TRAC Challenges Traditional Venture Funding with Innovative ‘Moneyball’ Approach to Business Investment

TRAC

March 4, 2022 / Sarah Lesperance / Customer Stories

TRAC challenges traditional venture funding with an innovative ‘moneyball’ approach to business investment.

Creating a successful venture capital (VC) firm is not easy. There’s a sea of available capital and there are more venture firms than ever. But the VC industry’s collective track record is not great. Many firms still have a high failure rate when investing in companies, and many of the investment decisions are still made based on relationships and emotion. TRAC started in 2020 to change that approach. Inspired by the fundamentals of data and the possibilities offered by a more quantitative-driven view to venture funding, the company set out to be different from inception.

TRAC has been innovating to bring their needed decisioning data to life. They are a software company, executing like a VC firm. Their expert engineers and data scientists build models, code, technology, and processes to speed up the data flow needed for TRAC and its clients.

“It’s difficult to get into deals these days, but a unique advantage that we offer is our data. Founders like to see that we bring quantitative views that offer value, and will continue to offer value, along their growth path,” said Aaron. The company’s investments in technology qualify it for the U.S. Government’s R&D tax credit and incentive program—a robust government program that rewards companies investing in innovation with tax credits and incentives. In the case of TRAC, the cash that is recouped can immediately be invested back into more innovation, accelerating the company’s growth. TRAC worked with tax incentive and R&D intelligence fintech leader Boast to quantify eligibility and get returns from the program. Boast sped up the process by helping TRAC use Boast’s AI-based software platform and experts to quickly identify qualifying projects and create their submission documents. “They made it easy for our teams,” said Aaron. “Boast delivered the single largest ‘return-ofdollars vs. time investment’ that I’ve experienced in my lifetime. It was just a few hours of collective involvement for the TRAC team, and we got tens of thousands of dollars back. That’s fantastic!”

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