Friday, March 04, 2016

Don't Get Too Comfortable

Data analytics, aka "Big Data", has revolutionized sports and politics, so why not venture capital? MIT researchers list attributes of high-potential businesses: [bullets added]
  • Their names, for example, tend to be shorter and are
  • less likely to include the founder’s name.
  • They tend to be set up as corporations, not limited liability companies, and
  • they are often incorporated in Delaware, a state known for its business-friendly regulations.
  • They often apply for patents early in their corporate lives.
  • The analysis seems rudimentary and unrevealing: there are many failed businesses that share these characteristics. Given the rapid advance of artificial intelligence, however, venture capital analysts shouldn't get too comfortable.

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