How D3VC is Transforming Venture Capital with AI and Data

Oct 19, 2024By Sherwood Neiss
Sherwood Neiss

At D3VC, we believe the future of early-stage venture investing lies in the strategic application of data science and artificial intelligence (AI). Our proprietary investment model, developed using the most comprehensive dataset from Crowdfund Capital Advisors (CCA), helps us identify startups with the potential for outsized returns while minimizing risk.

What sets D3VC apart is our access to the industry’s only 100%-complete database of online investment transactions. This dataset, covering over 8,000 companies since 2016, provides us with deep insights into which startups are most likely to succeed. Our AI algorithm, trained on this data, identifies patterns that indicate whether a company is on track for follow-on financing or other markers of success.

However, our approach isn’t just about picking winners. Instead, D3VC takes a broad, diversified approach, with a goal to invest in 200–300 early-stage startups. This level of diversification—much higher than traditional venture funds—will allow us to lower risk while maintaining the potential for significant returns. In fact, our AI-driven model has consistently outperformed traditional benchmarks, currently estimating annualized returns of 19.4%, compared to 7.2% for the S&P 500.

Our investment process combines the speed and precision of AI with the expertise of our human investment committee. The AI narrows down hundreds of opportunities to a select few, which our team then reviews and validates. By blending human judgment with cutting-edge technology, we can efficiently identify and invest in high-potential companies, positioning our investors for long-term success.

At D3VC, we’re not just transforming venture capital—we’re building the future of it.