CrowdSmart Is Using AI and Crowdsourced Intelligence To Help Seed Investors Improve Results.
According to Crunchbase over $2 billion dollars was invested in early stage startups in Q4 2017 alone. This figure represented early stage, seed stage, angel investment, angel network and equity crowdfunding platforms. That’s a lot of money spent on the highest risk startups, but it’s necessary money needed to spur innovation across the country.
Over $2 billion dollars was spent on companies where their business model hasn’t been proven, their product has zero to very little sales and in most cases, the members of the team have very little quantifiable experience. There’s no profit and loss reports and projections are based on unproven hypothesis and conjecture. When investing in early stage startups there is rarely any data available, period.
With no data available to investors they must rely on gut, how much they like the founder and how much they trust whatever it is that the founding team has told them. Early stage investors know that they’re throwing a lot of money away in hopes that one of their investments is the next Facebook or Google.
CrowdSmart is a first of it’s kind platform designed to help early stage investors make smarter decisions and better returns. Their AI powered venture platform helps seed investors improve investment results by up to 5x.
CrowdSmart has developed an intelligent data collection platform that leverages the power and accuracy of collective intelligence. That’s predicated on the idea that groups of well informed individuals with diverse expertise consistently outperform any single expert.
The platform also relies on an approach called Bayesian learning. In that approach, you take the information that you have and come up with an estimate or probability of success. Now say you take 10 more smart people and their experiences. Then you listen to what they say and re-evaluate your data points and re-estimate your probability of success. This Bayesian learning is a disciplined and rigorous method of modifying beliefs or knowledge based on new data.
With CrowdSmart the platform uses artificial intelligence to take all of this data from the group of participants and essentially make educated guesses on how well investing in early stage startups will be.
CrowdSmart does this with a group of Evaluators. All of these Evaluators are accredited investors, most with experience in early stage investing. This group evaluates each deal using specific points that most angel investment groups use when looking at a deals potential:
- Is there a significant market for the product or service?
- Does the company have a sustainable competitive edge?
- Is this the right team to lead the company to success?
- Are early investors likely to give the company the assistance and capital they need?
These, along with other data points, are put into the CrowdSmart system and a decision is made. CrowdSmart is a better way for investors to mitigate risk based on the collective expertise and experience of other investors.
Check out the future of early stage investing at The Collision Conference in New Orleans, April 30-May 3rd and find out more online at crowdsmart.io
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