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Artificial Intelligence and Venture Capital
How being data-driven is changing the investment process
“On your way out, make a comment about automating Venture Capitalists” (Robbie Allen).
I. The rationale
Great startups very often stem from a simple idea and a couple of people that identify a specific need and a solution to address an existing market gap. On the other side of the fence, there are angels and venture capitalists (VC), who provide the capital and sometimes the necessary help to make that dream become a reality.
If you are an investor then, there are two things you want to know all the time: where the good companies are (scouting abilities) and how to know whether a specific company will be a good investment or not (cherry-picking ability). The scouting abilities are usually refined through years of networking and branding efforts, while cherry-picking skills are often emerging from pattern-matching, i.e., seeing company over company year over year and trying to…
