There is a new company whose mission in life is to help the investment community determine if the startup they are thinking of investing in will be worth anything in the future. By using proprietary methods including analysis of the business and personal networks of the founders that can determine what a company will be worth in five years.
Many are laughing at the concept and think it is just impossible to pull this feat off but if it can work, would it not be just as useful for entities looking to purchase from such a company? For example if a startup comes out with some incredible new software that speeds up you company’s operations you would seriously consider the software… Right?
But what if this new success predictor, YouNoodle.com says the company you want to purchase from won’t be worth much in five years? What do you do then?
I am highly skeptical that YouNoodle can do much to help investors but if I am wrong, the company may indeed make more money from startups who can use YouNoodle’s software to determine their future value and subsequently market this fact to potential customers.
I am sure Wall Street will be watching this company very closely.