Big investors have typically shied away from taking punts on untried, new ventures. Instead, they put their money in large firms, hoping for innovative practices to emerge from there. Even large firms themselves prefer getting their services being offered by established vendors. Yet with the democratization of data and the advent of startups, things are changing now. The giant organizations are unsatisfied with the present usage of technologies. They also wish to avoid the path of intermediaries between themselves and the providers themselves as heavy commissions get charged. Fintech or financial applications is one field where maximum business innovations can still take place. One of the reasons for this trend of startups altering investment patterns, is the usage of enormous granular chunks of data to provide meaningful business intelligence as several startups like Orbital Insight ate providing. Some startups like Sky-mind are using Deep Learning capabilities for such analysis. Some investment-tech firms are using tools such as Pre-data for mining high volume social data to extract business trends. Machine intelligence algorithm tools such as Tensor Flow are now available to a larger audience, allowing its integration to business needs. Startups will in the near future have better prospects at getting larger investment chunks from endowment and foundation managers.

Source:https://hbr.org/2016/10/startups-could-fundamentally-change-the-way-big-investors-operate?referral=00563&cm_mmc=email-_-newsletter-_-daily_alert-_-alert_date&utm_source=newsletter_daily_alert&utm_medium=email&utm_campaign=alert_date&spMailingID=15725790&spUserID=OTY0OTMwNTk5NwS2&spJobID=881858090&spReportId=ODgxODU4MDkwS0