Alternative Data Insights

A business that takes operational "sawdust data" (the byproduct data from existing businesses) and transforms it into valuable insights for different industries. The focus is on monetizing data exhaust that companies aren't utilizing.

Key Points:

• Data Collection Examples:

  • Restaurant reservation data (OpenTable, Resi) → Insights for real estate firms about area popularity
  • Pet fitness tracker data → Insights for pet insurance underwriters
  • Procurement management system data → Insights for hedge funds about company health

• Business Model Criteria:

  • High Consideration: Customers taking significant risk or investing substantial money
  • Opaque: Information that's hard to find or access
  • Variable SKU: Products/services that can't be easily compared in a simple table

• Monetization Strategy:

  • Build platform to collect and organize data exhaust
  • Transform raw data into actionable insights
  • Sell to industries that can leverage the insights for decision making
  • Create data products from companies' unused operational data

• Competitive Advantage:

  • Most companies don't effectively monetize their data exhaust
  • Building clean data assets requires high pain tolerance
  • Creates moat through difficult-to-replicate data collection

• Target Markets:

  • Real estate investors
  • Insurance companies
  • Investment firms
  • Industry analysts