A little more than a decade ago, when computers started becoming a norm in companies both big and small, data storage and processing capabilities underwent a huge change. The second phase of this change is happening now, i.e., utilising this trough of data and this is where machine learning and AI are assisting.
The wave has impacted all industries across the spectrum, revolutionising the way things have been operating so far. Needless to say, venture capitalists are also leveraging the game-changing advantages for their daily fodder as well as long-term selections.
How investors put a portfolio together is critical in defining their worth. A lot of factors go into multiple decisions that are taken at different time periods and stages and impact the eventual success. Putting together data from different parts of the world, across sectors and industries, small and big players all combined is an exhausting and time-consuming task.
Gone are the days when a VC would have to travel across different states and countries to find the next ‘unicorn’ or reaching out to potential start-ups as all this information can be accessed using AI with just a click.
Without search engines and sophisticated software, it is impossible to trawl through thousands of start-ups around the globe and shortlist them based on a set of predefined parameters. AI and machine learning have made all this data and bulk of information available at the ease of just a few clicks. Readiness of key indicators and supporting data allows investors to surf through various startups, review their performance, compare them to their contemporaries and then pick the ones that are worth investing.
Besides improving quality & efficiency and saving time, artificial intelligence facilitates a massive scope of increasing scale of work. Data handling can be taken to a whole new level and be a key motivator in transforming the way venture capitalists work. In fact, it is good news for latest as well as upcoming start-ups because technology enables their discovery beyond the boundaries of land and ocean. AI makes it a win-win for both the parties and is thus a welcome advancement in technology.
