the business of big data - ia ventures

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The Business of BIG DATA General Assembly July 12 th , 2011

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Page 1: The Business of Big Data - IA Ventures

The Business of BIG DATA

General Assembly July 12th, 2011

Page 2: The Business of Big Data - IA Ventures

What we’ll cover

1. What is Big Data?

2. Characteristics of a Big Data business

3. Creating competitive barriers in Big Data

Page 3: The Business of Big Data - IA Ventures

Data is becoming the new raw material of business: an economic input almost on a par with capital and labour. “Every day I wake up and ask, ‘how can I flow data better, manage data better, analyse data better?” says Rollin Ford, the CIO of Wal-Mart.

Source: Data, Data Everywhere, The Economist, February 25, 2010

There were 5 exabytes of information created between the dawn of civilization through 2003, but that much information is now created every 2 days, and the pace is increasing

Eric Schmidt, Google CEO, Techonomy Conference, August 4, 2010

Why now?

Page 4: The Business of Big Data - IA Ventures

Source: Mike Driscoll, CTO Metamarkets: The Three Sexy Skills of Data Scientists (& Data Driven Startups)

Page 5: The Business of Big Data - IA Ventures

Source: Mike Driscoll, CTO Metamarkets: The Three Sexy Skills of Data Scientists (& Data Driven Startups)

Page 6: The Business of Big Data - IA Ventures

What is Big Data?

Page 7: The Business of Big Data - IA Ventures

Big Data = Complex Data

Large

Real-time

Page 8: The Business of Big Data - IA Ventures

Large• Billions of

web clicks+1TB

• Millions of web pages

10GB-1TB

• Thousands of Sales figures

<10GB

Page 9: The Business of Big Data - IA Ventures
Page 10: The Business of Big Data - IA Ventures

Real-time

Page 11: The Business of Big Data - IA Ventures

A Big Data company unlocks intelligence from

complex data

Page 12: The Business of Big Data - IA Ventures

IA Ventures invests in early-stage companies unlocking intelligence from complex data

Page 13: The Business of Big Data - IA Ventures

history of big data

Page 14: The Business of Big Data - IA Ventures

Search Engine

Page 15: The Business of Big Data - IA Ventures

Search Engine

Crawl the web

Query

Page 16: The Business of Big Data - IA Ventures

Search Engine

Crawl the web

Query

Storage

Computation

Page 17: The Business of Big Data - IA Ventures

StorageComputation

Page 18: The Business of Big Data - IA Ventures

StorageComputation

Distributed

Page 19: The Business of Big Data - IA Ventures

Distributed Storage

Distributed Computation

Map Reduce Big Table

Page 20: The Business of Big Data - IA Ventures

Distributed Storage

Distributed Computation

Map Reduce Big TableHadoop HBase

Page 21: The Business of Big Data - IA Ventures

Distributed Storage

Distributed Computation

Page 22: The Business of Big Data - IA Ventures

Distributed Storage

Distributed Computation

Page 23: The Business of Big Data - IA Ventures

So you want to start a big data company?

Page 24: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Page 25: The Business of Big Data - IA Ventures

Your Data Other Data

Taxonomy of Big Data Companies

Sell Data Compute + Sell Data-driven ProductData Products

Page 26: The Business of Big Data - IA Ventures

Your Data Other Data

Taxonomy of Big Data Companies

Sell Data Compute + Sell Data-driven Product

Data Products

Page 27: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Data Products

Page 28: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Data Products

Page 29: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE

Data Products

Page 30: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE

Data Products

Page 31: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch

Data Products

Page 32: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

Data Products

Page 33: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

Data Products

Page 34: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

DataSift, Yipit

Data Products

Page 35: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

DataSift, Yipit Metamarkets, PlaceIQ

Data Products

Page 36: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

DataSift, Yipit Metamarkets, PlaceIQ RecordedFuture, BillGuard

Data Products

Page 37: The Business of Big Data - IA Ventures

Taxonomy of Big Data Companies

Your Data Other Data

Sell Data Compute + Sell Data-driven Product

Twitter, NYSE Bit.ly, Hunch Zynga, Amazon

DataSift, Yipit Metamarkets, PlaceIQ RecordedFuture, BillGuard

Data Products

Page 38: The Business of Big Data - IA Ventures

Moats

Page 39: The Business of Big Data - IA Ventures

Data Network Effects Data Economies of Scale

Competitive Barriers

Page 40: The Business of Big Data - IA Ventures

Network Effects

Traditionally think of….

‘Network graphs’

Marketplaces

Page 41: The Business of Big Data - IA Ventures

Network Effects

No network effects

Within the data eco-system…

Page 42: The Business of Big Data - IA Ventures

Data Network Effects

Within the data eco-system…

Page 43: The Business of Big Data - IA Ventures

Data Network Effects

Within the data eco-system…

Page 44: The Business of Big Data - IA Ventures

Economies of Scale

Traditionally think of….

Page 45: The Business of Big Data - IA Ventures

Data Economies of Scale

1. Product

2. Users

3. Data

4. Product evolves

5. Increased user engagement and more data

Within the data eco-system…

Page 46: The Business of Big Data - IA Ventures

Data Economies of Scale

1. Product

2. Users

3. Data

4. Product evolves

5. Increased user engagement and more data

Within the data eco-system…

Page 47: The Business of Big Data - IA Ventures

Big Data Team

Page 48: The Business of Big Data - IA Ventures

Big Data Team

Data science Scalable distributed architectures

Page 49: The Business of Big Data - IA Ventures

Big Data TeamData DNA

Page 50: The Business of Big Data - IA Ventures

Thank you!

Ben Siscovick@bsiscovick

[email protected]

Andrew Cove@andrewacove

[email protected]