Venture capitalists love technology. They also crave business models that make traditional industries more efficient.
So why wouldn’t VCs get excited about a new technology to help their own industry, allowing them to more accurately pick the winners in the highly competitive startup world?
That’s the idea behind YouNoodle, a Silicon Valley startup whose “Startup Predictor” attempts to determine the success of companies based on mathematical models.
We’ve certainly seen our share of predictive technologies in the Seattle area, from real estate (Zillow) to traffic (Inrix) to airfares (Farecast).
But can technology really help solve the riddle of startup investing?
Essentially, YouNoodle is trying to answer the age old question of whether venture capital is more art or science. Some big backers have lined up behind the company, including PayPal co-founders Peter Thiel and Max Levchin.
But the idea is certain to stir controversy. What do you think? Is venture capital more art, science or just dumb luck?
More from The New York Times, which humorously asks if the YouNoodle founders have run their own business model through the algorithm to gauge the likelihood of success.