Correlation Ventures and WR Hambrecht Ventures, both small to midsize firms, started using algorithms to guide investing about seven years ago. Hambrecht, a boutique firm in San Francisco that’s currently raising its fourth fund, uses algorithms as a second screen once companies have made it through initial vetting and are being considered for investment.

Managing director and data scientist Thomas Thurston takes each startup’s pitch deck and runs it through his algorithm, which draws on both proprietary and public data sources.