We get many questions and reactions from startup founders when we tell them that our initial intake process is 100% automated and allows us to get to a Yes or No in 15 minutes or less. And other funds just think we’re crazy which generally tells us we are onto something 😎.
It’s hard to unpack the full story in an email so we wanted to write a post for perspective founders highlighting the What, Why, and What’s Next of our investment process.
Our HQ is located in one of the most prolific tech investing hotspots in the entire United…
By: Kyle Schlotman, Managing Partner and CIO of Connetic Ventures
It is amazing how time flies by, it feels like just yesterday I was leaving my stable job with great benefits, in Corporate America, to journey out into the world of Venture Capital.
Despite knowing very little about the industry, being a Venture Capitalist had been my professional dream since I was a teenager. Investing money in disruptive technologies while meeting extremely smart, interesting people in the process? Who wouldn’t want to go into that industry? …
We are excited to announce the launch of Connetic’s Scout Program. For our Scout Program, we have selected 4 of our portfolio founders to participate in 2021 with the goal of expanding to more of our founders once we have optimized this for Connetic and the participants.
Scout Programs are well established for Coastal VCs but are rare for small funds located between the coasts. The general purpose of a Scout program is to leverage networks of Scouts to identify and source high-quality startups that a fund may not find on its own. Scouts can be former founders, portfolio founders…
Recapping Connetic activity and investments in 2020
2020 was quite a year. It affected us all and has impacted the way we live and do business for the foreseeable future. When looking just at Connetic’s business, 2020 was a net positive for us as our model of being a completely digital VC allowed us to not miss a beat and evaluate more deals than usual. This is a trend that we hope continues as more and more relationships and deals will be done virtually.
Last year, we saw nearly 2,500 companies and had 1111 formal applications (up 54% from 2019)…
This is a question we get asked frequently from both potential investors and startups when they learn that we use an AI bot to help us make Venture Capital investments.
For a bit of background before we dive in, nearly 2 years ago we launched Wendal, our AI / ML platform that automates due diligence on early-stage startups. We came up with the idea for Wendal because we are located in Covington, Kentucky (not a hotbed for unicorns), and wanted to build software to source and evaluate startups from all over North America.
To learn more about Wendal and how…
At Connetic, we use data for everything. We use data to evaluate companies, build our asset allocation model, and create our fund investment thesis. In this post, I wanted to elaborate on the specific data points that built our investment thesis for our current fund, Connetic Ventures Fund.
The three main pillars of our investment thesis are:
Diversification — As the number of investments grow, the likelihood of generating positive returns increases
Value — In underserved markets, you can get 1.5 to 2x more share for your money without sacrificing the potential for outsized returns
Follow-On — Follow-on investments typically…
Who are startup founders? And why are some more successful than others?
In prior posts, we have talked about our process at Connetic Ventures and gone into detail about Wendal™ our proprietary machine learning platform for deal ingestion and diligence.
At Connetic Ventures, when a startup applies for funding we capture nearly 400 proprietary data points on the company and founder. The data is both inputs from companies and data derived from backend algorithms. …
Unbiased. Transparent. Efficient.
Connetic Ventures is an early-stage Venture Capital fund that uses data and technology to remove bias, increase efficiency, and make smarter investments.
We have created two pieces of proprietary technology (Wendal and StartupDNA) to automate due diligence and create a fair funding process for all founders. Not only do we update our algorithm monthly, we continuously monitor it for fairness to ensure that every company has an equal shot at funding.
2.5 years ago, we ditched “The Pitch” for good. …
Covid-19 is Accelerating our Investing Model
We’ve received a large influx of questions about our fund and data-driven model since coronavirus has shifted the investing landscape over the past few weeks. Given this, I wanted to write a quick article to raise brand awareness about Connetic and our model as we have been a digital VC for almost 3 years.
My goal would be to increase deal flow so much that we would write more checks in April than any month in our history, and I believe we can do that and we want to do that, so if you…
We interviewed early-stage VCs to see how the global pandemic is impacting their funds and companies
I interviewed 4 early-stage VCs with offices in Chicago. If you don’t have time to read through the full interviews, here are some highlights:
- All funds are still actively investing and not changing their size of # of checks written
- Remote working is the only significant change to operations
- Capital efficient startups are back in
- Key advice to early-stage founders is to get lean, overcommunicate, and spend more time with existing investors
- Effects of coronavirus are likely valuations will…
Connetic Ventures is an early-stage VC firm that leverages data, machine learning, and behavioral science to remove bias from the investing process