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YouNoodle: Better Startup Valuation Through Algorithms?
On Tuesday, Michael Arrington from http://www.TechCrunch.com had a fascinating post about his experience playing around with a startup called http://www.YouNoodle.com , which tries to do for start-up funding what credit scoring did for personal lending.
Before the 1950s, lending depended on the wisdom and judgment of loan officers. Then, a company called Fair Isaac developed a way to use four simple variables to develop a credit score that reliably predicted the risk of lending to an individual. Using the approach could allow any individual to meet, if not exceed, the accuracy of a loan officer, whose judgment might be clouded by extraneous factors.
Posted by Scott Anthony
Full Story: http://discussionleader.hbsp.com/anthony/2008/08/younoodle_innovation_through_a.html
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