ESG and Big Data
Work to Live, Not Live to Work
As we move towards the endemic phase of Covid, we must hone our perspective on finding a balance within our work and personal life. This reflection has many of our friends, portfolio companies, and LPs re-thinking what is most important to them. As for us, we always attempt to reflect and adjust when we have new information or experiences.
In particular, in early-stage investing, we find that entrepreneurs have their work as the center of their lives. Still, more importantly, they are focusing on world-changing work that excites them and enriches their lives. We find entrepreneurs as a critical example or challenge to all of us to discover what we are passionate about and find a fascinating problem to solve in your life.
For the team at Vestigo Ventures, our passion is finding and funding the best entrepreneurs in the early-stage FinTech ecosystem. Since we founded Vestigo, we have felt incredibly privileged to help these founders make the world better in countless ways. One specific area for us as investors is ESG. In the past, we have seen companies grow and change the world; ESG is no different. We must find and fund the right company(s) as they can significantly affect how the world moves to sustainable business practices. More on the topic of ESG is covered below by Kelly Shaw.
Another trend, as we all know, impacting our lives as consumers and as a business is the commercialization of AI and Big Data. On the business side, we see many mundane tasks such as claims processing being automated by companies such as Roots Automation, a portfolio company of Vestigo. Internally, we use big data from Cogo Labs to help us source new FinTech companies, where we have processed millions of domains to date. For consumers, companies can now create customized experiences for each user, creating a much more dynamic experience. As an example, our portfolio company, Acquire, does this for any merchant operating in the Shopify ecosystem.
As we see across all industries, the tools of Big Data allow us to gain insights or improve processes, where it would be near impossible to do in the past. Thinking about the future of financial services and technology is unique to our abilities as humans as many of the concepts are abstract, and the range of outcomes is practically limitless. Therefore, it gives us time to think and discuss the future, which is a great and fun way to love what we do at work.
Lastly, harnessing technology has been the way of the human race since time began. We are lucky to be here now when such significant changes unfold in AI and how we think about how businesses operate under new conditions in the ESG space. We love working when it involves helping shape the future.
— Mark & Dave
In this episode, Frazer speaks with the CEO of DVx Ventures, Jon McNeill, where he shares what it means to be a company that creates companies, Elon Musk stories, his influences, and what excites him about the future.
Vestigo Ventures: 2021 FinTech In Review
ESG and Big Data
The explosion of data is no secret. 64.2 zettabytes of data were created in 2020, and data is expected to grow 23% annually to 181 zettabytes by 2025 (For reference, a zettabyte is the equivalent of 250 billion DVDs). Advances in the ability to access and measure previously untapped data sources, combined with advances in AI/ML analytical techniques, have created new opportunities for data scientists to better understand the world around us. IoT sensors, satellites, ocean buoys, and aircrafts are just a few examples of ways climate scientists can collect real-time, meticulous measurements of changes occurring on Earth and analyze what those changes might forebode.
Alongside the rise of data has come a recognition of the impact of business on climate change. This has led to empowered consumers, investors, and employees pushing for greater transparency and an alignment of values with the firms they interact with. Sustainable investments now make up 36% of global AUM. Consumer searches for Sustainable goods have increased 71% over the past five years. ESG regulations have already been introduced in the EU and are on the horizon in the US, with the SEC expected to release a number of ESG-related proposals in 2022. The UN 2021 climate conference brought forth a new International Sustainability Standards board to simplify different sustainability reporting frameworks.
Organizations can leverage advances in AI/ML techniques and data availability to generate useful ESG insights for internal and external purposes. For instance, tracking production and supply chain CO2 emissions and waste requires big data analytics to ensure organizations are meeting their ESG goals. Companies are in various stages of incorporating a variety of data sources and analytical tools to meet public and regulatory reporting expectations in an accurate and transparent manner. Such tools can also be used to stress test business risks related to climate change.
Within Financial Services, big data enables asset managers to benchmark and construct portfolios aligning with investor values. In the Insurance industry, the increasing frequency and severity of weather events have the potential to create gaps in risk. The availability of real-time and more minute climate and weather data can enable the creation of dynamic risk models to improve insurance policy pricing. Here at Vestigo, we remain excited by opportunities that provide Financial Institutions and Insurance corporations with proprietary tools for the ingestion and analysis of ESG data.
- Kelly Shaw
Portfolio Updates
Railz Becomes SOC 2 Compliant
At Railz, 2022 is off to a great start with becoming SOC 2 compliant. As an investor in their company, we are tremendously proud to how seriously they take data privacy.
Roots Automation Ranked as Top 10 Most Hyper Intelligent Automation Providers
We are excited to see Roots Automation listed as Analytics Insight's top 10 most intelligent automation solution providers.
ZenLedger Now Supports Avalanche for Crypto Tax Reporting
It's terrific to see ZenLedger continue to expand its offering to help consumers and businesses with their tax reporting needs.
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