Quantifying Startup Risk

Quantifying Startup Risk

Quantifying Startup Risk

The current state of the startup ecosystem, marked by financial pressures and heightened caution among investors, presents a pivotal moment for reassessment and strategic adaptation. The failure of Silicon Valley Bank, rising inflation, increasing interest rates, and public setbacks of high-profile companies have instigated a wave of conservatism in the angel and early stage venture capital communities. This cautious approach is reflected in more conservative valuations, smaller funding rounds, and a heightened scrutiny on startup expenses and viability.

Using AI Tools with ChatGPT to Enhance Startup Funding Decisions:

In this climate of uncertainty and restraint, investors are compelled to reexamine their portfolio thesis and raise the bar for new investments. The need for a more rigorous deal flow management to support investment decision-making is more crucial than ever. This is where the strategy employed by groups like Queen City Angels (QCA) become particularly relevant. By integrating AI tools and platforms like ChatGPT into their evaluation process, QCA is starting to deploy a more analytical, objective approach to startup funding.

Taking a Quantitative Approach will Reduce Risk and facilitate Informed Decisions:

As investors navigate this redefined landscape, there’s a growing emphasis on sustainable business models, prudent financial management, and clear paths to profitability. The role of AI in this shift is not just about enhancing efficiency but also about fostering a more resilient and adaptable investment culture.

The Queen City Angels – It’s Early in the Process, and We Expect to Add More Value to the Startup Ecosystem:

My guest is Scott Jacobs, Executive Director at the Queen City Angels. In this podcast, we review how their online deal flow management application suddenly went dark as the supplier ceased operations.  This breakdown provided the motivation for Scott to research a new class of AI tools for evaluation and due diligence of potential investments.