Venture capital in an age of algorithms


See on Scoop.itData Nerd’s Corner

Data is an ever-more important element in business decision-making, so why isn’t venture capital keeping up? When will the industry move from intuition to algorithms?

Carla Gentry CSPO‘s insight:

Venture capitalists (VCs) hear lots of pitches from startups, and usually use their personal intuitions to separate the good from the bad. For an elite few, this intuition-driven process has delivered fantastic returns. Yet most of the roughly 500 US-based VC funds have performed rather poorly, with the national venture capital index showing negative industry returns for the 2000 – 2010 decade. This isn’t meant to give VCs a hard time; picking winners is tougher than it looks. But why not branch out into a more data-driven approach?

See on gigaom.com

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