Podcast Summary: David Yakobovitch on Data Power Ventures
Episode Title: David Yakobovitch: Data Power Ventures
Podcast: The Investor With Joel Palathinkal
Release Date: August 2, 2025
Introduction
In this episode of The Investor With Joel Palathinkal, host Dr. Joel Palathinkal welcomes David Yakobovitch, a seasoned data science investor and the driving force behind Data Power Ventures. The conversation delves deep into the evolving landscape of data science, investment trends, and the strategic focus required to thrive in this dynamic field.
Background of David Yakobovitch
David begins by sharing his journey from Florida to New York City, highlighting his academic background and early career experiences that shaped his expertise in data science.
David (00:24): "I was studying actuarial science, finance, and information systems, wanting to go hardcore into data."
His internship at AFLAC introduced him to loss experience monitoring, sparking his interest in cloud technologies and programming languages like SQL, Python, and R. This foundation led him to roles at major corporations such as Deutsche Bank, Citigroup, and ADP, before taking the entrepreneurial leap into the startup ecosystem in New York City eight years ago.
David (03:55): "I think one of the best things about being in New York is the fast-moving pace of the lifestyle."
Data Power Ventures – Focus and Strategy
David discusses the inception and mission of Data Power Ventures, emphasizing their commitment to making every company a data company. The fund specializes in AI, machine learning (ML), and data science, standing out among niche funds by targeting data-intensive applications and real-time insights.
David (09:27): "We narrowed down into data intensive apps, real-time insights, data developer tools by focusing on data power, those infrastructure layers, those insight layers, and those prediction layers of the economy."
He highlights the importance of building strong mental models based on expertise, allowing the fund to make informed investment decisions in a vast and complex industry.
Trends in Data Science and AI
The conversation transitions to the broader trends in data science and AI. David outlines a four-layered approach to the data industry:
- Data Collection: Automating manual processes like labeling and aggregating datasets.
- Real-Time Insights: Tools and dashboards tailored for specific industries to provide immediate data-driven insights.
- Predictive Insights: Traditional ML applications that offer real-time predictions, enhancing decision-making processes.
- AI Layer: Utilizing advanced AI technologies like OpenAI's GPT-3 to generate natural language processing, create generative images, and develop self-learning systems.
David (15:22): "We're seeing over 98% of the cost to run an application is the compute of running the insights, not the fetching, transmission, or storage of the data."
Quantum Computing’s Role
Joel inquires about the role of quantum computing in the data ecosystem. David acknowledges its potential, sharing insights into early-stage quantum startups and their applications:
David (16:02): "Quantum will have its day and there have been some unicorn IPOs there as well. I just think it's still the early days and we need to find the commercially viable business cases to work with."
He cites examples like quantum startups improving global GPS accuracy and enhancing trading systems' efficiency, underscoring the transformative impact quantum computing could have once it reaches scalability.
Advice for Aspiring Data Science Investors
David offers valuable advice for individuals looking to pivot into venture capital (VC), particularly in data science:
- Start with What You Know: Leverage existing expertise to inform investment decisions.
- Engage with Networks: Partner with accelerators like Techstars and participate in angel networks to gain experience.
- Build Slowly: Begin with small investments or syndicates to develop a track record.
- Community Involvement: Foster relationships with LPs and industry experts to enhance due diligence and investment strategies.
David (29:34): "Roll up your sleeves. Hey, I'll help you with technical due diligence."
Community and Networking
Community-building is a central theme in David's approach. He emphasizes the importance of fostering a strong network of investors, founders, and technologists through events like tech dinners and podcasts.
David (20:28): "Community is everything. Absolutely."
He also highlights initiatives like the Data Pledge, promoting ethical and responsible use of data, showcasing his commitment to collaborative and transparent practices.
Final Advice and Life Lessons
Concluding the episode, David shares a profound piece of advice from his mentor:
David (34:03): "Consider that what you're building is best in class. Consider you're building the next Blackstone and that what you're building is ready and that you're good enough to launch and scale what you want to do."
He underscores the importance of confidence, collaboration, and continuous improvement without striving for perfection.
Conclusion
This episode provides a comprehensive look into the intricate world of data science investment through David Yakobovitch's experiences and insights. From understanding the layered structure of the data industry to navigating the complexities of venture capital, listeners gain valuable knowledge on building and scaling data-driven ventures.
Notable Quotes:
- David (00:00): "A lot of these big data players who have scaled are now going public. But that doesn't mean that the war has been won."
- Joel Palathinkal (09:27): "You want to build the best mental models so you can decide how they make investments."
- David (15:22): "We're seeing over 98% of the cost to run an application is the compute of running the insights, not the fetching, transmission, or storage of the data."
- David (29:34): "Roll up your sleeves. Hey, I'll help you with technical due diligence."
- David (34:03): "Consider that what you're building is best in class. Consider you're building the next Blackstone and that what you're building is ready and that you're good enough to launch and scale what you want to do."
This detailed summary encapsulates the essence of the podcast episode, providing listeners with a clear understanding of the key discussions and insights shared by David Yakobovitch and Dr. Joel Palathinkal.