Startup founders need to be data-informed, not just ‘data-driven’

Data-driven is almost at the top of the pile when it comes to startup terminology. What is data-driven?

Investments are slowing and VCs are tighter with their money. The growth and returns promised in their initial funding rounds are hard to show in tech startup fields.

Smaller startup with more modest goals can entice VCs looking for safer, smaller deals, but approaching an early-stage venture with a data-driven strategy is a one-sided approach.

Changes in mindsets can change the way data is looked at. There are a few things to do.

Stop using unfiltered data

When a startup doesn't know how to properly filter their data, they often end up using raw data that isn't relevant to their mission.

Veteran investors will pick up on the fact that you don't show investors the total visits to your website.

Instead of simply showcasing growth, show off your growth against the backdrop of the funding you’ve raised.

Data can cause more harm than good. Racist or gender biases have been unintentionally created by many fast-evolving artificial intelligence programs. To understand where a company shines and where there's room for improvement, you need to understand how to filter data.

Use outliers to your advantage if you want to avoid this.

To compare apples to apples, you need to see operations and performance in a more accurate way. Unfiltered data creates a series of inaccurate comparisons and highlights the wrong aspects of the business.