For the past three years, CB Insights and the New York Times have tracked the top Venture Capitalists based on algorithms and accurate data, providing a comprehensive list of the top 100 performers. The List measures VC professionals based upon research that determines what drives fund outperformance, a common measure of success used for firms but that is now being applied to individuals.
High performance persistence, particularly from recent investments, is one of the many ways algorithms are employed to rank VCs to avoid a bias based on narrative or a storied history. Network centrality, where a professional is well-connected in his field, as well as brand and reputation of the VC firm, are other major signs that candidates are successful in their work. Finally, the technology tracks investors with discipline, selection aptitude, and illiquid portfolio strength to determine which VC’s see the best return on investment.
The List is driven by machine learning technology, called The Cruncher, which extracts structured data both from algorithms and direct submission from investors in all types of firms including angel investors, growth/private equity firms, and capital firms. Most investors submit information based on a desire for portfolio exposure to CB Insight’s clients and due to the company’s rise in prominence.
