By Nancy Dahlberg
“Most young startups do not have a data science team, nor much support when deciding how to get the most out of their data. They might only focus on revenue and number of users at investor meetings, which can be exaggerated or bought, while ignoring statistics on user engagement and retention – which are the true signals that reveal the potential for hyper growth,” says Laura González-Estéfani, Founder and CEO of TheVentureCity, a global early-stage venture fund that has made over 100 investments.
For those reasons, TheVentureCity, based in Miami and Madrid, has just launched a free tool to measure the growth of any startup. The venture fund says that Growth Scanner gives startups valuable insight into the true health of their product, using the lens of TheVentureCity’s experienced team of data scientists and investors.
How they built it: After building products in the early days of Facebook, WhatsApp and eBay, TheVentureCity’s global team came together to seek out high-potential startups regardless of zip code or time zone. As the team analyzed countless startups’ transactional and usage data logs, they put together their own extensive data stack to train its data analytics technology.
That resulted in Growth Scanner, which focuses on key metrics like retention/churn, engagement, and growth accounting. TheVentureCity uses this data to assess the strength of a startup’s product-market fit, and give founders a better understanding of their product growth levers and benchmark within their industry so they can reach smart business decisions. TheVentureCity’s believes VCs should not only give capital away but wisdom, and they decided to do so by democratizing data-driven advice for founders, regardless of whether or not they were in their portfolio.
Growth Scanner is on Product Hunt today.
How to use Growth Scanner: Startups first upload to the platform at least 6 months of data relating to users’ historical actions on their product. Those numbers are then transformed into a comprehensive, custom analysis of key metrics, benchmarks, strengths and weaknesses – all in a sharable, canvas-style dashboard with numbers and charts to help you visually tell your story to investors and stakeholders. In addition, every startup gets at least a 30-minute call in which TheVentureCity’s data experts will provide context and answer any questions. The data is anonymized and not shared with third parties.
How other startups have used the process: “Growth Scanner has been critical to our understanding of our business in three ways,” says Álvaro Echevarría, Founder & CEO of SimpliRoute, whose Series A was led by TheVentureCity. “First, it clarified our unit economics and which segment we needed to invest in to grow. Second, it showed our revenue across different geographies to help us determine where we could reach the next level. Third, it’s helping us become Series B ready with critical advice on how to develop our data warehouse.”
You can watch a product demo video from David Smith, TheVentureCity’s VP Data and Analytics, here:
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Follow Nancy Dahlberg on Twitter @ndahlberg and email her at [email protected]
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