Every day, almost every moment, we make decisions. Decision making is extremely important in our life. From the moment you make a decision, we will contribute the majority of our capital, time, focus and energy in the direction you have selected. We believe that a better decision can improve lives. Different decision outcomes sometimes arise from a different set of knowledge or preferences that people have. Before carrying out this project, we reached a consensus that knowledge is power. And data mining can provide us with better knowledge to make better decisions. This project study will introduce the details of our work, including data preprocessing, exploratory data analysis, building predictive models, and analyzing results. The report is designed to have 4 sections. Section 1 will be a brief introduction to the project. Section 2 deals with data description and preprocessing. The data mining methodologies we used are detailed in Section 3. Section 4 shows the results of this data mining project. Problem Description and Objective Venture capital is financial capital provided to some young, high-potential, high-risk companies. The venture capital fund makes money by owning shares of the companies it invests in, which usually have a new technology or business model in high-tech sectors, such as biotechnology, IT and software. Furthermore, venture capital is attractive to new businesses with limited operating history that are too small to raise capital in the public markets and unlikely to qualify for a bank loan. Typical venture capital investment occurs when venture capitalists show strong interests in target startups and expect high returns when they exit, which usually occurs with an IPO or acquisition of the company. The initial idea we have seems irrational at first. Suppose you are the investment manager of a venture capital fund. We have 10 million in hand. Generally, if we do nothing with this money, our money will continue to get watered down due to inflation. Indeed, the existence of a huge amount of historical data demonstrates that data mining can provide a competitive advantage over human inspection of this data. Although the economic theory called the Efficient Market Hypothesis suggests that markets adapt so quickly in terms of price adjustments that there is no room to consistently make profits. However, this theory does not always align with the reality of the financial market, which leaves investors some room for speculation. The overall goal of venture capital is to maintain a portfolio of stocks of a few early-stage, high-potential companies..
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