competitor analysis. - to private data such as
financial, voice, video and softer aspects such as the investor's risk-taking appetite . Access to
such data can lead to privacy and ethical concerns and hence - a potential reason for lower
adoption.

Finally, integrating the results of previous analyses such as network analysis and competitor
analysis into the new analysis and normalizing the data from different sources to form a
comprehensive picture can also be challenging.

Today's companies should view these not as challenges, but instead as opportunities to
innovate and differentiate themselves.

Therefore - we decided to understand how EQTVentures use such solutions.


Slide 8

EQT Ventures is a European venture capital firm that invests in early- and growth-stage
technology companies in areas such as software, digital health, and sustainability, and
leverages AI for investment sourcing, due diligence, portfolio management, and network
building.

1. EQT Ventures is part of EQT, a leading investment firm with over 30 years of
experience. This provides EQT Ventures with a wealth of data and insights, as well as
a proven track record of successful investments and exits data.
2. Secondly it sets itself apart from other AI-based VC firms by integrating AI
throughout its investment process, from decision-making to exiting.
3. Finally - it uses a proprietary platform, known as Mother brain, to identify and
evaluate investment opportunities. This model combines AI and human expertise to
analyse vast amounts of data and provide a comprehensive view of the startup
landscape.

Let’s delve deeper into how motherbrain uses AI to

Slide 9

Motherbrain employs Convolutional Neural Networks (CNNs), a to analyze time-series data


related to companies to inform EQT's investment decisions. It aids EQT Ventures across the
3 major stages in the lifecycle of portfolio companies.

What sets motherbrain apart from other companies is that - it not only uses AI through in
the investmet phase like computing the financial metrics, market trends, and industry
performance but also uses AI for the monitoring the startup post investment as well as for
exit processes. This data that motherbrain has been able to gather in the throughout the
pipeline has made it more efficient for the investors to plan their investments better in
terms of resources, bandwidth and vision.
Probable challenges in implementing AI solutions towards the later stages of VC
investment decision making
1. Amount of data available - historical training data available for team analysis,
pricing analysis, and conversation analysis is less
2. From public text-based to private text, voice, and soft aspect integration - towards
the later stage decision making, most of the use cases require you to analyze less
public data and more private data such as text, voice - data privacy and ethical
concerns as well as integration of softer aspect such as their risk-taking appetite,
resilience becomes harder - hence lower penetration of such solutions in firms.
3. Incorporating previous analysis into the new analysis - incorporating results of the
previous analysis such as network analysis, market analysis, and competitor analysis
into team and conversation analysis results. Normalizing all data with different data
types becomes a challenge.

• EQT Venture success –


• Transparent data – transparency with mother brain
• 30 years of EQT –partners existing - seen the paradigm shift of investment, have
huge data and successful in capturing nuance patterns. Present VC firms which are
adopting are not that old – lack of historical shift information.
• Motherbrain could suggest based on the data that a company will lose its relevance
due to low barrier to market entry (increased competitors)

EQT Partners recognized the significant potential for growth and innovation in the
technology sector and saw an opportunity to create a new venture capital firm focused on
investing in early-stage technology companies

Motherbrain is a tool used by EQT to track the development and growth of companies that
it invests in, rather than just tracking individual investment deals. The tool makes use of
data visualization and accessibility to provide a clear understanding of the company's life
cycle, and it also builds on a shared knowledge base (common corporate memory) and uses
algorithms that have been trained collectively.
This use has made it more efficient for the investors to plan their investments better in
terms of resources, bandwidth and vision.

1. https://www.brinknews.com/how-ai-is-transforming-venture-capital/
2.
3.

EQT Ventures was started as a subsidiary of EQT Partners, a private equity firm with a long
history of investing in growth-oriented companies. EQT Partners recognized the significant
potential for growth and innovation in the technology sector and saw an opportunity to
create a new venture capital firm focused on investing in early-stage technology companies.

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