What if Artificial intelligence could predict if your startup would get funded by a seed, angel or venture investor?
In fact we could tell you with 80% confidence if your startup would get funding. The fact is that even though investors claim that investing in startups is a very complex process with multiple criteria, looking at the data from the last 10 years of over 500K funding events, the world over, you can easily detect patterns.
The 5 most important criteria to determine if you will get funded are:
- Size of your potential market: Larger the market, more likely you will get funded, regardles of if it is an existing market or new
- Early success, traction and growth: If you have customer or user engagement, and more of it, the better are your changes to get funded
- Background of the founders: Even though investors say otherwise, 45% of founders come from 25 colleges or from the top 20 companies in each country or location)
- Location: The top 100 locations in the world account for 94% of all technology startup investments
- Valuation: The earlier the stage, the easier it is to get funded since the number of investors willing to write smaller checks is larger than those willing to write larger checks at later stages
The zuput system now has over 1 Million startups of which about 200K are funded by VC’s, seed investors and accelerators. Using Amazon Machine Learning, we can predict the chances of your company getting funded based on 3 parameters – your URL (Assuming you have a website), the LinkedIn profile of you and the founders and early traction data.
In fact, we can not only give you a sense of the % of chances you will get funded, but also give you a list of 5-10 top investors who are likely to be most relevant. This would remove those investors who might have funded competing ventures.
Predicting success is much harder. We define success as an exit, (IPO, acquisition or a sale) at a higher price than the one paid for in the previous round of finance.