SignalFire raises over $1B as LPs embrace data-driven investing

Thirteen years ago, when Chris Farmer founded early-stage venture firm SignalFire with data analysis at the core of its investment strategy, many were skeptical about the approach — conventional wisdom dictated that nascent companies didn’t have enough data to make investment algorithms effective. “This was a very radical idea, and everyone thought I was crazy,” Farmer (pictured above, on the right, alongside CTO and partner Ilya Kirnos) told TechCrunch. A lot has changed since SignalFire raised its first $53 million fund 2015. Today, more venture firms are adopting data-driven strategies in addition to, or sometimes even instead of, traditional VC methods that often rely on networking. Indeed, several venture firms today claim they use AI to source deals, and we even have some private markets-focused companies that sell analytical tools to help all kinds of investors to do “qualitative diligence.” Still, Farmer feels SignalFire’s approach is unique because, unlike other VCs that u ... Read full article.