Factual’s Gil Elbaz Wants to Gather the Data Universe

Excerpt from an article in

The New York Times (Business)

Sunday, March 25, 2012

Factual’s Gil Elbaz Wants to Gather the Data Universe

By QUENTIN HARDY

BEVERLY HILLS, Calif. AT 7 years old, Gilad Elbaz wrote, “I want to be a rich mathematician and very smart.” That, he figured, would help him “discover things like time machines, robots and machines that can answer any question.”

In the 34 years since, Mr. Elbaz has accomplished big chunks of these goals. He has built Web-traversing software robots and answered some very big questions for Google, along the way becoming a millionaire several hundred times over.

His time-machine plans, however, have been ditched for something he finds more important: trying to identify every fact in the world, and to hold them all in a company he calls Factual.

“The world is one big data problem,” Mr. Elbaz says from his headquarters, a quiet office 14 floors above the Los Angeles Country Club. He is a slim, soft-spoken man who weaves in his chair when an idea excites him. “What if you could spot any error, as soon as you wrote it? Factual is definitely a new thing that will change business, and a valuable new tool for computing.”

In the booming world of Big Data, where once-unimaginably huge amounts of information are scoured for world-changing discoveries, Mr. Elbaz may be the most influential inventor and investor. Besides Factual, he has interests in 30 start-ups, including an incubator in San Francisco dedicated to Big Data. Factual’s headquarters, in a high-rise on the Avenue of the Stars, hosts seminars for a data community he hopes to foster in the Los Angeles area.

Mr. Elbaz also serves on the boards of the California Institute of Technology, his alma mater, and the X Prize Foundation, which offers cash prizes to teams that meet challenges in space flight, medicine and genomics. The company he sold to Google, Applied Semantics, is the basis of Google’s AdSense business, which brings Google close to $10 billion in revenue annually.

While valued for his investments and guidance, Mr. Elbaz remains relatively little-known. He is so self-effacing that he recently walked through a conference of 3,000 data scientists, recognized only by the staff members of one of his investments. He lives quietly with his wife, a former federal prosecutor, and his three children in a modest ranch house in West Hollywood. For fun, he plays basketball at a local sports club.

His mental and financial assets, he says, are like gifts he needs to deploy so the world works better.

“If all data was clear, a lot fewer people would subtract value from the world,” he says. “A lot more people would add value.”

Creating clear, reliable data could also make Factual a very big company.

“Gil is pretty far ahead of the rest of us, the one entrepreneur where it takes a few meetings before I really understand everything he is talking about,” says Ben Horowitz, a venture capitalist who backed Factual through his firm, Andreessen Horowitz. “Three years ago, he thought Factual was his biggest chance to change the world. Over time, the world has moved his way.”