Most investors claim to follow the data, which is good investing practice and even better marketing. Besides, no really successful investor is ever going to claim blind luck or gut instinct as their secret sauce.
But letting the data drive one’s actual investment decision-making is a lot more difficult in practice than it is in theory. After all, there’s a lot of data out there, Sailesh Ramakrishnan, a partner at early-stage global venture capital firm Rocketship Ventures told Karen Webster in a recent conversation.
He said the world is awash with data all day, every day – from mobile apps, social media, ratings sites of all sorts, etc. – a stream that generates a constantly shifting sea of information for any investment firm.
But Ramakrishnan said that information breaks down into three distinct types. “There’s a bunch of day-to-day, changing data that come in, things like newspaper articles, employment history, new executives joining, funding announcements and so on,” he told Webster.
On the other end of the spectrum is the static, mostly historical data about a company. And in between is the slow-changing data – quarterly performance results and the like.
“So there’s a whole continuum of data, and not only do you need different techniques to extract information, you also need different ways of combining these different streams to get an entire image,” Ramakrishnan noted.
And that is what Rocketship’s algorithm-based investment model was constructed to do. It sets multiple models keyed into different time slices against the startup ecosystem and gears the firm’s investments toward early-stage firms in their earliest investment rounds (generally the seed, A and B rounds).
The model aims to accomplish the same goal of every early-stage investor: to get in on the ground floor with the next amazing company and disburse the funds entrepreneurs need.
Following The Data To The Unexpected
Rocketship’s models are varied – some compute data every day, some every few weeks and others every few months.
Ramakrishnan said none of these models are perfect, because perfect models don’t exist. But they’re designed to learn and improve over time, filtering data into better guidance and recommendations as to where the firm should be looking to invest.
That doesn’t mean the model gets to make decisions on its own. Ramakrishnan said one of the most important realities of working with mathematical modeling is that it has its limits. Reality is full of intangibles that matter very much to a company’s success, but they’re hard to present mathematically.
“That is why we have not invested in every company that our algorithms identify,” Ramakrishnan explained. “We as human partners spend a lot of time trying to understand that ‘secret sauce’ that exists within the company, and whether that is a sustainable, resilient element.”
But it does mean that when the data point in a certain direction, the firm knows that’s the place to start looking – even if it’s not what Rocketship expected to see.
A World Of Opportunities
That was the firm’s experience almost immediately upon launching its first fund five years ago. The plan was to do what nearly every Silicon Valley investment firm was doing at the time.
Rocketship intended to start local with all the opportunities in the Valley, then down the road push out into the country at large and eventually the wider world. But when the firm actually started running its algorithmic models, Rocketship quickly found that its plan was, in a word, wrong.
What the data told the company was that its own backyard was the wrong place to play. The broader world was full of amazing companies without much regard to borders – in India, the European Union or Latin America.
Ramakrishnan said Rocketship was founded by career data scientists, all operating under one golden rule: “Never impose one’s strategy in conflict with what the data is saying.”
“Data offered us these kinds of global opportunities and we followed,” he said. “We became a global investor pretty much on day one, and were immediately very different from what most other investors were doing.”
Thriving During The Pandemic
Ramakrishnan pointed out that the world of investing is changing all around us, but in ways that play to Rocketship’s strengths.
In a world where a pandemic has shut down face-to-face meetings, everyone on Earth suddenly has to learn something that Ramakrishnan said his firm has spent the past half-decade working on: investing in firms whose founders you’ve never met in-person.
And he added that the investment landscape is still lively in an awful lot of places. For example, firms that enable cloud-shift, FinTechs that enable lending, firms specializing in employee management and neobanks/digital banks are all areas where opportunity is exploding in response to recently skyrocketing demand.
Democratizing Venture Capital
Perhaps even more interestingly, Ramakrishnan said, is that the investing landscape itself is beginning to change as it becomes more globalized and democratized. The balance of power is shifting in ways he believes will ultimately benefit the best, most innovative companies worldwide, without regard to where they were founded.
Ramakrishnan said the next amazing startup might come from Silicon Valley, but it could just as well come from Vietnam, Nigeria, Chile or Colombia. And those firms will come to market better able to build a track record of results without raising capital – which means by the time they’re talking to potential investors, “the dynamic has changed,” he noted.
The money will always be extremely important, but the data-driven investing world of the future is about more than that, he said.
“Everybody’s asking investors, ‘What can you do for me?’” Ramakrishnan said. “[But] it’s not just about if we have the dollars – it’s because of our backgrounds, our data science, our data.”
“We now have to have those reasons why you should take our money from us versus anybody else who’s offering money to you,” he said. “And I think that dynamic – where there is that recognition of the value investors play over and beyond just the dollars – is [an] essential part of this conversation.”
Eat Beyond Welcomes Downstream Marketing Strategist Michael Owen to its Investment Committee – Canada NewsWire
Michael Owen brings over 30 years of expertise to provide hands-on support to drive the growth of the Eat Beyond portfolio companies
VANCOUVER, BC, Nov. 26, 2020 /CNW/ – Eat Beyond Global Holdings Inc. (CSE: EATS) (FSE: 988) (“Eat Beyond” or the “Company“), an investment issuer focused on the global plant-based and alternative food sector, is announcing that Michael Owen has joined the Eat Beyond investment committee.
Mr. Owen has over 30 years of experience and is a senior marketing and sales executive. He has held leadership positions in a range of companies focused on consumer packaged goods, with leadership experience in marketing, sales, and supply chain. He spent over 10 years as a partner at Crombie Kennedy, a leading Canadian sales agency, which was acquired by Advantage Solutions in 2010. With Advantage Solutions, Mr. Owen played an instrumental role doubling EBITDA as VP Business Development, responsible for creating innovative sales and supply chain solutions for leading brands across multiple categories during the 5 years post-acquisition.
Prior to this, he held marketing and sales positions with Robin Hood Multifoods Inc., Unilever, Nestle, and Mars Incorporated, where he was CMO of the Uncle Ben’s Rice U.S. division. Previously Mr. Owen has enjoyed entrepreneurial success including ownership of the Duncan Hines brand in Canada and participation in several food company startups. Mr. Owen is also an advisory board member for Nature Bio Foods, India’s largest exporter of organic foods and ingredients.
“Eat Beyond is focused on an area that I consider to be one of the most exciting in the consumer packaged goods, and food space in general. Consumers are seeking healthier, smarter, plant-based, and non-traditional products,” said Michael Owen. “I believe that my extensive operating experience in sales and marketing can add tremendous value and insight to the Eat Beyond portfolio.”
Mr. Owen joins Lloyd Lockhart, Diane Jang, and Allen Linder on the investment committee, rounding out the team with his marketing and sales expertise. The investment committee works to scout and select companies for the Eat Beyond portfolio, and is also hands-on, working closely with the Eat Beyond portfolio companies to support their success.
“We are active in supporting our portfolio companies, helping them to navigate growth and connecting them to industry contacts and resources,” said Patrick Morris, CEO of Eat Beyond. “Mr. Owen is a terrific candidate for the investment committee, with his exceptional track record and breadth of experience in marketing, sales, and growth for consumer packaged goods. We are thrilled to welcome him to the team.”
The Company further announces a grant of 100,000 stock options of the Company to Mr. Owen, exercisable at $0.71 expiring 5 years from the date of grant, subject to regulatory approval.
The Company is also pleased to announce that its common shares were accepted for listing on the Frankfurt Stock Exchange (FSE) under the trading symbol (988). The Company’s common shares are now cross-listed on the Canadian Securities Exchange (CSE) and the FSE.
About Eat Beyond Global Holdings
Eat Beyond Global Holdings Inc. (“Eat Beyond”) (CSE: EATS) (FSE: 988) is an investment issuer that makes it easy to invest in the future of food. Eat Beyond identifies and makes equity investments in global companies that are developing and commercializing innovative food tech as well as plant-based and alternative food products. Led by a team of food industry experts, Eat Beyond is the first issuer of its kind in Canada, providing retail investors with the unique opportunity to participate in the growth of a broad cross-section of opportunities in the alternative food sector, and access companies that are leading the charge toward a smarter, more secure food supply. Learn more: https://eatbeyondglobal.com/
For media inquiries, please contact: [email protected]
For investment inquiries, please contact: [email protected]
SOURCE Eat Beyond Global Holdings Inc.
For further information: please contact Cindy Chiu at [email protected] or (236) 521-6499
Red White & Bloom Announces Participation in Upcoming Investment Conferences – GlobeNewswire
TORONTO, Nov. 25, 2020 (GLOBE NEWSWIRE) — Red White & Bloom Brands Inc. (CSE: RWB and OTC: RWBYF) (“RWB” or the “Company”) is pleased to announce they will be in attendance at two invitational investment conferences this month.
2020 Cantor Fitzgerald Virtual MSO Cannabis Summit
Presentation: Wednesday, December 16th, 2020 – 3:00PM ET
For more information or to schedule a one-on-one meeting with RWB’s management during these events, please contact Red White & Bloom’s Investor Relations at IR@redwhitebloom.com.
About Red White & Bloom Brands Inc.
The Company is positioning itself to be one of the top three multi-state cannabis operators active in the U.S. legal cannabis and hemp sector. RWB is predominantly focusing its investments on the major US markets of Michigan, Illinois, California, Arizona, Oklahoma and Massachusetts with respect to cannabis, and the US and internationally for hemp-based CBD products.
For more information about Red White & Bloom Brands Inc., please contact:
Tyler Troup, Managing Director
Circadian Group IR
Visit us on the web: www.RedWhiteBloom.com
Follow us on social media:
Neither the CSE nor its Regulation Services Provider (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this release.
FORWARD LOOKING INFORMATION
This press release contains forward-looking statements and information that are based on the beliefs of management and reflect the Company’s current expectations. When used in this press release, the words “estimate”, “project”, “belief”, “anticipate”, “intend”, “expect”, “plan”, “predict”, “may” or “should” and the negative of these words or such variations thereon or comparable terminology are intended to identify forward-looking statements and information. The forward-looking statements and information in this press release includes information relating to the new team members expertise and how the Company will benefit from their ability to assist the Company implement its business plan. Such statements and information reflect the current view of the Company with respect to risks and uncertainties that may cause actual results to differ materially from those contemplated in those forward-looking statements and information.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or other future events, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following risks: risks associated with the implementation of the Company’s business plan and matters relating thereto, risks associated with the cannabis industry, competition, regulatory change, the need for additional financing, reliance on key personnel, the potential for conflicts of interest among certain officers or directors, and the volatility of the Company’s common share price and volume. Forward-looking statements are made based on management’s beliefs, estimates and opinions on the date that statements are made, and the Company undertakes no obligation to update forward-looking statements if these beliefs, estimates and opinions or other circumstances should change. Investors are cautioned against attributing undue certainty to forward-looking statements.
There are a number of important factors that could cause the Company’s actual results to differ materially from those indicated or implied by forward-looking statements and information. Such factors include, among others, risks related to the Company’s proposed business, such as failure of the business strategy and government regulation; risks related to the Company’s operations, such as additional financing requirements and access to capital, reliance on key and qualified personnel, insurance, competition, intellectual property and reliable supply chains; risks related to the Company and its business generally. The Company cautions that the foregoing list of material factors is not exhaustive. When relying on the Company’s forward-looking statements and information to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. The Company has assumed a certain progression, which may not be realized. It has also assumed that the material factors referred to in the previous paragraph will not cause such forward-looking statements and information to differ materially from actual results or events. However, the list of these factors is not exhaustive and is subject to change and there can be no assurance that such assumptions will reflect the actual outcome of such items or factors. While the Company may elect to, it does not undertake to update this information at any particular time.
THE FORWARD-LOOKING INFORMATION CONTAINED IN THIS PRESS RELEASE REPRESENTS THE EXPECTATIONS OF THE COMPANY AS OF THE DATE OF THIS PRESS RELEASE AND, ACCORDINGLY, IS SUBJECT TO CHANGE AFTER SUCH DATE. READERS SHOULD NOT PLACE UNDUE IMPORTANCE ON FORWARD-LOOKING INFORMATION AND SHOULD NOT RELY UPON THIS INFORMATION AS OF ANY OTHER DATE. WHILE THE COMPANY MAY ELECT TO, IT DOES NOT UNDERTAKE TO UPDATE THIS INFORMATION AT ANY PARTICULAR TIME EXCEPT AS REQUIRED IN ACCORDANCE WITH APPLICABLE LAWS.
Feds should invest to meet climate goals, catalyze recovery: RBC – Investment Executive
“Making these investments now could help underpin a low-carbon transition, drawing in business investment, and complementing the government’s efforts to support jobs and economic recovery,” it said.
The government has planned emissions reductions toward the ultimate goal of net-zero emissions by 2050.
Yet, for major polluters, such as the energy sector and heavy industry (such as concrete and steel), carbon capture is technically feasible but “often seen to be cost prohibitive,” RBC noted.
Carbon capture projects “are capital intensive and high-risk during the extended construction phase,” it said, adding that this discourages private investment.
This is where government should be stepping into the breach with public funding for research, RBC suggested. Ultimately, driving down costs and developing effective technology will help the projects become more viable for private investment.
“As it lays out long-term climate plans, the federal government has an opportunity to write a new chapter in Canadian climate policy: one that acknowledges the importance of the energy sector, encourages abatement across industries, leverages investment from the private sector, and spurs innovation in sectors that contribute the most to our climate challenge,” the report said.
At the same time, government investment can help combat the long-lasting effects of the Covid-19 crisis, the report said.
“While crisis support for the economy has rightly been the government’s focus, investment in new technologies and industries can limit lasting scars from this recession,” it said.
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