We Are Updating Mattermark’s Company Ranking Algorithm & Introducing the Growth Score

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Today we are excited to introduce our first official update to the company rankings in Mattermark. The “Mattermark Score” has been split into two new indicators, each with more descriptive names: the Growth Score and the Mindshare Score. Our job is to help dealmakers find the most promising prospects, and these scores are algorithms we’ve created to filter out the signal from the noise. We weigh billions of data points to return a useful ranked list organizing the 800,000+ companies in Mattermark.

The Growth Score is now the default ranking for all companies in Mattermark. It works by counting a company’s website visitors, mobile downloads, social media metrics, employees, and publicly announced funding, all tracking how these numbers change over time. The underlying assumption is that companies who see growth across these signals are shipping product and talking to customers, and are more likely to continue to grow as a result.

The Mindshare Score is the original Mattermark Score with a new name. It combines web, mobile and social traction to summarize a company’s growth of online attention. Think of it as a subset of the Growth Score that accounts for social signals and the company’s ability to gain and retain attention online.

To get a sense of how today’s update changes the default list of companies you’ll discover on the first page of results in Mattermark, take a look at the different between the results when sorted by highest Mindshare Score (the old Mattermark Score) versus the new Growth Score:

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As you can see, these new rankings move several unicorn startups to their rightful spots in top positions, and reveals many of the fastest growing and most valuable private companies. Applying additional filtering such as stage and geography helps bubble up opportunities that fit with specific prospecting criteria.

For example, take a look at the top ranked Series C stage companies in the Bay Area:

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How Are These Scores Calculated?

Our original rankings began with the Mattermark Score, which is an algorithm created by Danielle Morrill, Kevin Morrill and Andy Sparks — the founders of Mattermark. The Mattermark Score is still in use today, but as we continue to collect more data and learn more about the problems we are solving it has become part of a larger set of algorithms that power scoring and ranking of companies.

These algorithms are extremely valuable to our business, and will remain “black box.” The exact formulas for calculating these scores, which will continue to evolve over time, are not going to be revealed. Users can observe the inputs (the same raw data you can view in Mattermark) and benefit from the output (the company rankings) but what happens in the middle is the secret sauce we’re developing. Instead of agonizing about how we’ve built our scoring system, we encourage customers to use our data to build their own models and deepen their analysis to get an edge beyond what we provide.

Mattermark customers also can also build their own scoring algorithms by applying custom weights to the dataset through our web-based interface. Any Mattermark customer can run ad-hoc models against our entire set of companies, returning the results of their Custom Score in seconds. To give you some sense of how powerful this can be, just try doing the same thing with a 800,000 row spreadsheet in Excel.

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Garbage In, Garbage Out

A model is only as good as the data put into it, and that’s why we’re on a mission to deliver the most comprehensive historical dataset of business growth signals. The universe of companies we currently cover includes more than 800,000 startups, technology enabled service businesses, and other businesses with rapidly growing online presences.

Beyond broadening company coverage, we are doing groundbreaking work in cleaning and organizing business information using machine learning (and we’re hiring!). Mattermark is your outsourced data science team, building the data collection, machine learning, and analysis processes to give you deal prospecting superpowers at a fraction of the cost. Our customers’ expectations for the kinds of questions they should be able to answer, and data we should make available, will continue to climb as we open up new lines of questioning.

Udi Manber of Google said it well in a 2010 blog post:

“One of the key things about search is that users’ expectations grow rapidly. Tomorrow’s queries will be much harder than today’s queries. Just as Moore’s law governs the doubling of computing speed every 18 months, there is a hidden unwritten law that doubles the complexity of our most difficult queries in a short time. This is impossible to measure precisely, but we all feel it. We know we cannot rest on our laurels, we have to work hard to meet the challenge.”

It is not known exactly how many businesses there are globally, but estimates range from 250 to 300 Million and growing. Our goal is to track all of them with Mattermark, and if this first 18 months is anything to go by we definitely have our work cut out for us. Our data set is already growing a millions of rows per hour, and this is just the beginning.

I look forward to sharing many more improvements to our rankings and other tools as we go. If you haven’t yet, please sign up for a free trial and check us out.

Mattermark Daily – Sunday, October 19th

Published on in Venture Capital , , , by

From the Investors

Tomasz Tunguz of Redpoint Ventures points out why he thinks voice is the future in “The Fastest User Interface

Li Jiang of GSV Capital explains the two monopolies ‘Built to Last’ companies must have in “10X Durability

Fred Wilson of Union Square Ventures and Manoush Zomorodi of WNYC talks with Author Steven Johnson about science and the future of innovation in “How We Got To Now Talk” (video)

Phil Anderson of IDG Ventures USA states that gaming industry acquisitions thus far in 2014 will double all of 2014 in “Game On: Why I’m Still Investing in Gaming

David Cummings of Atlanta Ventures poses questions that should have good answers or ‘your business will fail’ in “7 Questions Every Entrepreneur Needs to Answer

Piotr Wilam of Innovation Nest motivates Eastern and Central European software developers to join startups in “Technical Co-founder

Ishaan Malhi of Playfair Capital opens up about his experiences learning to be an EIR in “An Entrepreneur In Residence at a Venture Capital Fund

From the Operators

Justin Kan of Y Combinator, Walker Williams of Teespring and Stanley Tang of DoorDash share what they learned from ‘manually’ building their startups in “Lecture 8: Doing Things That Don’t Scale” (video)

Matthew Gallizzi of HX Works sheds lights on the importance of founders embracing vulnerability in “How To Respect Your Startup’s Context (And Grow Quicker)

Kyle Samani of Pristine goes to extreme lengths to raise his first $1 million without a product in “The Entrepreneur Hustle

Alex Danco of Backtrack says to find ideas in ‘situations we encounter in life that are completely and totally backwards” in “Theatres of The Absurd: How To Get Startup Ideas

Mattermark Daily – Thursday, October 16th

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From the Investors

Tomasz Tunguz of Redpoint Ventures finds ‘the best companies are able to maintain or even accelerate their revenue per employee’ in “Benchmarking SaaS Startup Efficiency with Revenue Per Employee metrics

Michael Arrington of CrunchFund offers his opinion of recent allegations about Whisper in “Who’s Lying About Whisper?

Jason Lemkin of Storm Ventures recommends investing in your ‘revenue team’ before it’s too late in “Why You’ll Need Just About $3,000,000 to Build Your First Real Sales & Marketing Team

Alexis Ohanian of Y Combinator and Baratunde Thurston of Cultivate Wit discuss entrepreneurship, comedy and ‘being real’ in “Episode 1: Authenticity at Scale with Baratunde Thurston” (audio)

David Cummings of Atlanta Ventures encourages managers to dream about their startup’s growth possibilities in “Run the 10x Scenarios

Angel Investor Joanne Wilson learns a lesson in investing after not securing pro-rata rights in “The Investment Life

Brad Feld of Foundry Group advises startup mentors to ‘go deep with one company at a time’ in “Mentors 8/18: Adopt At Least One Company Every Single year. Experience Counts

Fred Wilson of Union Square Ventures is thrilled about HBO Go’s announcement, saying ‘direct (customer) relationships are the best’ in “Good Things Come To Those Who Wait

From the Operators

Zach Holman of Github explains his view on the ‘physics’ of good startups vs. bad startups in “Inertia

Mike Estee of Other Company Co. does what many hardware companies don’t do – he details his failures and wins in “Confessions of a Hardware Startup

Rik Lomas of Picfair guides founders through critical phases of building a company in “How to Start a Startup Without Ruining Your Life

Jake Wood of Team Rubicon gives a list of ‘no bull’ behaviors he leads his team with in “The Only 4 Employee Values You’ll Ever Need

Andrew Leonard of Backchannel by Medium cites six design rules on ‘disability’ products ‘that raise and suspend questions’ in “All Technology is Assistive