Framework
'Data wants to be free': dig up muddy data and package it
Shaan articulates the recurring MFM model behind CB Insights and Wealth-X: valuable data exists in messy, scattered form, so you scrape it, clean it, organize it, and sell easy access.
“Data's there, it's muddy. We go dig it up, we wash it off, we rinse it, we polish it, we package it, and we say, here you go, here's that data you've been looking for. It was here. Like, yeah, you could have gone and got it yourself, but man, you don't want to go scrub through that mud. Well, let us do that for you.”
Steal thisFind data that's public but painful to collect, clean and organize it, then charge for the convenience of searchable access.
Number
CB Insights top tier costs $250,000 a year
Sam reports that research firm CB Insights, which helps PE firms decide which company to buy next, prices its top tier at $250,000 a year, framing the whole business as a 'cover your ass' service.
$250K
Top-tier annual subscription price · USD/year
“But if you go to their pricing, their top tier pricing is $250,000 a year. And I go, what is CV Insights? And he was like, basically we are a cover your ass, cover your ass, CYA.”
Fact
CYA buying: firms pay six figures for a name to cite, not the analysis
Shaan explains why firms pay $50k-$250k for Gartner/CB Insights research: nobody cares about an employee's personal opinion on a market, so you buy a third-party report to cite, justify budget and headcount, and avoid putting your own name on the line. It's 'insurance for schmucks.'
“What Sean needs to do is go and get these great reports that are done by third-party consultancies or research firms pay thousands of dollars for our annual subscription to those reports and pull out a number that says Russia's mobile market is growing at 30% CAGR. Okay, great. That's the thing I need to justify the budget I'm asking for, to justify the headcount I'm asking for, to get the green light on my project.”