Enhancing AI-based Investing with Public Web Data: Private Equity Case Study

Solutions and use cases

Below are some solutions and use cases utilized by this particular private equity firm.

Signal generation

As the investment market grows, investors can sometimes find themselves lost in a vast and competitive arena of startups and companies ready for additional funding. Specifically, job postings data and firmographics help private equity firms identify up-and-coming startups and other investment-ready companies. 

Our client was able to leverage our employee, firmographic, community and repository, and job postings data to enhance their signal generation, increasing the amount of data coverage they have on startups and growing companies. 

AI-based investing 

According to a 2020 McKinsey Review, the private equity markets added $4 trillion in assets in the past decade. As the private equity market continues to grow, it is more important than ever for investors to leverage AI-based investing technologies to stay ahead of the competition in an increasingly digital industry. 

With our high-quality public web datasets, our client can utilize AI-based technologies to identify key patterns. More specifically, they can fuel their investment models with our rich public web datasets. Their investment models and other AI-based algorithms help them predict market trends and identify insights and patterns about key players and decision-makers.

Investment analysis 

Private equity firms that implement data-driven investment strategies often rely on public web data to extract strategic or operational insights about startups. By analyzing information about a startup’s internal structure and operational tendencies, investors can better understand the companies they might invest in. 

In particular, our client can track growth and analyze the internal and operational structures of prospective and current clients. For example, employee and job posting data provide them with insights surrounding how a particular company’s teams change and evolve.

Results 

By utilizing our employee, firmographic, community and repository, and job postings data, our client could generate valuable market insights, fuel investment models, and reach their KPIs. Specifically, they complimented our fresh datasets, high-quality and in-depth coverage, and ready-to-use machine learning-friendly data. 

Fresh data 

With regularly updated public web data, investors can stay competitive and generate business opportunities in a fast-paced market. Our client understands the value of fresh data in the investment industry. For instance, fresh data allows them to measure “the number of investments happening due to our platform and the number of interesting deals happening that we flagged before they happened.”

High-quality coverage

Our high-quality employee and firmographic datasets include hundreds of unique data points from 20 business-related sources with the data originating from 190 countries. This richness and coverage guarantee a high degree of flexibility in how our clients can use the data. This specific client was able to leverage the richness of our datasets to enhance their signal generation, conduct high-quality market research, and get a better understanding of company and individual-level dynamics. 

Machine learning 

Many investors increasingly rely on up-to-date public web data to fuel their data-driven investing strategies. Particularly, our client was able to utilize our data “as input to our ML models which means that it is part of training and inference.” Ultimately, this process “functions like an AI advisor, providing insights on successful investment models and areas of interest in the market and to clients.”

Summary

In all, Coresignal’s public web data provided them with the “possibility to understand peoples’ opinions about companies” and gain a better understanding of movement and growth across multiple sectors around the world. Click here to learn more about how public web data can help you generate investment signals, build AI-based tools, and improve your overall investment intelligence.