Using Machine Learning in Venture Capital
Assessing different ML methods to better score startups
Download the full article: https://ieeexplore.ieee.org/document/8821312
I. Setting the stage
If you have read some of my previous posts, you may know I am very bullish on data-driven funds. The rationale for my optimism is that I fundamentally believe that machine learning can bridge the asymmetric information gap between founders and investors, making both of their lives better and easier.
As part of my work and effort to try to advance the field a bit, I have been doing research on how AI has already been used in VC, but I also wanted to play with data and the following results are the first attempt to do so.
II. A bit of background
After the last financial crisis, the interest rates decreased exponentially and venture capital suddenly became an attractive option to achieve high returns. However, in only a decade the market moved so fast, got so mature and saturated, and so many empires have…
