Main Problem Description: 2023,Fall. —
- Difficulty in tracking startups that are not visible in major databases.
- Limited availability of valuation data for screened companies (only 30-40% have accessible data).
- Need for creating proxies to evaluate startups due to lack of direct data.**
- Challenge in identifying useful metrics to evaluate companies that were previously passed on (anti-portfolio).
- Venture capital firms often miss learning opportunities from companies they declined but later became successful.
Katapult's Anti Portfolio recommended to be based on four main areas:
- Environment
- Human Capital
- Financial Assets
- Social Assets.
Conclusion:
This approach aimed at overcoming the limitations of traditional financial metrics in evaluating startups. By integrating insights from these diverse areas, Katapult can make more strategic investment decisions and identify high-potential startups more effectively.
Key Recomendations
- Stakeholder Engagement: Collaborate closely with primary stakeholders for effective implementation of suggested proxies.
- Integration with Machine Learning Models: Incorporate suggested proxies into existing machine learning models to enhance predictive accuracy.
- Maintenance: Ensure that proxies are continuously updated and refined to incorporate changes within markets and environments.
