Dubai, UAE: An exclusive interview with Global Millennial Capital Founder & General Partner, Andreea Danila
- Please introduce yourself and tell us more about Global Millennial Capital strategy and its area of specialty?
My name is Andreea Danila, I am the founder of Global Millennial Capital, I am a strategist, innovator, venture capitalist and entrepreneur. Global Millennial Capital is the first venture capital firm from the Arab world to introduce the concept of deep learning and artificial intelligence and revolutionize the traditional way of investments evaluation and decision approach. We invest in global scalable, tech enabled and highly transformational consumer-centric early-stage opportunities in Silicon Valley making these unique opportunities accessible to a private group of investors from the region.
- Please tell us more about your areas of focus, and please describe your company’s strategy towards utilizing data science and AI.
I developed the concept of deep learning while studying at MIT in 2020 in parallel to doing my general management program at Harvard Business School. I wanted to solve the challenge of venture capital random returns distribution and understand how many bets a fund manager needs to place to generate above 50x CoC return for at least 6% of its investment portfolio. Today, 90% of the venture capital funds do not return more than 1x of investor capital due to lack of access or quality deal pipeline. For venture capital funds to generate between 2x to 4x cash on cash return, investment managers would require multiple offices in various jurisdictions, with teams comprising 30 to 40 analysts or losing control of the deal process by outsourcing to fee-based referral networks.
Millennial Ai, a proprietary data science algorithm of Global Millennial Capital presents a revolutionary solution to the ongoing issue of access to quality deal pipeline. We constructed a world of opportunities by analyzing global venture capital big data and being able to assess with confidence investment data points within clusters, investment stages, models and context as well as provide unique company linked algorithm assessments. We can analyze between 15,000 to 20,000 companies today with an increased potential in the coming months.
- Please tell us more about your areas of focus with the fund and investments completed to date.
Global Millennial Capital private investment fund has completed 10 investments in the US with an aggregate portfolio value of USD 152 million as of October 2021. Our vision is to become the venture capital fund of choice for regional investors, positioned at the intersection of fintech and investment management by providing access to Silicon Valley curated opportuntities. We are extremely excited about the outlook of our technology as well as our portfolio companies as we continue to disrupt the traditional wealth management space in collaboration with the financial regulators within various jurisdictions which enable us to carry our activities within the institutional grade guidelines as a regulated private investment fund.
- Please tell us about your investments completed to date.
Our portfolio strategy focuses on the fintech vertical where we observe attractive statistics such as funding velocity and investor propensity but also shorter investment period to unicorn status. Financial services are transforming driven by digitization, on demand and hyper-personalization led by the requirements of millennials and GenZs, the emergency of DEFI, crypto and blockchain as well as accessibility of financial solutions to masses for banked and unbanked consumer groups. We surely excited about various of our portfolio winners with companies like Envel, a fintech which uses artificial intelligence to automate your personal finances, as well as Rocket Dollar who provides investment freedom by unlocking the retirement plan into alternatives, Financial Choice a robo-advisor who provides liquidity for mutual funds, bonds and equity markets instantly by transforming your checking account and adding investment features. We have sourced and analyzed around 10,000 fintech companies globally with our team of data scientists creating a fund collective intelligence which enables us to understand clusters, trends, statistics, criteria and benchmarking globally across investment stages.
- Data is the new oil for the future economy. How do you use data and technology in planning and finalizing strategic decisions for the venture capital industry?
Venture capital (VC) has been growing rapidly in recent years. So far, the screening and evaluation of potential startups as investment objects depends on the venture capitalist’s personal experience, network and qualitative evaluations. In the era of big data, the advent of new data sources and analytic techniques enables a data-driven investment process. Our analysis shows that the data-driven approach impacts the deal origination and screening stages of investment. It leads to informational and transactional benefits, which lower operational costs in the short term and enlarge the potential return on investment of a VC firm in the long term. We believe that the introduction of automation or data driven assessment models are providing us a significant competitive advantage over our competitors along with an advanced knowledge-based approach which will significantly differentiate our investment returns.