(This article is inspired from the works of Charles D Ellis & Victor Niederhoffer)

The moot point he wanted to drive was that professional tennis is about hitting winners and amateur tennis is about avoiding losers. Equating it to investing, while the full-time investment professionals hunt and plan for that winning investment idea, the average investor should strive to avoid mistakes which cause losses.

Secondly, a lesser known investing legend (more famous for his gut-wrenching losses!), Victor Niederhoffer had also written about the different lessons learnt on the tennis court and how they should be applied to investing.

Thus, given below are few ideas and corollaries to not only improve your game of tennis but also investing results!

Before the Game:

In Investing:

Playing the loser's game by: 1. Investing without a goal in mind

In Investing:

Playing the loser's game by:

Towards the Endgame:

In Investing:

Playing the loser's game by:

The encouraging truth is that while most investors are doomed to lose if they play the losers game of trying to beat the market; every investor can be a long-term winner. All we need to do to be long-term winners is to reorient ourselves to concentrate on realistic long-term goal setting and staying the course with sensible investment policies that will achieve our own particular objectives by applying the self-discipline, patience, and fortitude required for persistent implementation.

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully

Disclaimer: Content Produced by IDFC AMC

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Winning Investments are made by having a Game Plan - Times of India

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Investment giantBlackstone Group has sold its remaining stake in Invitation Homes, a company established by Blackstone in the wake of the housing crash in the early 2010s to invest in foreclosed single-family housing on a large scale.

Blackstone has been selling off its interest in Invitation Homes since earlier this year, with the latest sale (in the form of a stock offering) representing about 11% of Invitation Homes stock, bringing Blackstone $1.7B. All together, the stock sales, plus dividend earnings in recent years, have made Blackstone about $7B, or more than twice what it invested, the Wall Street Journal reports.

Investors have proven willing to buy the stock that Blackstone has been selling. At the beginning of 2019, Dallas-based Invitation Homes traded for $20.80/share. As of mid-November, that price had risen to $29.50/share, down a little from the year's peak over $31/share in mid-October.

Blackstone bet successfully that Invitation Homes, which is structured as a real estate investment trust, would be able to efficiently manage a massive portfolio of single-family houses in various parts of the country, though concentrated in Florida and the western states. Currently, the company owns about 80,000 houses.

The hardest part wasnt buying the homes, it was building the business, Blackstone President Jonathan Gray, who headed the firms real estate business when it launched Invitation, told the WSJ.

Invitation Homes grew organically during the 2010s by buying houses, but it vaulted to the status of largest single-family owner in the country in 2017 whenit acquired Starwood Waypoint Homes, which owned about 32,000 houses at the time. Starwood itself was the result of earlier consolidation in the sector. Invitation Homes' nearest rival, American Homes 4 Rent, has a portfolio just shy of 53,000 houses.

The company is still buying houses, though it is selling them as well. During the third quarter of 2019, Invitation Homes acquired 578 houses for $183M, while during the same quarter, the company sold 668 houses for $168M.

Invitation Homes President and CEO Dallas Tanner said during the company's most recent earnings call in late October thatInvitation Homes is benefiting from strong fundamentals in its main markets, with household formation in the western U.S. and Florida pacing at over twice the national average.

"We continue to see an attractive opportunity in these markets to buy well below replacement cost and generate attractive returns relative to our cost of capital," Tanner said.

Considering that many of the new households are being formed by millennials, who are weighed down by student loan debt and other factors,rental single-family housing can serve the current generation's needs the way a for-sale starter home might have for their parents.

Tanner said demographics are favoring growth for Invitation Homes.

"Over 65 million people or roughly one-fifth of the U.S. population is aged 20 to 34 years," he said. "We believe many in this cohort will choose the single-family leasing lifestyle as they form families and age towards Invitation Homes average resident age of 39 years."

As an institutional landlord, Invitation Homes has also attracted its share of criticism. Last year,Reuters reported tenant dissatisfaction with property management andfees.

"In interviews with the companys tenants in neighborhoods across the United States, the picture that emerges isnt as much one of exceptional service as it is one of leaky pipes, vermin, toxic mold, nonfunctioning appliances and months-long waits for repairs," Reuters reported.

Invitation Homes disputed that characterization. From time to time, things happen, Chief Operating Officer Charles Young told Reuters. But when theres an issue, we work hard to resolve it as quickly as we can.

Original post:
4 Blackstone Profits Handsomely From Single-Family Investment Vehicle Invitation Homes National Other National Other November - Bisnow

Investment Week is delighted to reveal the winners of its third annual Women in Investment Awards, which took place in London last night (27 November) in partnership with HSBC Global Asset Management.

Having been a success for the past two years, the event returned for its third to celebrate the achievements of women in the fund management industry.

The awards, for whichInvestment Weekreceived over 1,000 submissions, aim to recognise the achievements of women in a sector where they are currently under-represented, particularly at senior level.

They also honour companies and individuals who have helped support women in the workplace and have tried to improve diversity within their businesses.

The judges faced some difficult decisions after reading many touching and inspirational stories but were pleased to see submissions from women from a wide variety of roles within the industry.

This year's ceremony took place on Wednesday 27 November at Finsbury Square in London.

Winner: Gemma Godfrey, Moola

Winner: Investment20/20

Highly commended: Barings

Winner: Morgan Stanley Investment Management

Winner: Clo Fitzsimons, Cazenove Capital

Highly commended: Shiwen Gao, Investec Wealth & Investment

Winner: Shannon Lancaster, Ravenscroft

Winner: Fiona Macnab, Goldman Sachs Asset Management

Winner: Bethany Morris, Robeco

Highly commended: Clelia Fabbricatore, Schroders

Winner: Colette Corveste, Legg Mason Global Asset Management

Winner: Lee Georgs, Redington

Highly commended: Louise Walewska, HSBC Global Asset Management

Winner: Honor Solomon,Legal & General Investment Management

Highly commended: Bilquis Ahmed, J.P. Morgan Asset Management

Winner: Natasa Williams, LGT Vestra

Winner: Meike Bliebenicht,HSBC Global Asset Management

Highly commended: Olivia Maguire, J.P. Morgan Asset Management

Winner: Saachi Sharma, Man Group

Winner: Claire Jewiss, J.P. Morgan Asset Management

Winner: Farah Foustok,Lazard Asset Management

Highly commended: Virginie Maisonneuve, formerly Eastspring Investments

Winner: Rosanna Burcheri,Artemis Investment Managers

Highly commended: Fabiana Fedeli, Robeco

Winner: Olivia Maguire, J.P. Morgan Asset Management

Winner: Klyzza Jayme Lidman,Aubrey Capital Management

Winner: Kirsty Gibson,Baillie Gifford

Highly commended: Julia Rees, Goldman Sachs Asset Management and Kemi Dominic,Morgan Stanley Investment Management

Winner: Caroline Escott, Pensions and Lifetime Savings Association

Winner: Kathleen Hughes,Goldman Sachs Asset Management

Highly commended: Helen Xiong,Baillie Gifford

Anne Richards, Fidelity International (pictured, below)

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Revealed: Winners of the Women in Investment Awards 2019 - Investment Week

It has been over a year since David Tepper signed on the dotted line, purchasing the Carolina Panthers, for an NFL record $2.275B. Hes spent much of the past 15 months making up for lost time, doing many of things Jerry Richardson was too austere to do.

So far, hes made investments in player health, marketing, and has made big strides to bring the team facilities into the 21st Century. So now, when it rains, players no longer have to run routes and defend passes on the carpeted hallways of the Convention Centerthey have a weatherproof field to practice on inside a brand new bubble.

Earlier this summer, he made his biggest move to date, announcing that the Panthers would be moving their training facility and team HQ to Rock Hill, SC. While the Bubble brings the team into the 21st century, what Tepper has planned in Rock Hill prepares both he, and the team for the future.

In Late October, Rock HIll Planning Commission held a hearing to discuss the Panthers rezoning plan this meeting gave us our first glimpse into what we can expect the Panthers plan to look like. It also gives us a glimpse into one of the biggest ways Tepper will be diversifying his investment.

Ultimately the plan was approved by a vote of 5-2, to move on to City Council for a final vote.

The Panthers new facility will sit on what is currently 285 acres of heavily wooded land, located just south of the Catawba River, adjacent to I-77 at 2394 Eden Terrace in Rock HIll.

Beyond the headquarters and practice facility, which are expected to open August of 2022, the development will include many different uses. According to the memorandum, the team will aim to establish a commercial district, anchored by regional and corporate headquarters, shopping, nightlife, hotel rooms, and a dense residential district.

The proposed buildout, so far, includes the following:

Related: The Likely Market For Panthers Pending Free Agents

Here comes The Hot Tepper

Beyond these raw numbers, theres numerous other items discussed.

The team facility is designed to be utilized by the players, but in some cases will give access to the general public. There will be public viewing areas, and the team facility is expected to host high school football games.

Related: Seasons Can Be Fragile: Will A Drubbing In San Francisco Be This Year's Pittsburgh?

For me, the biggest takeaway from the memorandum is not the practice facility itself, but how Tepper intends to use the land to diversify his investment in the Panthers. The memorandum describes a plan that paints broad enough strokes that Tepper could really do whatever he wants with it within the laws of the city of Rock Hill, and the state of South Carolina.

Its clear that he wants to create a 365 day a year entertainment business, instead of one that is only relevant on gameday.

Contributor/Meme Maker in Chief

In the venn diagram that is Panthers, Business News, & Development, I cover the space where they intersect. Charlotte born & bred, NYC resident - for now, at least. Follow me on twitter at @CLTDevelopment

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Tepper Making His Biggest Investment Yet - The Riot Report

If you're like the majority of Americans, you're probably a little intimidated by the idea of investing. In fact, an Ally Financial study shows over 60% of Americans are scared of it, so you're not alone. This figure may be even higher for millenials. But that doesn't mean you should avoid investing. To the contrary, overcoming your fear of money and investing can be one of the single most powerful self-improvement hurdles to master. It can not only make your psychological outlook more positive, but it can also yield tangible financial results that will measurably improve your material well-being.

Here are three ways to start taking control of your investing future rather than avoiding it out of fear.

1. Make your 401(k) your best friend

For many of us, the first experience with investing is through employer-sponsored retirement plans, such as a 401(k). This can be a great place to start because employer plans often usetarget-date retirement funds, or other core index funds, as default plan selections, which are ideal choices for novice investors, or those who wish for a hands-off approach.

Employer plans also usually offer support from your HR department or the plan's service provider when it comes to understanding basic investing concepts like asset allocation and diversification to make sure you don't take too much risk. Take your time to understand the offerings, the costs, and your choices. Over time, your confidence will increase, and even if your contributions are initially small, they serve as training wheels for more independent investing in the future.

More from Invest in You: How to teach your kids about money and stress Oprah Winfrey on never taking her company public: 'I like to be my own boss' Billionaire Ray Dalio says retail investors should not make this big mistake

2. Learn a little about investing

If you're reading this article, it's because you've already taken the first and most critical step toward overcoming your fear of investing you're educating yourself, seeking out information to help empower you and make better financial choices. When it comes to self-education, we all have to start somewhere, and online videos, tutorials, guides, and discussion forums are a good way to master basic knowledge, and engage with others, like you, who want a better grip on their finances.

Many major financial services companies offer excellent (and free) financial education materials, such as Vanguard's Plain Talk on Investing,TD Ameritrade's Education portal, or Morningstar's Investing Classroom. Other great sources include the American Institute of CPAs' 360FinancialLiteracy.org, Investopedia, and many of the resources shared via Investor.gov.

3. Learn a lot more about investing by investing

Reading and educating yourself is just the first step: You'll need to take the plunge into actual investing, and that's where the most important learning happens. Your first forays into investing should ideally involve a relatively small amount of capital. You should also consider seeking the advice or support of a professional, or knowledgeable family member.

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CHECK OUT: How much to tip a doorman, babysitter, and others for the holidays, according to an etiquette expertvia Grow with Acorns+CNBC.

Disclosure: NBCUniversal and Comcast Ventures are investors in Acorns.

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How to overcome your fear of investing - CNBC

NFL linebacker Brandon Copeland understands the importance of investing his money.

In fact, the New York Jet spends about 10% of his salary and saves the rest.

"This career can end at any moment. Any money I make I'm trying to extrapolate that out for life, I'm trying to save as much as possible," he said.

To do that, Copeland is putting money into the stock market, real estate and private start-up ventures.

"Having those multiple income streams, I feel like it's amazing, you never are dependent on one single thing," he said.

He's also focused on the long term when it comes to the stock market.

"When I came into the league years ago, I was trading options and day-trading options," said Copeland, a member of the CNBC Invest in You Financial Wellness Council.

"It was because I didn't have a lot of money and I wanted to flip it quickly."

Brandon Copeland, NY Jets Linebacker.

Adam Jeffery | CNBC

Copeland soon came to realize that he couldn't spend all his time focusing on the market. Instead, he said he's now realistic about his risk tolerance and wants to be sure he's invested "comfortably" so that he doesn't have to worry when the market has a down day.

Copeland was fortunate to come into the NFL with a firm financial background. He graduated from the University of Pennsylvania's Wharton School in 2013 and held a couple of internships on Wall Street.

He's now using his own work experiences to help others.

For one, he started his foundation, Beyond the Basics, which gives back to the community by hosting a youth football camp and other events.

More from Invest in You: Inside the NY Giants money boot camp NFL Hall of Famer Terrell Davis reveals his biggest money mistake Tennis legend Andy Roddick: This is the 'most powerful thing you can be'

For the second year in a row, the organization is giving away a holiday shopping spree at Target this December to 100 underprivileged kids in New Jersey. He's partnered with other players from the New England Patriots, Carolina Panthers, Baltimore Ravens, Oakland Raiders, Tampa Bay Buccaneers and Dallas Cowboys to do the same in their hometowns.

Copeland is also teaching a class on financial literacy at his alma mater. Part of it focuses on how to invest in the stock market. Here's his advice to getting started on investing.

Copeland tells his students "before you even put a dollar into anything," download investing apps and turn on the notifications. This way, you can keep up with what's happening in the market like when the indexes hit new highs, as the S&P 500 and Nasdaq did on Monday.

Having those multiple income streams, I feel like it's amazing, you never are dependent on one single thing.

Brandon Copeland

New York Jets

That's especially important for Copeland, since he's focused on winning football games right now and can't pay close attention to the market.

"Because I'm getting the notifications, I still have somewhat of an idea of where things are," he said.

When it comes to picking stocks, stick with what you have an interest in.

If you like shoes, for example, you can look into Nike, Adidas or Under Armour, he said.

On the flip side, if you don't have any idea about health care, don't start trying to invest in a pharmaceutical company, he added.

While Copeland likes to be involved in certain names and take some risk, he is also starting to invest in some index funds. Those funds mirror a particular index, like the SPDR S&P 500 ETF Trust.

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Here's how NFL linebacker Brandon Copeland is investing his money - CNBC

Your companys retirement plan may soon shrink its investment menu. While few of us like the idea of having fewer choices in life, the move could actually turn out to benefit most investors.

For millions of Americans, their employers 401(k) is their main retirement savings vehicle. But experts have long complained that plans, which typically offer several dozen investment choices, can intimidate and ultimately turn off workers with their complexity and cost.

The good news is plans have been getting simpler and cheaper. Most plans now automatically enroll workers in funds that offer an age-appropriate mix of stocks and bonds. New evidence suggests that firms are streamlining their la carte investment menus, too.

Financial firms that help employers design 401(k) plans say they are choosing fewer investment managers to include in 401(k) fund rosters than in the past, according to results of annual study of 180 such advisers by Sway Research LLC.

The survey, first reported by trade publication Investment News, targeted consultants who typically work with mid-sized 401(k)s with $10 to $50 million in assets. Roughly half of these advisors agreed or strongly agreed they were working with fewer investment managers. Only 15% about of the advisors disagreed.

So why do investors benefit from fewer options?

Because, the trend is largely driven by 401(k) plans emphasizing passive index mutual funds rather than actively managed ones that aim to pick winning stocks, according to Sway Principal Christopher Brown.

Since index funds are designed to represent broad swaths of the market, like all U.S. stocks or all developed world foreign stocks, investors dont need as many options.

Whats more, the best index funds tend to be the cheapest ones, and those cheapest funds tend to be offered by a few very large investment firms, such as Vanguard, State Street and Dimensional Fund Advisers, who can rely on their giant scale to gain a pricing edge, according to Brown.

While savers might like the idea of a large menu of mutual funds in the abstract, when it comes down to it, most are better sticking with index funds and pocketing the extra cash that their low fees have bought us.

Read more from the original source:
Your 401(k) May Soon Have Fewer Investment Choices But That's a Good Thing - Yahoo Finance

The world's largest economy is the "prime market" for investment next year, according to the chairman of Switzerland's largest bank.

His comments come as market participants closely monitor global trade developments after President Donald Trump threatened to "substantially" increase tariffs if China failed to agree to a trade deal.

The U.S. and China have imposed tariffs on billions of dollars' worth of one another's goods since the start of 2018, battering financial markets and souring business and consumer sentiment.

"The U.S. generally when you look at the outlook for growth is more positive than it is for Europe," UBS Chairman Axel Weber told CNBC's Joumanna Bercetchein an exclusive interview at the UBS European Conference in London on Wednesday.

"Trade disputes between China and the U.S. have a much bigger impact on the outlook for China in the negative sense than they have for the United States. It is impacting the U.S. as well but in a less pronounced way."

"So, if you look at for areas of growth and investment, the U.S. is the prime market," Weber said.

Expectations of a so-called "phase one" trade deal between the two economic giants have been rising in recent weeks, supporting stocks and riskier assets.

However, a lack of progress on an agreement has intensified concerns about whether a trade deal will take place at all.

Speaking at the Economic Club of New York on Tuesday, Trump said both sides were "close" to reaching a "phase one" trade deal but did not offer any details on where or when it might be signed.

The U.S. president also repeated an accusation of China "cheating" on trade, though he blamed the situation on past leaders of the world's largest economy.

"The question many clients ask is: So, what about the dollar? Now that the Fed has come down with rates, will the dollar move in the opposite direction?" Weber said.

"Short-term, it might be that there is some slight change but, long term, I think I am very dollar positive. The dollar will continue to be the major currency in the world and will continue to be very strong."

The dollar index was marginally higher on Wednesday, trading at 98.366 against of basket of six major currencies, up almost 0.1% on the day.

The Fed has cut interest rates three times in 2019 in what it has been characterized as a "midcycle adjustment."

The CME FedWatch tool, which reflects trading in fed funds futures, shows market expectations for another rate cut next month are very low, at less than 4%.

Excerpt from:
US is the 'prime market' for investment in 2020, UBS Chairman Axel Weber says - CNBC

Today, blockchain is consistently brought up as the technology catalyzing the Fourth Industrial Revolution. Blockchain and other distributed ledger technologies are currently being developed and implemented by the biggest and smallest of enterprises, financial institutions, central banks and governments around the world.

Some of the most proven use cases include agricultural supply-chain management and food safety, tokenization of real estate assets, foreign exchange transactions, immutable voting, interbank settlements, securing patient data and land registry. And the list goes on.

"Then why haven't I noticed?" you may ask. Blockchain will have reached its tipping point of mainstream acceptance when people are using blockchain without knowing they're using blockchain, once the technical aspects of how it works have faded into the background, when it's simply part of daily life. That said, Big Business is already deeply engaged in leveraging this revolutionary tech, innovating and building the foundational aspects for the new world ahead.

If you're the type of person who might have been surfing the web on a Netscape browser, or you're "hodling" the dotcom bubble stocks you bought at $6 a share, you're the trailblazing type who will be on the cutting edge of this technological revolution as well.

As a blockchain advisor and investor, I find the most compelling personal use cases to be those in which blockchain can make life better, easier, safer, more efficient or all of the above. I am personally invested through my professional work in advancing enterprise blockchain applications in the marketplace and also hold a small portfolio of cryptoassets. Now that we're in the longest bull market in American history since WW2, more investors are becoming disenchanted with equity markets given recent volatility and are seeking out alternative investment options with low correlation to the stock market, to protect their portfolio against potential economic instability.

Enter the digitalization of value. Be it company equity, asset-backed securities, cryptocurrencies or security token offerings (STOs), the age of digital assets is now, and they are real-deal investments, with nearly $1 billon raised through STOs alone in the last 18 months with another $1 billion USD in digitized real estate assets in the pipeline.

Blockchain tech enables companies to generate digital securities called tokens that are remarkably adaptable from a financial-engineering point of view, embedded with data (including regulatory compliance) that used to require substantial human involvement. These alternative financial mechanisms (think coins, tokens, STOs) enable direct investment in commercial real estate assets without the requirement of typically siloed institutional investment opportunities, yet with all of the security of SEC/FINRA regulation. Think fractionalized ownership of high-yield, regulated investment opportunities without having to pay your broker/dealer for transacting the deal on your behalf. This is where the convergence of digitization and disintermediation brings about enormous value for us as individual investors.

I believe we will soon live in a world of decentralized finance where investment is open to all, where we can invest directly into whichever asset class we prefer through blockchain-based offerings, enabling a vastly more liquid, transparent and cost-efficient means of building wealth than we've ever seen.

As this technology continues to impact finance, I expect that the average individual investor will have immensely greater access to asset classes still reserved for the ultra-wealthy and connected. New, transparent, decentralized and proven blockchain investment use cases are very much the FAANG investments of tomorrow, so start doing your due diligence today.

From my perspective as a real estate developer, one of the most compelling blockchain use cases is just that real estate. On a large scale, blockchain is powering the tokenization of commercial real estate equity to offer investors fractionalized yet liquid ownership of unique, high-yield assets.

On a smaller scale, blockchain makes the buying and selling of homes much easier as well, enabling an immensely more efficient home-buying experience. If you've ever bought or sold a home, you know all about how lengthy and tedious the process can be. Blockchain-based real estate agreements are now being initiated and processed through digital real estate brokerages that essentially disintermediate the entire process, enabling home buyers and sellers to transact all parts of the deal peer-to-peer through a smart contract that controls the process securely from start to finish, saving major time and money.

Real estate assets are impeccably well suited for tokenization. I wholeheartedly stand by my previous prediction that "by 2025, the majority of global real estate investments will be issued as tokenized asset offerings (TAOs) and held as cryptoassets, specifically security tokens, just like traditional securities but traded peer-to-peer without financial intermediaries."

In order to get a jump on this digital transformation, I highly recommend taking a course or two on the subject in your spare time. For example, UC Berkeley offers an online primer course on blockchain technology through which you can learn of the latest advances in the space while earning a professional certificate that can help advance your career as well as your investing prowess.

Also, take advantage of your free time to strengthen your fluency in fintech, blockchain, cryptoassets, proptech or whatever space particularly interests you by absorbing the latest research and news. I like to follow sources such as Cointelegraph and seek out the latest reports on these topics by reputable global firms. Deloitte's "2019 Global Blockchain Survey"is a comprehensive source for learning all about today's most promising applications in the space.

There are many opportunities to get involved with other enthusiasts and professionals in this space through local Meetup gatherings focused on blockchain and crypto. A nonprofit foundation focused on a specific field, such as theFoundation for International Real Estate and Blockchain Expertise (FIBREE), of which I am a Regional Chair, can be another resource for knowledge and ideas.

The future of investing is here, so my advice is to learn everything you can and jump into the digital age of real estate investment now, and watch your knowledge, experience and wealth grow while the rest of the pack still pays most of their profits to the intermediaries.

See the article here:
The Future Of Real Estate Investing: Digital Assets Are Here, Now - Forbes

David BlumbergContributor

Funding of artificial intelligence-focused companies reached approximately $9.3 billion in the U.S. in 2018, an amount that will continue to rise as the transformative impact of AI is realized. That said, not every AI startup has what it takes to secure an investment and scale to success.

So, what do venture capitalists look for when considering an investment in an AI company?

What we look for in all startups

Some fundamentals are important in any of our investments, AI or otherwise. First, entrepreneurs need to articulate that they are solving a large and important problem. It may sound strange, but finding the right problem can be more difficult than finding the right solution. Entrepreneurs need to demonstrate that customers will be willing to switch from what theyre currently using and pay for the new solution.

The team must demonstrate their competence in the domain, their functional skills and above all, their persistence and commitment. The best ideas likely wont succeed if the team isnt able to execute. Setting and achieving realistic milestones is a good way to keep operators and investors aligned. Successful entrepreneurs need to show why their solution offers superior value to competitors in the market or, in the minority of cases where there is an unresolved need why theyre in the best position to solve it.

In addition, the team must clearly explain how their technology works, how it differs and is advantageous relative to existing competitors and must explain to investors how that competitive advantage can be sustained.

For AI entrepreneurs, there are additional factors that must be addressed. Why? It is fairly clear that were in the early stages of this burgeoning industry which stands to revolutionize sectors from healthcare to fintech, logistics to transportation and beyond. Standards have not been settled, there is a shortage of personnel, large companies are still struggling with deployment, and much of the talent is concentrated in a few large companies and academic institutions. In addition, there are regulatory challenges that are complex and growing due to the nature of the technologys evolutionary aspect.

Here are five things we like to see AI entrepreneurs demonstrate before making an investment:

Demonstrate mastery over their data and its value: AI needs big data to succeed. There are two models: companies can either help customers add value to their data or build a data business using AI. In either case, startups must demonstrate that the data is reliable, secure and compliant with all regulatory rules. They must also demonstrate that AI is adding value to their own data it must explain something, derive an explanation, identify important trends, optimize or otherwise deliver value.

With the sheer abundance of data available for companies to collect today, its imperative that startups have an agile infrastructure in place that allows them to store, access and analyze this data efficiently. A data-driven startup must become ever more responsive, proactive and consistent over time.

AI entrepreneurs should know that while machine learning can be applied to many problems, it may not always yield accurate predictions in every situation. Models may fail for a variety of reasons, one of which is inadequate, inconsistent or variable data. Successful mastery of the data demonstrates to customers that the data stream is robust, consistent and that the model can adapt if the data sources change.

Entrepreneurs can better address their customer needs if they can demonstrate a fast, efficient way to normalize and label the data using meta tagging and other techniques.

Remember that transparency is a virtue: There is an increased need in certain industries such as financial services to explain to regulators how the sausage is made, so to speak. As a result, entrepreneurs must be able to demonstrate explainability to show how the model arrived at the result (for example, a credit score). This brings us to an additional issue about accounting for bias in models and, here again, the entrepreneur must show the ability to detect and correct bias as soon as they are found.

Continue reading here:
What AI startups need to achieve before VCs will invest - TechCrunch