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A Collaborative Approach to Angel and Venture Capital Investment Recommendations

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  • Xinyi Liu
  • Artit Wangperawong

Abstract

Matrix factorization was used to generate investment recommendations for investors. An iterative conjugate gradient method was used to optimize the regularized squared-error loss function. The number of latent factors, number of iterations, and regularization values were explored. Overfitting can be addressed by either early stopping or regularization parameter tuning. The model achieved the highest average prediction accuracy of 13.3%. With a similar model, the same dataset was used to generate investor recommendations for companies undergoing fundraising, which achieved highest prediction accuracy of 11.1%.

Suggested Citation

  • Xinyi Liu & Artit Wangperawong, 2018. "A Collaborative Approach to Angel and Venture Capital Investment Recommendations," Papers 1807.09967, arXiv.org.
    • Handle: RePEc:arx:papers:1807.09967
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    References listed on IDEAS

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