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Machine Learning About Venture Capital Choices

1 pointsby tinco3 months ago

1 comment

tinco3 months ago
European VC&#x27;s missed five unicorns that are currently valued at over 2BN euro each. This study shows that VC&#x27;s misallocate capital in predictable patterns by analyzing a dataset of french companies and investments. These patterns show that they are ignoring objective company metrics and are over-relying on subjective founder qualities.<p>Sounds like a VC firm that employs machine learning might actually out perform firms relying purely on human judgement. Of course the dataset only covered France, so it&#x27;s uncertain if this research would replicate in the much bigger US market.