An Algorithm Can Pick the Next Silicon Valley Unicorn

Silicon Valley's unicorn hunter Erlich Bachman played by T.J. Miller, who said he plans to leave the show. (Credit: HBO) In the world of venture capitalists, not everyone is Peter Thiel. The Silicon Valley investor reaped 1 billion dollars in 2012 when he cashed in his Facebook stocks, turning a 2,000 percent profit from his initial $500,000 investment. Stories like Thiel's may be inspirational, but they are by far the outlier. The start-up world sees thousands of hopeful companies pass through each year. Only a fraction of those ever return a profit. Picking a winner, the elusive "unicorn," is as much a matter of luck as it is hard numbers. Factors like founder experience, workplace dynamics, skill levels and product quality all matter, of course, but there countless other variables that can spell heartbreak for an aspirational young company. Successful venture capital firms claim to know the secret to success ...