Picture this: It's 2016.
The world is buzzing with excitement over the advent of self-driving cars, virtual reality, and the prospect of colonizing Mars. Amidst the hype, a tech startup was founded on a different cutting-edge innovation that would soon revolutionize the private market dealmaking landscape.
That startup was Grata, and the secret weapon was machine learning (ML).
Fast forward to today, AI has become the talk of the town. While others scramble to catch up, Grata recognized its potential from the beginning and built ML and natural language processing (NLP) into our DNA. Our commitment to AI sets us apart, and we continue to push the boundaries of what's possible in private market dealmaking with the recent advances in generative AI.
How exactly will AI transform private market investing? Let's take a look at what we believe will be possible within the next five years.
AI Will Surface Better Investment Targets
Gone are the days of tedious keyword searches and sifting through mountains of information. With AI, dealmakers now have access to more advanced search capabilities through semantic processing.
And it’s only getting better.
Instead of guessing at keywords or grappling with Boolean logic, soon you will be able to type exactly what you mean. AI-powered platforms will understand your intent, making the deal sourcing process intuitive and efficient.
Think of it like a conversation with your analyst - you provide feedback and they come back to you the next day with an update. Now replay that, except change the day turnaround to a second. That’s what AI is delivering.
AI Will Personalize Recommendations
AI will go beyond traditional search interfaces. By leveraging reinforcement learning, AI can provide personalized recommendations. Think of it as a dating app for dealmaking. You inform the system about their preferences, likes, and dislikes, and the AI algorithms will learn from this feedback and prioritize investment recommendations, helping you uncover opportunities you might have otherwise missed.
The AI will take into account various factors including your firm’s historical interactions, industry trends, and strategic fit alongside market trends, events, and company updates. This nuanced understanding helps you strike while the iron is hot and make the most of your opportunities.
AI Will Make You Smarter and Scale Your Interactions
When it comes to reaching out to private company executives, AI is already changing the game. While some believe it will help you to write better, more customized emails, email writing is commoditized. Some analysts are already using ChatGPT to do this today and most are unlikely to ditch their templates.
The challenge is how you uniquely message each company. That takes a deep understanding of the market, what makes the business special, and your firm’s angle. The most sophisticated AI won’t give you glorified templates but will help you understand business nuances, again like a personal analyst, so you’re best prepared for real interactions with executives. What used to take hours and days of research will be accessible in seconds.
This means you’ll have more meaningful interactions, engage with more executives, and do better deals.
AI Will Fuel Innovation
Picture this: It’s 2028.
You’re connecting more often and more meaningfully with your network. You’re winning more deals per year. And it’s all because you’ve leveraged the power of AI.
AI has the power to profoundly transform how deals are found and won. As pioneers who built a platform with AI at its core, we continue to lead the charge. We’re leveraging cutting-edge technology to unlock new possibilities in the world of private market dealmaking.