10 Tools for Understanding and Dissecting an Industry

Whether you’re a startup founder, angel investor or VC, you’ve probably had the need to quickly understand an industry. Dissect the supply and value chain, understand how money flows and what companies are playing in each category. Wouldn’t it be great if you could quickly understand what’s going in mobile gaming, SaaS, marketplaces, etc?

GLG HOMEPAGEI remember the first time I met Mark Gerson, the founder of expert network company Gerson Lehrman Group (where I previously worked), as he described how Gerson Lehrman Group (GLG) first started. Investors (mainly hedge funds at the time), needed a way to quickly understand an industry they were going to invest in. One day could be pharma and the next, commercial real estate. Resources abound online, but the noise-to-signal ratio is high, and the content needs to be verified and curated. So he teamed up with a few PhDs and set off to write a book about each major vertical – Healthcare, Technology Media and Telecom, Energy and Industrials, Retail and Consumer Goods, etc.  A few hedge funds bought the books and Mark went to ask for feedback. The books are great, they said, but who has time to read them? They wished they could speak with THE person (or people) that can answer all their questions right now. GLG continued to build it’s expert consulting network in the years to follow to become one of the top primary research tools for institutional investors because they have helped their customers to make things simple quickly.

“Simple can be harder than complex: You have to work hard to get your thinking clean to make it simple. But it’s worth it in the end because once you get there, you can move mountains.” 
Steve Jobs

Whether you’re a startup founder, angel investor or VC, you’ve probably had the need to quickly understand an industry. Dissect the supply and value chain, understand how money flows and what companies are playing in each category. Wouldn’t it be great if you could quickly understand what’s going in mobile gaming, SaaS, marketplaces, etc?

As Steve Jobs said, it’s hard work to make complex things simple, so I wanted to share a few resources that helped me simplify industries and verticals. There’s quite a range of information sources from curated reports to aggregated data.

1) Industry reports

Companies like Gartner, Forrester or eMarketer regularly produce reports about tech trends and verticals. These tend to be high quality, but expensive. Tip: many of the top business schools subscribe to these resources, so MBA students have access to these for free sometimes. Investment banks and financial services firms like EY, KPMG or Deloitte are also excellent sources for industry reports. Corporates offer great insights as well from time to time, but you may have to dig deep in their websites to find it. Here’s examples from Google Market insights, CiscoMicrosoft Research, IBM Research or this IHS report on Wearable tech. Usually, the information is high quality.

Cloud report Cisco

2) Infographics and LumaScapes

“LumaScapes”, the one-pager infographics created by consulting firm Luma Partners, provide a quick snapshot of the various parts of an industry and the logos of the companies playing in that space. Check out the Digital Capital LumaScape below. Other LumaScapes include  Content Marketing,  Gaming and several more, which were previously covered here on VC Cafe.

Lumascapes are a great way to visualize the various players in an industry, on one page

3) OnePagers.io

Yesterday I came across Onepagers, and was instantly intrigued. This new resource by Clement Vouillon aims to crowdsource the most relevant info on a certain vertical. Pages are already available for Marketplaces, SaaS and Security Software, with several others planned. I’ve asked Clement for his top sources and in his own words on ProductHunt:

The first stage is basically “search” only and requires time and effort. The sources are mainly Google, Twitter, Quora, industry and tech blogs for the resources and for the startups Angel List, Crunchbase and producthunt.

The second stage requires more “analysis” and the hardest thing is to get a clear picture based on hundreds of resources you’ve just read. The more you do it the more you get used to it actually. So for each trend I need to read a lot, to think about it a lot and then to stop completely for some time. Then it’s easier to have a clearer picture and to create the competitive landscape.

4) VentureScanner

Imagine you could hire a consulting analyst. VentureScanner effectively offers this as they provide sector focused analyst coverage on a range of sectors (from 3D printing to the future of TV). 30 days free trial then $99 a month.

 

"We start with a real-time market landscape, complete with a comprehensive map of companies categorized by sector, funding information, and curated articles from around the web."
“We start with a real-time market landscape, complete with a comprehensive map of companies categorized by sector, funding information, and curated articles from around the web.”

5) Evolita

Visualizing the data is half the battle. Israeli startup Evolita (still in alpha) takes a variety of publicly available resources and plots them on pleasantly looking graphs.

Evolita research visualizaton

6) CB Insights

CB Insights regularly produces data-driven reports and analysis on venture capital, private equity, angel investment, mergers & acquisitions, IPOs and emerging high-growth industries. Also recommend checking out the research blog.

CB insights investor_portfolio

7) Mattermark

Mattermark’s goal is to track growth signals from all private tech, media and telecom companies. Mattermark assigns a score to private companies, determined by the growth of 6 signals: web traffic, mobile downloads, inbound links, Twitter followers, Facebook page likes and Linkedin followers.  Mattermark also ranks investors performance by tracking dozens of growth signals including web traffic, mobile downloads, inbound links, employees, and social media for more than 200,000 private companies. Using this service makes it easy to see where VC money is flowing and what companies are performing.

Mattermark investor ranking

8) Clarity

Clarity.fm, similar to Google Helpouts, offers an on-demand expert network for startups. The San Francisco based startup offers a marketplace for expertise, where entrepreneurs are able to ‘consult’ with experts on a pre-determined price per-minute. Want to really understand an industry? There’s nothing like speaking to the people who are in it.

9) Quora

Quora offers a wealth of knowledge, where experts take the time to elaborate on a thoughtful response. The challenge is that quality varies and many great questions remain unanswered. So, if you want to build good karma, answer a few questions where you bring expertise and help this community grow. Here’s a good answer for the purpose of understanding industries: How does the TV industry work?  and here’s a poor one for comparison How does the Fashion industry work?

10) Google Data Explorer and Google Market Insights

Originally launched in 2010, the Google Data Explorer makes large, public-interest datasets easy to explore, visualize and communicate. The tool aggregates various publicly available datasets and helps you plot them on graphs (see example below). Google Insights shares the studies conducted by Google on various industries from high-level visions to deck-ready data points. 

Check out the Databoard for Research insights to get the up to date stats for your research or build your own infographic.

Bonus

11) Whale Path – 

Whale Path provides on-demand, fully customized market research and competitive analysis by letting the user define their research needs and outsourcing the research bit to a pool of qualified researchers. Quotes are provided within 48 hours.

12) Data Fox

Datafox transforms thousands of unstructured data sources (media, articles, press releases, pricing pages, etc) into insights and compares leading growth indicators for 400,000+ public and private companies. Free for 30 days and subscription packages available. 

Find all the companies to track in a certain category with DataFox

Ultimately, you have to curate your resources. My recommendation is to use these in a mosaic approach, piecing together bits of information that will eventually create the big picture. It’s not enough to list the companies in the industry, or know who got funded, but if you’re able to understand the value and supply chain and add company information on top, you’re getting close. For that reason, OnePagers.io excites me the most. I look forward to seeing what will come out of it once it’s open to the crowd for curation.

Follow me
Co Founder and Managing Partner at Remagine Ventures
Eze is managing partner of Remagine Ventures, a seed fund investing in ambitious founders at the intersection of tech, entertainment, gaming and commerce with a spotlight on Israel.

I'm a former general partner at google ventures, head of Google for Entrepreneurs in Europe and founding head of Campus London, Google's first physical hub for startups.

I'm also the founder of Techbikers, a non-profit bringing together the startup ecosystem on cycling challenges in support of Room to Read. Since inception in 2012 we've built 11 schools and 50 libraries in the developing world.
Eze Vidra
Follow me
Total
0
Shares

Comments are closed.

Previous Article

Israeli Consumers Prefer ONLINE Media

Next Article

Biz Dev Tips for Startups - The 'First Meeting'

Related Posts
How to raise capital in Silicon Valley from VCs
Read More

How Can Israeli Startups Raise Funding in Silicon Valley?

VC investors rely heavily on referrals, but what should a non US startup do when looking to raise funding in Silicon Valley? I found a question on Quora that relates to European startups, but found that some of the advice may be very relevant to Israeli startups as well. How best can European startups land VC funding in the US / Sillicon Valley?
Read More

Ten Takeaways from Deloitte’s 2010 Israel VC Indicator Survey

Deloitte Touche in Israel produces a Venture Capital and Private Equity survey every other quarter in an attempt to identify trends within the venture capital arena, give a summary of VC expectations of the Israeli VC community for the next six to twelve months. This is the survey 33rd installment in Israel and the responses were collected in June this year.
Total
1
Share