A new way of making startup event predictions may pose complications for the industry

⚙️Cruncbase, announced a new Artificial Intelligence (AI) tool that could change how VCs evaluate startups: approach it with caution⚠️

⁉️The replicability of Crunchbase’s back tested 95% AI accuracy going forward in real life is questionable.

🔙When back-testing in a database like they have, it can be extremely difficult to segment what was and wasn’t known on a particular day in the past, especially if the database was not built with AI prediction in mind.

📰TheStreet quoted us regarding this in an article by Samuel O’Brient, “Experts raise red flags regarding new AI startup evaluation tool.“

QUOTED EXCERPT
Michael Ashley Schulman, Partner and Chief Investment Officer at Running Point Capital Advisors questions replicability backtested 95% AI accuracy rate. “We know that Crunchbase continuously adds data to its files but a prediction needs to be made at a single point in time with the information at that moment,” he states.

ALSO QUOTED in the article were:
🟠Kat Wifvat, PhD, AI startup founder
🟠Komninos Chatzipapas, founder of HeraHaven.AI
🟠Elliott Parker, CEO of High Alpha Innovation
🟠Kevin Dominik Korte, angel investor

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