Machine learning algorithms are changing the face of venture capital. Crowdfunding platform CircleUp has been using its “ Classifier ” software to prescreen investments for a four year , measuring more than 10,000 data points for each company to determine whether companies warrant further evaluation by humans. Ten years ago, bored by the repetitive nature of his work as a private-equity analyst, Ryan Caldbeck began to think that the job could be done as well by software. Using data accumulated by 92,000 evaluations over two years period has significantly speeded up the screening process. FundersClub , an early entrant in the digital investment platform space uses its algorithms to judge which investors on the platform as best at picking companies in which to invest.
Machine learning algorithms are changing the face of venture capital. Crowdfunding platform CircleUp has been using its “ Classifier ” software to prescreen investments for a four year , measuring more than 10,000 data points for each company to determine whether companies warrant further evaluation by humans. Using data accumulated by 92,000 evaluations over two years period has significantly speeded up the screening process. FundersClub , an early entrant in the digital investment platform space uses its algorithms to judge which investors on the platform as best at picking companies in which to invest.