Hi, Iโm Andre and welcome to my newsletter Data-Driven VC which is all about becoming a better investor with Data & AI. Join 32,910 thought leaders from VCs like a16z, Accel, Index, Sequoia, and more to understand how startup investing becomes more data-driven, why it matters, and what it means for you.
How do data-driven VCs approach deal sourcing? In our latest session, we take a deep dive into two real-life cases of how Flashpoint VC and Dawn Capital automate their investment processes. Request access now and watch later.
Hi there!
Itโs a big week as LLMs passed the Turing Test for the first time ever, showcasing that todayโs AI is perceived as truly human. Just two years ago, majority of experts assumed this would take until 2030 or longer. Yet, weโre in early 2025 and models passed the test, showing that the technology is at an exponential growth trajectory and able to take on more and more tasks, faster than we expected.
Implications for Investors
The investment value chain was historically extremely manual and subjective, making it prone to flawed decisions due to incomplete datasets and biased perspectives as a result of limited sample exposure for human professionals.
For outside-in assessments, most startup data has been spread across the internet, thus requiring tedious work to pull everything together into a single source of truth that serves as the foundation for a go / no-go decision.
Looking at one of the core strengths of LLMs, itโs definitely in semantically processing masses of data and distilling key information into simple structures.
Seems like a great match? Indeed!
Yet, many investors have played around with LLMs for startup evaluation and quickly went back to their manual established workflows. Why? Well, in my experience few professionals take the time to sufficiently refine their prompts. If you do, however, youโll be surprised about the power of these models.
To show you how whatโs possible with the right prompts, hereโs one of the most powerful examples I regularly use to evaluate startups. You only need the company name and/or website, yet the more info available the better. Best case you can even upload materials such as their pitch deck. Make sure to honour data sharing and privacy restrictions.
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Powerful Prompt for Startup Evaluation
Hereโs the full prompt to evaluate any startup and generate a comprehensive investment summary with ChatGPT and other providers: