case study

Data Science App Empowering Venture Capitalists to Find High-Value Startups

The Client

The client owns a Venture Capital (VC) firm that helps young startups navigate the crucial phase between initial traction and significant growth. The firm makes high-conviction investments in potential startups, dedicating significant expertise to enhancing their chances of success.

Industry

Finance

Tech Stack

Snowflake, Sigma, React, AWS

Country

USA

The Challenges

Earlier evaluating a startup’s potential involved a mix of leadership assessment, market realities, and often, gut feeling. However, data science and analytics are now revolutionizing this process.

As a result, our client wanted an objective assessment of a startup's potential by programmatically analyzing data metrics, financials, and growth rates. Through such assessments, our client wanted to find and invest in high-value startups or founders.

The client already had an analytical app to do the job, but it was built on an old codebase. The security mechanism had multiple issues. The database operations were slow. The unoptimized APIs were not driving quality data from external sources. Such problems led the client to consider rebuilding the application from scratch.

At this stage, the client contacted Capital Numbers. The client requested that we build a data science-powered web app to process billions of startup data from external sources. They wanted the app to serve as the single source of truth for the following operations:

  • Data collection
  • Data storage
  • Data analysis
  • Data monitoring
  • Data reporting
the challenges

We needed a robust cloud data warehousing solution to perform the above operations. Our focus was to ensure super-fast processing of advanced analytical queries to support quick decisions.

Solutions We Offered

Our team began the work by studying the existing analytical app. We found the data sets badly scattered in the existing setup. For example, S3 buckets contained raw data, PostgreSQL contained SQL data, and DynamoDB contained NoSQL data. So, we prioritized organizing all that data in one place using Snowflake.

We chose Snowflake because this cloud data warehousing solution is excellent for storing large workloads of near-unlimited scale. It allows firms to store overwhelming amounts of data economically while dynamically scaling compute resources to meet the demands of active querying processes.

We ran CRON jobs and custom APIs within Snowflake to automate data extraction from external sources. Additionally, we implemented ETL processes to centralize all data in desirable formats for structured analysis.

Next, we had to show the collected data on the frontend. So, we implemented Sigma because it reflects data on a spreadsheet-like analytics interface. Although Sigma resembles a traditional spreadsheet, unlike traditional spreadsheets, it pushes far more complex queries to the data warehouse to return accurate results against billions of data.

solutions

Moreover, traditional spreadsheets have a hard limit on the number of rows. However, Sigma can visualize billions of rows of datasets in seconds, putting no limits on analytics. Sigma also allows calculations to be performed on columns instead of rows, allowing users to work on large datasets without worry.

In addition, once built, Sigma’s reports directly query live data sets to the data warehouse and update them in real-time. So, we didn’t have to manually ingest data pipelines to connect the backend and frontend, which saved us time. We also developed custom React plugins and JavaScript APIs in the Sigma package to power up the frontend.

Once we fully prepared the application for data collection, storage, monitoring, analysis, and reporting, we hosted it on the AWS server. The collaboration required us to push multiple statistical formulas to present the most granular data out of billions of data values.

Technology

Results

Capital Numbers’ work led to the delivery of a data science powered web app that is an order of magnitude larger than regular data-intensive apps. Here’s how the app can benefit its users.

Result Bullet
Centralized Data Access

Venture Capitalists (VCs) can access a single spreadsheet-like interface to view billions of datasets on startups.

Result Bullet
Data Selection

VCs can select by startup size, financial metrics, customer feedback, website hits, competitor lists, etc., to view large data values.

Result Bullet
Data Filtration

VCs can choose to filter data values of, let’s say, the top 50k startups out of tens of thousands for refined analysis.

Result Bullet
Benchmark Analysis

Refined analysis helps VCs benchmark the performances of selected startups.

Result Bullet
Fund-level Data Analysis

VCs can extract fund-level reports of earlier venture funds provided to selected startups.

the Result
Result Bullet
Performance Analysis

Granular reports can help VCs examine the performances of earlier funds over time.

Result Bullet
Risk Analysis

Based on such reports, VCs can evaluate funding risks and take action on course correction.

Result Bullet
Predictive Analysis

VCs remain better positioned to predict the success of startups - when armed with reports.

Result Bullet
Real-time Reports

Real-time reports and predictive analysis help VCs scout high-potential startups.

Result Bullet
Data-driven Investment Decisions

By scouting the right startups, VCs are better prepared to deploy capital wisely and thoughtfully, thus becoming better investors.

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    Frequently Asked Questions

    Based on the information provided about Capital Numbers, here arefive frequently asked questions (FAQs) and their answers

    We offer a wide range of services, including:

    • Digital Engineering: Custom software development, enterprise systems, automation tools.
    • Web Development: Dynamic websites, e-commerce platforms, CMS solutions.
    • Mobile App Development: iOS & Android apps, cross-platform solutions, app maintenance.
    • QA (Quality Assurance): Automated and manual testing for error-free software.
    • Cloud Engineering: Cloud migration, cloud infrastructure management.
    • Data Engineering & Analytics: Data integration, data warehousing, data visualization, predictive analytics.
    • AI/ML/GenAI: AI-driven analytics, machine learning solutions, generative AI applications.
    • UI/UX Design: User interface design, prototyping & wireframing.
    • Emerging Tech: AR/VR development, blockchain development.

    We offer two distinct engagement models:

    • Project-Based Development: Tailored solutions for defined goals, ideal for short-term projects.
    • Dedicated Development Teams: Seamless integration, scalable solutions for long-term partnerships.

    We have clients in various countries, including:

    • USA
    • UK
    • Canada
    • Australia
    • Ireland
    • Switzerland
    • Saudi Arabia
    • Indonesia
    • UAE
    • Israel
    • Italy

    We have received numerous awards, including:

    1. Clutch Top 1000 B2B Companies
    2. Financial Times High-Growth Companies
    3. The Economic Times India's Growth Champions
    4. Dun & Bradstreet Leading SMEs of India
    5. Manifest Global Awards
    6. Clutch Global Leaders
    7. Clutch Champion Awards
    8. GoodFirms: Trusted Choice Awards
    9. GoodFirms: Best Company to Work With

    We were founded in 2012.

    We are ISO 9001 and ISO 27001 certified, demonstrating quality and data security standards.

    We create dynamic websites, e-commerce platforms, and manage content with user-friendly solutions.

    We develop iOS & Android apps, cross-platform solutions, and provide ongoing maintenance.

    We offer data integration, warehousing, visualization, and predictive analytics for data-driven decisions.

    We offer AI-driven analytics, machine learning solutions, and generative AI applications for various needs.

    Innovation, quality, client satisfaction, integrity, and teamwork are core values that guide our operations.

    We aim to become a global leader in digital solutions, continuously innovating and empowering businesses with cutting-edge technology.

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