As the alternative data markets continue to grow aggressively, the idea of monetizing data attracts. You suspect your dataset has significant value but worry that the data is just too sensitive to monetize. Crossing the privacy barriers seems hard and risky.
If you recognize this situation, then this quick guide is for you. Working with customers to monetize their sensitive data, we hear four questions. These questions are common across types of data (finance, government, and healthcare) and company size. Read on to learn how to monetize and protect sensitive data.
Regulations, contracts, and confidentiality requirements put up privacy barriers, which appear hard to climb. But, don’t just ponder the risks.
Instead, refresh your thinking, and ask: What does an investor want from my data? In most cases, the investor wants to work out statistical insights from your data rather than have the data itself. You are selling insights, not data. Data is a means, not an end. Think value and risk, not just risk.
The more different your dataset, the better. Unique datasets have the highest value to investors. Unique means having limited substitutes and coming from one (or a few) sources.
If you haven’t monetized your dataset before that will increase its value to investors. New datasets allow investors to extract fresh insights using quantitative analysis.
Once you’re comfortable you can monetize your sensitive data safely, and it has some expected economic value, it’s time to think about valuation. In plain terms: how much money can I make? Then, you can balance the total value you’re targeting against any incremental deal structuring, software, and operational costs.
Instant answers on data valuation aren’t possible or responsible. LeapYear can work with you to assess how much value potential your data might have. Get in touch to discuss.
Traditional approaches to monetization trap value and don’t protect privacy well. Methods such as aggregation, anonymization, and rules are based on myths and obsolete thinking. LeapYear can show you a modern, innovative approach that will help you share sensitive data safely, provably and profitably. We can help in several ways, including:
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