They say that time and tide wait for no one. Let’s revise that. This time, it’s “time, tide, and technology wait for no one.” AI-driven and human-directed technology have fast-tracked results of anything man desired–from developing anti-Covid vaccines to beating chess grandmasters to facial recognition and language translation.
In business, the private sector is also discovering new worlds of opportunity. New business elites have emerged from startups in cramped garages, and more are coming out without the need to go the traditional path of building a business. TikTok, the social media phenomenon which recorded one billion monthly active users worldwide in 2021, earned about $1.9 billion in 2020.
TikTok did not need to go public because it didn’t need much money. Imagine the number of firms that may even be entirely different enterprise classification but are virtually unnoticed and unknown. You will not find them in Google because information on private firms is mainly unstructured.
The world creates 2.5 quintillion bytes of data per day, 90% of which was created in the last two years. If this wasn’t mind-boggling enough, big data growth statistics from Statista forecasts data creation to surpass 180 zettabytes by 2025 or 118.8 zettabytes more than in 2020.
Unlike information on public stocks and bonds, private data on individual assets, portfolios, and essential activities are difficult to access. This makes private data largely unstructured. According to CIO magazine, 80-90% of data generated today are unstructured.
On the other hand, market intelligence firm IDC foresees tremendous growth in access to unstructured corporate data by 2025. This makes it even more critical for businesses to find the means to utilize these data to gain a competitive advantage.
The usual Google search will not yield sufficient competitive insights nor bring out important details like a firm’s financials. Neither will conventional research tools provide a deeper view of the dynamics surrounding any one firm. On the other hand, legacy datasets cover only a limited number of companies and cannot produce actionable information.
Advances in data science and artificial intelligence have started to revolutionize the private equity industry, making it easier to access corporate data in many parts of the world. There are now more efficient search and discovery platforms and tools that can accurately unearth just the data you are looking for and provide actionable insights to evaluate prospective investments more efficiently.
Tips for Accessing Private Market Data
- Build a cloud-based repository of all data from all functions and portfolio assets.
- Pay attention to companies that need real-time insights to boost their value proposition.
- Use advanced analytics to monitor transactions, ensuring that all decisions and follow-through decisions are on-start.
- Use an alternative search approach such as Cyndx’s Finder to explore and map any market. Finder is an intuitive sector exploration search showing how company X is related to company Y. In short, this advanced search allows you to uncover companies that would have gone undetected.
Tips for Searching in Niche Markets using AI
- Build lists in a niche industry with Cyndx Finder. For precision-driven results, start with a concept search for a specific technical term or industry subcategory, like “genomic sequencing” or “real estate technology.”
- From your initial findings, you can narrow down your search by:
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- Selecting the most relevant firm(s) to run a new Finder search
- Adding more inputs to the search bar at the top. Try combining multiple concepts (for example, “drug development + embryonic stem cells”) to get closer to your ideal target.
Cyndx’s data-driven insights also include growth and financial metrics from deal originator to investor identification. You can excavate insights from data that can increase breadth, speed, and certainty in your investment.
AI and machine learning can improve the ability to source more growth equity opportunities than traditional sourcing processes and proactively identify disruptive companies before the broader markets recognize them.
Cyndx has a proprietary algorithm that can provide a more efficient way for investors and advisors to pinpoint opportunities for investment and acquisition. A benchmarking study showed that as far as predicting the next companies to raise capital, Cyndx’s Projected to Raise (P2R) solution delivers precision with an accuracy rate of 86.1% for companies in the US and 76.9% accurate globally.
With today’s technology, research that would have taken months can now be done in seconds. In time, private markets are expected to be more efficient and less risky.
Experience the transformative capabilities of Cyndx. Schedule a demo today and witness firsthand how this innovative solution can propel your investment banking success to new heights.