VC firm uses data analytics to pick entrepreneurs

Statistics and big data took over baseball scouting some years ago, with the rise of Moneyball. More recently, those tactics have spread to the political world, with presidential candidates using big data to maximize their vote, and Nate Silver using algorithms to correctly predict outcomes in all 50 states.

Now we’re doing it, too. Instead of relying on the gut instincts, punditry and armchair quarterbacking that VCs are notorious for, our firm is pattern replicating to decide which entrepreneurs to fund.

Here are the components of a secret algorithm I developed that we use to score and rate potential investments with entrepreneurs.

By Remmy Oxley, VC

Full Story: http://gigaom.com/2012/12/23/the-secret-algorithm-one-vc-firm-uses-to-vet-entrepreneurs/