Where Venture Capital fails, Angel Investors are forced to pick up the slack

And the great entrepreneurial litmus test returns. (written by AI)

Priansh Shah
· 4 min read

This is purely an AI-generated article, as in, it has no input from a human. We apologize for any controversial opinions; this piece is meant to highlight the ability of modern natural language generation as well as the ethical ramifications it could have with pressing issues such as Fake News.

Ever since the first episode of Shark Tank, we’ve wondered where the most coveted returns really come from. How do most funds invested in VC fail, and more importantly, how do millions of other venture-backed deals work in reality?

That’s the subject of one of the quickest-growing platforms to date — VC Fund Rate — which tallies up which funds have lost the most money, which is one of the most valuable stats for making good investment choices.

Photo by David Clode on Unsplash

Whereas, you may remember on this very show, an investor wished for the past performance of their wannabe startup after failing at picking the winning company. It was well justified, but the question remains, how do they go about picking winners if they did not see that past performance?

Well, we can look to our Spotify review of UK VC, Upstart VC — the two have a lot in common. We’ve been reviewing dozens of funds on our site, all online, but few rate as highly as the market leader on CNBC, Midas Letter.

The fund looks at data, some sourced from two web crawlers, to compare all VC investments in UK through the first two years (January 2017 to December 2018) from the UK government’s UK Venture Capital Association (UKVCA) database. This data includes some 63,376 deals with 64 IPOs in total, including the largest one of the decade, Acacia (tonight). It covers over 1.2 million square feet of floor space — at a median (£27.0 million) price-per-storey. It’s new data series, just released — we have been using it on our site since last September to verify new database deals.

The most confirmed, confirmed, verified (RC) deals: 18,604

Photo by Thomas Drouault on Unsplash

Junior League Trust, CFP, JPM Technology, International and JPM Funds take some of the RC positions. However, in many cases, this constitutes a first non-company investment. In fact, many more VC funds claim to have made their first RC deal in the past year. However, many don’t qualify. If the answer is no, as VC rate suggests, then we must disqualify VC it’s the first RC investment (in other words, VC is the first company).

We are very confident about the VC rate, as it’s based on global IPO market conditions and PE capital markets data. In addition, VC rate doesn’t capture whether or not a VC has bought in to a non-public company. This is valuable to determine whether a VC fund has a history or isn’t fully invested in other companies.

And finally, for ratings. Currently, there is no parity in VC stock levels. VC investors who have outbid other VC investors in IVP-related blocks have achieved the highest ratings. For example, in an IVP-related block, the date VCs make their first RC investment is coded to represent their VC shareholding, and on a buy-out date is coded to represent their equity ownership in the company at that time.

They’re called Index funds because their theory is that if you own five percent of each index, you can create a trillion-dollar market cap. If this is proved correct, we shall have a mainstream, cross-asset index to track global returns. For now, VC Rate’s rankings are but one form of that data.


Hi there! We’re Aiko AI (helloaiko.com), and we started this publication to highlight the ethical ramifications of AI used to further fake news. This article is generated by an AI and probably doesn’t contain any real views or information.

This particular piece is made using AllenAI’s brilliant GROVER model, which is a generative network that’s helping detect fake news articles like this one.

We filter blogs by checking if our AI-powered summarizer matches the results of the LDA summary; essentially, checking whether the article maintains coherence. We extract topics using nlp-compromise and use those to add in Unsplash Photos.

This Blog is Written by an A.I.

A collection of AI generated articles that illustrate both recent advances in AI and their ethical impact on society and fake news.

Priansh Shah

Written by

Living at the intersection of tech, design, and writing. Looking for baby seals 🐋

This Blog is Written by an A.I.

A collection of AI generated articles that illustrate both recent advances in AI and their ethical impact on society and fake news.

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