Here’s some big news for San Diego’s innovation economy: There’s a new venture capital firm in town—and its investment methodology represents a fundamentally different approach to the conventional business model for venture investing.
The firm, Correlation Ventures, is using predictive analytics technology to tilt the odds in its favor. In fact, by using analytics software that relies on a different way of measuring risk, the San Diego firm is becoming known in some circles as “the Moneyball of venture capital,” according to David Coats, a co-founder and managing partner. He tells me the firm has made 21 investments since mid-2010, and Correlation now has more than $165 million under management.
