Can an algorithm predict whether a startup will successfully exit? PitchBook believes so.
The venture capital and private equity database today launched VC Exit Predictor, a tool trained on PitchBook data to attempt to suss out a startup’s growth prospects. Given the name of a VC-backed company, VC Exit Predictor generates a score on the probability that it’ll be acquired, go public, or not exit due to becoming self-sustaining or experiencing any event (e.g., bankruptcy) that prevents an exit.
“The VC Exit Predictor was developed using a proprietary machine learning algorithm developed by PitchBook’s quantitative research team, trained exclusively on data available within the PitchBook platform including deal activity, active investors and company details,” McKinley McGinn, product manager of market intelligence at PitchBook, told TechCrunch in an email interview. “To ensure accuracy, predictions are made for venture-backed companies that have received at least two ...
