To invest in a startup or not - a computer program will take all the responsibility to make a decision

Startups are now a great many, both potentially profitable and unprofitable, both realistic and fantastically far from reality. Nevertheless, it is difficult even for an experienced businessman to understand whether it is worth giving money to another company that offers a seemingly smart idea. The company Telefónica, one of the largest Spanish telecom operators, quite often invests in startups, writes TheVerge. Now this company has decided to put into its service a special algorithm, which, after analyzing a new company from all sides, gives a recommendation on investment.

The company decided to test the algorithm in, using the example of its investment platform Open Future . Applicants who participate in the selection program will evaluate the algorithm that will decide whether to give funds to a startup or not. Only the algorithm will decide; people will not interfere in the decision-making process.


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True, the algorithm will be tested only next year. For this, company representatives will travel around the world, getting to know new startups. Among the cities that experts from Telefónica plan to visit are Valencia, Bogota, Buenos Aires. People will listen to the presentations, and the program will choose. It is this algorithm developed by Telefónica that will bear the brunt of the choice.

The main goal is to remove a person from the decision-making system, with its subjectivity and intuition, which is often false. It is worth noting that analytical software is widely used by brokers on the exchange. Perhaps this experience should be transferred to other areas, including investing.