Work/Think/Play

Aidan Jobe Sea

Think

Data is the plural of anecdote, and here I work to turn my thoughts into ideas.

thought of the week

select papers

Master Thesis

2011

Bachelor Project

2007

Let Social Media do the work

Screening companies for early stage investing takes a great deal of time and legwork. Two companies might initially seem to have equally competent ideas and founders, so how does a venture fund allocate time and money more efficiently?


Proposal: Use social media to determine which companies people are talking about.


Aggregated data from social media can now determine the national mood and even predict market movements. Tools for aggregating and measuring people’s multitude of online thoughts and opinions give venture funds the opportunity to see which companies people are excited about.


By comparing the volume and content of social media discussion regarding potential investments, it is easy to see which company has greater public awareness and favorability. As a bonus, since truly disruptive innovations are likely to excite passions for and against, finding them does not require teasing out positive and negative feedback so much as determining sentiment intensity and total discussion volume. These tools will have trouble recognizing good companies that are either too evolutionary or stealth to excite passion, but by including these companies in the data, especially once the existing origination process leads to investment, it is possible to develop more robust fund-specific analytical techniques for the future.


In short, developing techniques for using and understanding data from social media gives funds access to a relatively inexpensive and proprietary source of information with potential to significantly improve the origination process.

index of thoughts

Let Social Media do the work

Principles for Private Equity

Despite Disclosure Requirements

Private Equity and the Option

design ©2012 Aidan Jobe Sea