SRKay Consulting develops AI-based algorithm to predict success of startups
Extending its expertise in the world of startups, tech investment and advisory firm SRKay Consulting Group has developed an AI algorithm by the name of MindMatch, which reportedly calculates the chances of success for any given startup using an input of “human-only attributes.”
Alongside its general business advisory services for larger clients, Mumbai-based consulting firm SRKay Consulting specialises in the investment in, and incubation of startups in India’s budding startup environment. The firm works with new firms to help strategically develop their internal ecosystem so as to catalyse growth to the fullest.
Some of the categorised services offered by the firm include business-IT alignment and enterprise-wide operational efficiencies and the formulation new software product development strategies. Innovation lies at the heart of the firm’s operations, whether in their own functioning or when choosing a startup to invest in.
The latest of its innovative products has the potential to help multiple stakeholders in the startup sector. A number of international firms have recently begun investing in Indian startups. Capgemini announced plans to do so in 2016, while Accenture and Microsoft partnered to support tech startups just earlier this year. Dream Incubator, a Japanese consulting firm, also recently established a 5 billion Yen tech startup fund in the country.
SRKay’s new algorithm called MindMatch can reportedly predict the outcome of a startup endeavour, i.e. whether it will thrive or fail within the first five years. MindMatch leverages AI-based technology for its calculations, and the biggest determinant for success in the algorithm are “human-only factors,” which entirely differentiates it from other analytical tools that focus on organisational metrics.
“Around 78 per cent of startups are successful due to human only factors while the failures are primarily because of ignoring these factors,” explains Alok Kumar, Managing Partner at SRKay. The development of the new product is consistent with the atmosphere of growth within the firm since the appointment of a new Head of Consulting earlier this year, which was closely followed with the establishment of a North American office in Chicago.
The algorithm is born out of a scenario in India where 90% of the startups fail within the first five years of establishment, for reasons ranging from sparse investment to poor operational strategies. As per the firm, the latest in AI can also be applied to ensuring the success of startups by solving crucial challenges.
“It is essential for developing countries to invest in technology and practices that help them identify and nurture the right entrepreneurial talent and enable them by creating an ecosystem. The platform also enables enterprises to leverage this technology to create successful teams and ensure successful employee engagement at the workplace,” added Kumar.
