Mattermark May Change the Way Venture Capitalists Invest in Startups

Mattermark, launched in June, tracks the progress of promising young startups through independent research. It recognizes that although revenues are important, there are many other factors to consider when addressing a young company’s potential.

It seems everywhere we look these days startups are appearing—and disappearing. A study by Allmand Law earlier this year showed that 90% of all tech startups fail. There are many reasons why a company is unsuccessful in gaining traction, attracting an audience and growing their business. Gradual growth or sudden decline, Mattermark will filter out the companies for investors’ benefit.

“We track web-traffic, inbound links, Twitter followers, Facebook likes and all those other means and pull them all together,” explains Danielle Morrill, cofounder and CEO of Mattermark. “Investors spend a lot of time looking up how many Twitter followers a company has or how many people are employed. And even with all that work they don’t have time carrying data to see changes over time. They don’t really have context. Are a thousand Twitter followers a lot? Or did they have a thousand Twitter followers a year ago and haven’t grown that at all?”

It’s a buyers market and venture capitals don’t mind being a bit pickier with their high-risk funding. Mattermark’s broad database is quickly becoming a useful resource for investors seeking promising investments.

“The stats we measure we can get from all businesses out there,” said Morrill. “And most successful companies do grow these stats.”

Mattermark supplies companies’ ranks, customer reports and alerts and detailed profiles of over 160,000 companies all around the world. Investors focus on many different aspects of a company that sparks their interest, some seek general information while others delve into specifics. But when it comes down to it, growth is the most important factor and Mattermark rewards those that successfully achieve progression week after week.

“It helps to understand how hard it is to grow consistently,” Morrill told Techvibes. “We draw attention to companies who are figuring out how to do that, because they are pretty rare. But we think there are a lot of exciting companies that for whatever reason don’t get covered in the press. Rather they don’t have any venture backing, so they don’t have any real reason to make an announcement or to get followed by the press in the first place. Or maybe they don’t know how to tell their story, but we believe that the most important story is that they are growing.”

Mattermark supply daily updates in real-time and are constantly sourcing new companies. The previous week, 1400 companies were added to their list.

“We made a huge effort to clean all the existing data sources and fill in all the gaps,” said Morrill. “For our users we have a lot of features being developed all the time making it faster and easier from them to research companies. They will be able to create custom alerts and reports. And they will also be able to manage their investment pipelines through our applications.”

Private markets are now serving as big investment opportunities and Mattermark wants to be a part in it too. The high risk, high reward private company ventures can be made a lot easier and accessible with Mattermark’s expansive research and database. Although they are only focused on startups at the moment, it is just the beginning.

“In the future it is going to be more and more competitive to invest in the best startups. So we need to help them get a competitive advantage by helping investors move faster and faster.”

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