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Sounds like they're saying they're going to programmatically invest in companies based on metrics alone. Which is probably a bad idea, because there's almost a
by jtmarmon 9y ago
Sounds like they're saying they're going to programmatically invest in companies based on metrics alone.
Which is probably a bad idea, because there's almost always more to the picture than a few statistics can convey. And the relevant statistics vary by what the business does.
- fataliss 9y agoBut it allows them to do it at scale, which may or may not reveal itself a good bet. The good thing about their approach is that their scale is only limited by the amount of capital they have to invest. Say out of a 1000 investment based on their metrics, they average a 5% return. Then their model allows them to scale to make it potentially very profitable. Now of course that's assuming that with a larger scale they'd come out positive at all. If not, they'll soon waste all their capital and this will be the end of it :P
- cdoxsey 9y agoIt also allows a clever "entrepreneur" to game the system. In 6 months you'll be reading about it here on Hacker News: "How we lost millions due to an algorithmic oversight"