Max Levchin, CEO of HVF and angel investor in numerous ventures, shows the evolution of data-driven startups.
The first generation of data-driven startups has been companies that buy data, clean it and sell it. "Boring stuff", Max comments to go on further: The next step has been making sense of data. Visualization can help a lot making decisions based on data. So these companies take data and enrich it. The third step has been: Use new sources and sharing to create new efficiencies. Some examples for these sharing-based companies are Uber, Homejoy and airbnb. There are multiple ways to give users reasons to contribute data over time. The next step that is happening right now is the model of "uncertain downside" which means you make a bet and offer the customer different conditions based on different outcomes. The future will be predicting what the customer wants before the person makes a decision him/herself and thus be able to offer the service at that specific time to the user and be ahead of competitors.