Algorithmic Venture Capital,Predicting valuation step-up multiple in venture backed companies through deep learning techniques
Exploring deep learning models to predict startup success reveals correlations between startup characteristics and future performance, aiding venture capital evaluation . Venture capital is crucial to the American economy, significantly impacting public markets, R&D spending, and employment. The investment process is traditionally manual and subjective, but machine learning , especially deep learning, can enhance investment decision accuracy , particularly in predicting valuation step-up multiples. Deep learning models outperform statistical methods like linear regression in predicting company valuations, although random forests may be better for regression analysis.
Why is relevant?
Predictive models for startup success aids venture capital in making informed investment decisions based on data-driven insights
Author
Casey Caruso, Abraham Oshotse, Gautam Pradeep
Publication date
December 1st, 2018
Difficulty
Expert
Keywords
- Startup Evaluation
- Deep Learning Models
- Predictive Analytics
- Venture Capital Investment
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