2min read The Rise of Analytics in Fundraising
Analytics is fast turning into a must-have. It comes under various names– Big Data, Predictive Analytics, and more. Big data refers to the acquisition and management of large data sets. Predictive analytics refers to the brand of data mining concerned with predicting future probabilities and trends. The goal is to find one or two variables to predict an outcome. Some are familiar with the law of large numbers, which says if you perform the same experiment on a large data set, the expected outcome will converge as more experiments are done.
In the investment world, analytics determine where and how much to invest. The goal is to yield the highest possible return. The variables cover the type of investment, the duration, and the amount to invest in each type. The same concept now applies to many other areas.
There are now databases of backers for rewards campaigns. Here’s one example by Krowdster.
For those raising funding, Funding Analytics takes in a large number of potential investors and then determines what factors are the key variables. Since investors change their perspectives, what they look for in an investment will also change.
At its basic level, funding analytics shows you which investors are most likely to invest in your startup or growth company.
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Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: firstname.lastname@example.org