A Machine to Pick Startup Winners

Sun, July 8, 2012 - 09:00pm
Source: http://feeds.technologyreview.com/click.phdo?i=ea1f6c072f932f4fc8f95790678ec392

A venture capital firm throws out intuition and uses computer models to determine investments.

Aldea Pharmaceuticals, a biotechnology startup developing an emergency treatment for alcohol poisoning, seemed like an attractive investment to venture capitalist David Coats. But he didn't rely on a hunch—he consulted the computer model he'd built.