What happens when two ex-VCs come together to do a startup? Well, they launch a startup that attempts to fix the gap in VC industry.
Meet Tracxn – a startup by Abhishek Goyal (ex-Accel, ex-founder of UrbanTouch which was acquired by Smile group) and Neha Singh (ex-Sequoia Capital). Tracxn is building technology to track information around private companies and has a team of sector experts/analysts to organize the information and draw insights from it.
The team claims to have close to 10 million companies in its database (globally) and one can browse data by investors/location and spot high growth companies (a combination of founded Year, Funding raised and Team size).
Some of the very cool feature set of tracxn includes sorting of companies by business model, team size, funding, founding year, site traffic etc.
The product is primarily targeted towards VC industry (especially Silicon Valley, where the competition is extremely high), PE funds and Corp developments (for M&A discovery) and is being monetisation via subscription fee.
Tracxn sources its data from various sources including blogs, LinkedIn, Twitter, Google News, Alexa, Whois, SimilarWeb etc.
Is Tracxn Good for Investors?
Typically, if you look at investing decision, VC analysts fall into the right TG for Tracxn. They need data around startups (founding team to competition) and key business models in a sector to importantly, signals around a company. Especially when most of the VC firms are going sector agnostic and have very little subject matter expertise on emerging sectors (like IoT).
Can Tracxn Spot Outliers?
Most of the amazing startups are outliers!
Way back in early 2009, I remember having a conversation with a VC firm who wasn’t sure of investing in this Bangalore based early stage startup. The VC had all the right data points – very few online population, minimal credit card penetration, neglected payment gateway infrastructure etc etc to NOT invest. They regret it after 4 years.
By the way, that little startup was..Flipkart!
Would Tracxn have helped spot these outliers? At this stage, I am not sure. Tracxn is great to spot signals around companies and helps in trend spotting (around a company, i.e. growth/traction etc), but when it comes to spotting industry trends, the platform has a long way to go. Having said that, a platform cannot dumbify investing decisions – it can only accelerate decisions and that’s a huge opportunity for Tracxn.
One of the features Tracxn team will have to build eventually is enabling startups to edit/add data. The truth is that most of the public data of startups isn’t right – mostly by design (for e.g. founders don’t update when other cofounder leaves/when they raise funding till the news is announced publicly etc) and for Tracxn to become a source of signals, they need to grab these signals before it becomes commodity.