On Predictive markets:
“The bottom line is that the game has changed … and there is a lot of digital exhaust out there,” said Chris Farmer, a partner at General Catalyst, which is considered one of the more progressive of the older VC firms.
Before it pours thousands of dollars into researching a potential investment (work typically performed by a well-paid associate), a small cadre of venture firms are using analytics tools to pull in megabytes of relevant data, whether it’s a game’s performance in the various mobile app stores or conversations about a new e-commerce site on Facebook and Twitter.
Relying on instinct simply isn’t good enough anymore.
If algorithms can predict the results of elections, why not the success or failure of a tech startup? Read more at VentureBeat
