The term "data-driven investor" might sound pedestrian—it’s hard to point to an industry that hasn’t become more data-driven over the past two decades. But in recent years, the private capital industry’s adoption of data-driven insights represents a very real and material shift in how firms are now operating.

As a proxy, one can look at the hedge fund industry for a historic example of this strategic shift. Up until the 1980s, hedge funds were mostly run by Wall Street veterans who used their intuition and connections to make investment decisions. But as more data became available, a new breed of funds emerged that combined quantitative models with human judgment to drive better decisions and reduce cognitive biases. Venture capital and private equity are at a similar inflection point right now. READ MORE