StartupFuel, a Canada-based AI due diligence firm, has launched DiligenceGPT, a software designed to assist enterprise capital companies tackle AI misinformation and bias in due diligence for African startups.
The AI-powered software helps VC companies to sift by and analyse massive datasets supplied by founders and evaluate them in opposition to business requirements and public knowledge. DiligenceGPT will present buyers with threat scores, relevancy match, and knowledge integrity scores to information their funding selections.
“There isn’t any doubt that there’s a rise in expertise, so [DiligenceGPT] goals to empower native entrepreneurs in Africa, serving to them increase their attain, appeal to funding, and finally contribute to sustainable financial growth within the continent,” the corporate mentioned.
StartupFuel has collaborated with World Financial institution’s Worldwide Finance Company (IFC) with a deal with rising markets, by championing a good and unbiased analysis ecosystem. This strategy seeks to unlock vital progress alternatives and allow African founders to entry funding and sources.
Self-described because the “LinkedIn and Bloomberg for VC,” StartupFuel supplies due diligence insights on startups on its listing record and presents them as an “SAT” rating to buyers. This rating is benchmarked in opposition to their enterprise mannequin and market, traction, limitations, opponents, and financials to assist founders choose their winners.
“DiligenceGPT is our dedication to lowering bias, offering larger transparency, and utilising AI to reinforce the present course of,” mentioned Ashley Martis, StartupFuel CEO.
AI misinformation contributes to funding biases. Massive language fashions (LLMs) make it simpler to control knowledge about market sizes and serviceable markets in numerous industries, as an example. Inaccurate or incomplete data supplied to those buyers can slip by unnoticed, creating challenges for them and generally, skewing funding selections.
“The business is ranked with subjective biases, and a rising have to validate massive quantities of personal knowledge that may be incorrect, exaggerated, and/or molded to inform a false narrative,” the corporate mentioned in a press release.
Based by Ashley Martis in 2019, StartupFuel gives AI-driven options for enterprise capital. In 2020, the corporate raised an undisclosed quantity of funding, in response to Crunchbase.
StartupFuel has additionally expanded by strategic acquisitions. In 2019, it acquired Startifi, a social community for startups, and in 2021, acquired Uncrowd.io, a platform supporting underrepresented founders. It counts Techstars and Village Capital as purchasers.
The AI startup faces stiff competitors from extra established gamers in enterprise capital due diligence, reminiscent of Crunchbase and Tracxn, which provide comparable deal movement evaluation instruments for buyers.
But, StartupFuel is betting on its know-how. The AI startup has trademarked its DiligenceGPT software and filed a patent awaiting approval, to construct a moat on the know-how facet of its operations.
Editor’s notice: This text has been replace to right StartupFuel’s founding yr, buyers and included a further paragraph.