An area where crowdfunding sites have great potential is in the leveraging of data from a wide range of startups to forecast what sort of companies will succeed and which will fail.
“A crowdfunding platform can serve as a prediction market,” Lawton says. “A successful platform will aggregate an enormous amount of data. It can then analyze that big data to predict to a higher degree which startups will be successful. You have all these deals on a platform and layered on top of that you have this black-box algorithm that you can leverage to jack up the success ratio on startup investing like we’ve never seen before.”
Read more here
