Raw Data Myth Alternative Data Provider Product Strategy
Raw Data Myth Alternative Data Provider Product Strategy
Why “Just Send Us the Raw Data” Is Hurting Alternative Data Providers and How to Respond
If you’re an alternative data provider, you’ve heard this request more than once: “Just send us the raw data. We’ll figure it out.” On the surface, it sounds reasonable. In practice, it frequently leads to poor outcomes for everyone involved.
The Reality Behind the Raw Data Request
While a small number of highly sophisticated quantitative funds can genuinely extract value from unstructured, raw datasets, the majority of buyers making this request are simply looking for early access before the product is market-ready. They may not have the internal resources to clean, structure, and validate unfamiliar data—and even if they do, the process introduces unnecessary friction that delays evaluation and reduces the likelihood of a successful trial.
The bigger risk is what happens downstream. When raw data doesn’t perform as expected—often because it was never properly prepared—providers lose confidence and underinvest in what could have been a strong product. The dataset gets shelved, the revenue opportunity disappears, and the market loses a potentially valuable signal.
A Better Framework for Buyer-Seller Collaboration
The most productive alternative data relationships are built on partnership, not passivity. Instead of accepting raw data requests at face value, providers should engage buyers in a dialogue about what data preparation would materially improve testing and decision-making. Similarly, buyers who invest time in communicating their formatting, frequency, and delivery preferences will get better products and faster evaluations.
Data providers should resist the temptation to give their product away unfinished. And buyers should recognize that helping providers build something they actually want to buy is in everyone’s interest. That’s how the alternative data market grows—through genuine collaboration and investment in product quality.