AI has been growing in prominence since the release of OpenAI's ChatGPT in late 2022. The human-like chatbot lets anyone ask it almost anything and produces an answer based on its millions of gigabytes of stored data and the interactions it has with others every day. Since then, startups and trillion-dollar titans alike have been finding new and innovative ways to implement the technology. Notably, many investors have built trading algorithms based on ChatGPT that choose stocks based on news, analysis, and sentiment. Even more notably, in one study by Finder, ChatGPT outperformed top funds on 129 of 134 trading trades.
While this doesn't mean investors should throw their money at whatever ChatGPT tells you to, it can provide an objective basis on which to make a decision. For example, the data analytics platform Hubtas uses objective rating criteria and AI-trained models to generate comprehensive advanced financials and quantitative breakdowns of equity crowdfunding startups and a host of other information. Using this information, the platform generates a company score based on valuation, financials, risks, and an overall total score.
Fortunately, many of these features are completely free just for signing up and making a hubtas account. For those looking to sign up, click here.
Using their sorting and screener features, investors can use this to see which startups, objectively, are the 'best' in the industry based on certain metrics. In total, the platform scores four metrics which are broken down further into objective pass-fail criteria. Those four categories include
Within each of these include pass-fail metrics like VC Backing, brand reach, IP, CEO Salary, Revenue growth, cash per employee, previous bankruptcies and more.
Many of these make sense as to why they might be a positive sign for an investor. If a company is VC-backed, that firm already conducted substantial due diligence before investing at least decreasing the likelihood of fraud. Brand reach can be useful because they already have a prebuilt customer base that they can monetize. Intellectual property, like patents, shows investments into technology, and protecting that technology.
The top-rated startup, according to Hubtas's objective criteria, is Truleo on StartEngine. The company comes in with a score of 3.38 out of 5. This breaks down to:
Valuation Score: 4.17/5
Financials Score: 3.13/5
Team Score: 2.22/5
Risk Score: 4/5
The scores tend to indicate a company is "well-rounded" in nature. For example, the company with the highest revenue growth in all of equity crowdfunding, TA Fintech, comes in at #12 out of 265. But Truleo is sitting at 'only' about 723% YoY growth.