From now on, robots will decide if that business idea of yours is any good or not.
Telefónica Open Future_ and BigML have announced the creation of a platform which predicts if a start-up business will be successful or not. Its first client is the Catalyst Fund, which will employ this PreSeries Machine Learning technology and try to evaluate early stage start-ups.
The companies believe that by adding robots into the prediction, they can 'reduce biases' and 'lower management'. They do stress that machine learning will complement the human side of fund management, in order to make it more efficient.
The two companies hope their joint venture PreSeries will help identify new potential investments, track the performance of their portfolios and see the potential impact of certain decisions.
During the PAPIs Connect 2016 conference in Valencia on March 14/15, a start-up battle will take place, with the winner being chose by the algorithm alone. After that, sign-ups for the Beta will be available.
For Ana Segurado, Telefónica Open Future_ Global Manager, this joint venture is a win-win for entrepreneurs and investors: “Early stage investing is very complicated, and even the brightest ideas can get nowhere due to a bad execution of their business plan. In the last years, we have seen that around 80% of the startups we meet fail in the first 5 years of development. With the implementation of this innovative and must have technology we can mitigate the risk involved in investing in new business and help the startups implement a better business model to secure their future, what will lead to optimize the business environment for the whole innovation ecosystem”.