Data Driven Private Equity Investing: Standardization of Investment Analysis by The Venture Phenome Project

Project OverviewJanuary 2009

whyIn 2008 the United States entered a deep

economic recession.

The stock market is down 40% in 6 months

and the real estate market is in a down

cycle, unemployment is at a 25 year high.

Where will economic growth come from?

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hopeThe responsibility for solving the

economic crisis has been assigned to a

single esoteric concept;

„American Innovation‟.

Small businesses account for over 60% of

US employment.

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needAmerican innovation is strong; Nearly 6

million new companies are created each

year.

Yet, it is highly inefficient; Of the over $50B

invested in new ventures only a tiny

percentage of the companies mature to a

point where they can create real job

growth.

The need for more efficient innovation is

clear, the time is now.

howThe Venture Phenome Project brings the

scientific principles of genetic research

into the field of venture economics.

The Venture Phenome Project will map the

positive and negative genetic and

environmental factors that influence the

success of new ventures to enable both

more efficient venture investing and

operational focus.

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whoThousands of investors, entrepreneurs,

and educators come together to expand

and elaborate upon the existing 80

phenotypes. The first living breathing

venture analysis methodology.

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Excerpt taken from “Returns to Angel Investors in Groups”, a comprehensive study of 539 Angel led investments. Robert Wiltbank, Ph.D. and Warren Boeker, Ph. D., 11/2007.

“Comparing investors who spent less than

the median 20 hours of due diligence and

investors who spent more, shows an overall

multiple difference of 5.9X for those with

high due diligence compared to only 1.1X for

those with low due diligence.”

We are targeting a goal of 500% greater

efficiency creating new ventures.

goal

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nowLaunching in January 2009, the Venture

Phenome Project will test the initial map of

key venture phenotypes.

These phenotypes provide the foundation

for developing both predictive analysis for

investors, and operational guidance for

new venture executives.

The information will be public, what

happens from there is up to you.

Data is currently being collected, and

pools of comparative results are emerging.

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share

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Interactive methodology open to public

debate and comment. Private advisors

lead quarterly review of data, methods, and

direction. Research results are published

in a formal report.

guide

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Vendors utilize the evaluation criteria to

provide comparative analysis of new

ventures. The standardized phenotype

scores powers predictive analysis of new

venture investments.

seeScoring data will be run through several

analysis tools to determine relevant

correlations between phenome elements

and desired outcomes.

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winPhenotype understanding leads to a

significant increase in the successful

gestation of new ventures.

New venture growth enables the US GDP

to expand by over 3% per year.

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www.venturephenomeproject.com

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