Machine learning algorithms are changing the face of venture capital. Today, he’s the co-founder and chief executive of CircleUp, an online crowdfunding platform specializing in consumer-goods companies—think food, cosmetics and chain restaurants. Crowdfunding platform CircleUp has been using its “Classifier” software to prescreen investments for two years, measuring 92,000 data points for each company to determine whether companies warrant further evaluation by humans. Using data accumulated by more than 10,000 evaluations over a four year period has significantly speeded up the screening process. The technology is also being used in other areas such as healthcare and education.
Machine learning algorithms are changing the face of venture capital. Crowdfunding platform CircleUp has been using its “Classifier” software to prescreen investments for two years, measuring 92,000 data points for each company to determine whether companies warrant further evaluation by humans. Using data accumulated by more than 10,000 evaluations over a four year period has significantly speeded up the screening process. The technology is also being used in other areas such as healthcare and education.