Learn How TRAC Used Similarweb to Enhance Their Data-Led Investment Strategy
Algorithms + Similarweb data bring success to a new style of venture capital investing.
About TRAC
Founded in 2020 by Fred Campbell, Joe Aaron, Dr. Steve Marek, and Scott Pyne, TRAC is a new type of VC fund where investment decisions are made using AI-developed algorithms predictive of future unicorns. Based in Sonoma, CA, TRAC has raised two funds and made 101 investments.
"We've always seen a chance to outperform traditional VC methods by making data our investment committee. Similarweb has been fundamental right from the start as one of our primary non-financial data sources in every scenario."
Scott Pyne
Co-Founder and Head of Product at TRAC (Third Round Analytics Capital)
The Challenge
Algorithm-based investment strategy feeds off data sources
TRAC operates on the thesis that data-led decisions can enhance VC investing. They aim to revolutionize the investment process by making data part of the investment committee.
However, TRAC faced a significant challenge: obtaining reliable, comprehensive data to feed into their algorithms, especially for companies where web presence and online metrics are crucial.
The Solution
A data-driven investment strategy
TRAC partnered with multiple data providers to fuel their algorithmic models. With Similarweb, they access valuable data throughout the investment process – from sourcing to portfolio management.
During the early investment stages, TRAC uses metrics like web traffic, engagement, bounce rates, web rankings, keyword performance, and SEO to evaluate companies. This data-driven approach helps them eliminate unlikely unicorns, allowing the algorithm to guide their investment decisions effectively.
The Solution
Portfolio management redefined
Now that the investment has been made, ensuring portfolio companies perform and profit is paramount. One of TRAC’s standout offerings is a customized dashboard fueled by data. By blending insights from Similarweb and other data sources, the dashboard helps founders sharpen competitive analysis and identify potential future investors. This data gives TRAC portfolio companies a significant competitive edge.
The Success
Transforming venture capital through strategic analytics
TRAC's integration of Similarweb data has been instrumental. By leveraging comprehensive web analytics, TRAC consistently identifies lucrative investment opportunities and guides portfolio companies toward sustained growth and market leadership.
This proactive approach has enhanced their investment decisions and solidified their reputation as innovators in the VC industry.
"Our algorithms ingest large amounts of data, so Similarweb's API was an obvious choice. It enabled us to quickly integrate multiple datasets and scale operations with minimal effort."
Scott Pyne
Co-Founder and Head of Product at TRAC (Third Round Analytics Capital)
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