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*#Within one month of the quarter end financial statements are sent to India*#The contractor in India 'converts' the data into electronic format within one month*#SVB Analytics staff clean and validate the data.*#Within three months of the quarter end the data is uploaded to the Birst web-platform The first two steps above should be elaborated. The CRM (Customer Relationship Management) team gets the filings and notes the stage of their relationship with the customer on it. The 'Credit Team' (which is partly in the US and partly in India [EJE]) then uses [http://www.moodyskmv.com/products/dc_riskAnalyst.html Moody's Risk Analyst] to 'spread' the financial statements into a database. Data is then 'reshaped' to clean it up and to remove "prospects" sections and other data that for contractual reasons are restricted; the spreading and the reshaping combined result in a loss of granularity, but standardization. Firms are tagged with a CIF number, which is unique to the firm, as well as a Customer ID. There may be N-1 relationship between Customer ID's and firms, as some customers may be responsible for many firms, however, most of these are apparently 1-1. Each statement is then assigned a Statement ID. In addition, the credit team assigns a "risk-stage" code to each statement. When the SVB Analytics staff get the data back they get a table called "T_Moodys" which contains all of the financials keyed by both CIF and StatementID. They then clean this up further, removing duplicate statements and errors, and add extra codes, including a "development stage code".
Silicon Valley Bank Data Project (view source)
Revision as of 22:04, 28 February 2011
, 22:04, 28 February 2011no edit summary
In January 2011, two representatives [http://www.svb.com/ Silicon Valley Bank] gave a presentation at the Haas business school, organized by [http://entrepreneurship.berkeley.edu/main/engel.html Jerry Engel] of the [http://entrepreneurship.berkeley.edu/ Lester Center for Entrepreneurship and Innovation]. The purpose of this presentation was to explore the possibility of having Haas PhD students and faculty conduct research with the SVB's data. This page details findings from that meeting and the follow-up on-site meeting between SVB and a Haas's representative, Ed Egan.
==The January 18th Meeting (at Haas)==
*Stage of development
The data exists in two databases: an operational database, and a development database which is populated by quarterly draws from the the operational database. Both databases run on an Oracle platformand the SVB Analysis group uses the [http://www.toadworld.com/Freeware/ToadforOracleFreeware/tabid/558/Default.aspx Toad] client to run SQL statements on it. The development data is validated and cleaned manually by SVB staff, and we could expect draws from this source. The data lives in a series of (flat) tables, with the main table containing the financials keyed as CompanyName-DateOfFinancials, and other tables, such as for the year of founding, keyed by CompanyName.
SVB takes data from the validated and cleaned development database and uploads this onto their online [http://www.birst.com/ Birst] based web-platform, to provide their benchmarking service. Companies accessing this data through the Birst interface are restricted the selecting aggregate benchmarking portfolios to compare their firm against. The interface allows them to construct portfolios on the basis of geography, industry, comparability in terms of financial ratios, and so forth, and reports the size of the comparing portfolio as either 5-30 firms, 31-100 firms, and so forth. Firms are restricted to seeing comparison portfolios composed of at least 5 firms. SVB is trying to advance this service into a CEO desktop tool, which will report things like [http://willprice.blogspot.com/2008/03/magic-number-for-saas-companies.html Josh James' Magic Number] - this requires fine grained data as well as uninterupted sequential financial statements, which is surely good news for researchers going forward.
The process of uploading the data to Birst is as follows:
There is a plan in progress to shorten this process and to move to monthly financial data. Specifically, SVB are considering allowing/facilitating input from Quickbooks and other accounting systems, to get electronic data in predetermined formats directly from their firms.
It seems possible that Haas could enter into an agreement to get a feed of this data simultaneous with the upload to the Birst platform [EJE].
Financial statements can also be accumulated by SVB for reasons other than credit issuance. These include the Entrepreneur Services group that matches (apparently with a 20% success rate [EJE]) VCs to Entrepreneurs, as well as the Emerging Technologies Team that examines sectors for growth. At present these financial statements do not make it into the system described above. However, the Emerging Technologies Team does use the development database, and does mark it with potentially useful codes.
At present SVB gets draw downs of data from VentureSource every six months. They use this data to:
*Validate their own coverage
*Provide reprots to clients (they have 328 charts made every time by a group in India for use in presentations)
*Potentially to enhance their benchmarking service (though this has not been fully implemented as yet [EJE]).
===The CapMx Data===
The CapMx data is a electronic collection of firms' capital tables. In theory it contains the fully detailed capital structure for each firm in the database. The bank works with various law firms, including [http://www.orrick.com/ Orrick] and [http://www.gunder.com/ Gunderson], who 'store' this data in Excel sheets, as well as venture capital funds and the companies themselves (who 'store' this data on paper). The bank responded to this situation by creating and maintaining the CapMx database, to store the data on behalf of their various clients, and to facilitate various transactions on this data. You can fill out a [http://www.svb.com/Products-and-Services/SVB-Analytics/capmx-demo-equity-tracking/ form to view a demo] of the online interface into the CapMX data.
