To invest in a startup or not - a computer program will take full responsibility for making decisions

    Startups now are a great many, both potentially profitable and unprofitable, both realistic and fantastically far from reality. However, even an experienced businessman can find it difficult to give money to another company that offers a gorgeous, at first glance, idea. Telefónica, one of the largest Spanish telecom operators, quite often invests in startups, writes TheVerge. Now this company has decided to put at its service a special algorithm, which, having analyzed the new company from all sides, gives a recommendation on investing.

    The company decided to test the algorithm in practice, using the example of its investment platform Open Future. The applicants who participate in the selection program will be evaluated by an algorithm that will make a decision whether to give funds to a startup or not. Only an algorithm will make a decision, people will not interfere in the decision-making process.

    True, it will only be possible to test the algorithm next year. To do this, company representatives will travel around the world, getting acquainted with new startups. Among the cities that experts from Telefónica plan to visit are Valencia, Bogotá, Buenos Aires. People will listen to 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 his 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.

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