{"id":127405,"date":"2021-09-08T09:23:24","date_gmt":"2021-09-08T16:23:24","guid":{"rendered":"https:\/\/lifeboat.com\/blog\/2021\/09\/scientists-develop-ai-to-predict-the-success-of-startup-companies"},"modified":"2021-09-08T09:23:24","modified_gmt":"2021-09-08T16:23:24","slug":"scientists-develop-ai-to-predict-the-success-of-startup-companies","status":"publish","type":"post","link":"https:\/\/lifeboat.com\/blog\/2021\/09\/scientists-develop-ai-to-predict-the-success-of-startup-companies","title":{"rendered":"Scientists develop AI to predict the success of startup companies"},"content":{"rendered":"<p><a class=\"aligncenter blog-photo\" href=\"https:\/\/lifeboat.com\/blog.images\/scientists-develop-ai-to-predict-the-success-of-startup-companies3.jpg\"><\/a><\/p>\n<p>A study in which machine-learning models were trained to assess over 1 million companies has shown that artificial intelligence (AI) can accurately determine whether a startup \ufb01rm will fail or become successful. The outcome is a tool, Venhound, that has the potential to help investors identify the next unicorn.<\/p>\n<p>It is well known that around 90% of startups are unsuccessful: Between 10% and 22% fail within their \ufb01rst year, and this presents a significant risk to venture capitalists and other investors in early-stage companies. In a bid to identify which companies are more likely to succeed, researchers have developed <a href=\"https:\/\/phys.org\/tags\/machine-learning+models\/\" rel=\"tag\" class=\"\">machine-learning models<\/a> trained on the historical performance of over 1 million companies. Their results, published in KeAi\u2019s <i>The Journal of Finance and Data Science<\/i>, show that these models can predict the outcome of a <a href=\"https:\/\/phys.org\/tags\/company\/\" rel=\"tag\" class=\"\">company<\/a> with up to 90% accuracy. This means that potentially 9 out of 10 companies are correctly assessed.<\/p>\n<p>\u201cThis research shows how ensembles of non-linear machine-learning models applied to <a href=\"https:\/\/phys.org\/tags\/big+data\/\" rel=\"tag\" class=\"\">big data<\/a> have huge potential to map large feature sets to business outcomes, something that is unachievable with traditional linear regression models,\u201d explains co-author Sanjiv Das, Professor of Finance and Data Science at Santa Clara University\u2019s Leavey School of Business in the US.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A study in which machine-learning models were trained to assess over 1 million companies has shown that artificial intelligence (AI) can accurately determine whether a startup \ufb01rm will fail or become successful. The outcome is a tool, Venhound, that has the potential to help investors identify the next unicorn. It is well known that around [\u2026]<\/p>\n","protected":false},"author":396,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[43,45,41,6],"tags":[],"class_list":["post-127405","post","type-post","status-publish","format-standard","hentry","category-business","category-finance","category-information-science","category-robotics-ai"],"_links":{"self":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/127405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/users\/396"}],"replies":[{"embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/comments?post=127405"}],"version-history":[{"count":0,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/posts\/127405\/revisions"}],"wp:attachment":[{"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/media?parent=127405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/categories?post=127405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/lifeboat.com\/blog\/wp-json\/wp\/v2\/tags?post=127405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}