What to ask when you’re evaluating a database for your venture capital firm
April 18, 2017
With competition growing and room for error pretty much non-existent, many venture capital firms are taking a second look at where they’re getting industry intel. “Is this really the best database out there?”
Switching databases is a big deal—and with so many options, it can be challenging to choose the best one for your firm. To make the process go smoother, we’ve compiled the most important questions to ask when you’re evaluating a database. (Because no one wants to end up with a dud.)
Take a look—and good luck!
Questions about comprehensive data
How many pre-venture and venture deals does the database track?
Does the deal data include pre- and post-money valuations, cap tables and series terms?
Does the database track non-venture investors and non-venture deals? How many?
Does the database track funds (including investments, IRR, cash flow multiples and dry powder)?
Does the database track limited partners (including commitments, preferences, mandates and allocations)?
What kind of information does the database have on private companies? Is it detailed enough?
Questions about data accuracy
What is involved in the research process?
How does the data provider ensure accuracy?
How are pre- and post-money valuations calculated?
Questions about ease of use
Does the database identify different types of financing rounds?
Is fund data connected to deal data?
What is the process to pull data for comps?
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