Good morning to all new and old readers! Here is your Wednesday edition of Capital Ideas, exploring four startup ideas and five success stories from the last week to help you find your next business or investment.

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Today’s edition:

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Alex

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Ideas

1: Information Business for Hedge Funds

The easiest way to get more paying customers is often to make your customers more money than they’re paying you.

That’s the premise of this idea.

Hedge funds make for a great customer base because they’re relatively price-insensitive as long as you’re providing them with what they need to make more money.

And in the hedge fund world, nothing is more important than insider information—aka anything that gives them a competitive advantage.

The play here is relatively simple:

• Use AI to scrape all information about a given company (news articles, financial statements, press releases, etc)

• Compile the information with the key points laid out

• Start with the big tech companies and compile a database

• Pitch to hedge funds that you have data that could help them make decisions in the tech industry

Currently, only 48% of large firms are investing in alternative data, which means that they’re looking for the latest and greatest information.

The TAM here is huge, and the industry is ever-changing.

The best part is that you aren’t coming up with any information or analysis yourself, you’re simply compiling the information and feeding it to the people who need it.

As you compile more information into your database, you can add more companies and become the biggest data provider for hedge funds looking to gain the slightest competitive advantage.

Aside from compiling information, here are a few other ideas this week:

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