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  • Essay / Data Mining - 2509

    Every day, almost every moment, we make decisions. The decision-making process is extremely important in our life. Since as long as you have made a decision, we will devote most of our capital, time, focus and energy to the direction you have chosen. We believe that a better decision can make life better. Different decision outcomes sometimes come from different sets of knowledge or people's preferences. Before carrying out this project, we reached a consensus that knowledge is power. And data mining can give us better insights to make better decisions. This project study will present the details of our work, including data preprocessing, exploratory data analysis, building predictive models, and analyzing results. The report is designed to have 4 sections. Section 1 will be a brief introduction to the project. Section 2 concerns data description and data preprocessing. The data mining methodologies we used are detailed in Section 3. Section 4 presents the results of this data mining project. Problem Description and Objective Venture capital is financial capital provided to certain young companies with high potential and high risk. The venture capital fund makes money by owning shares in the companies it invests in, which typically have an innovative technology or business model in high-tech sectors, such as biotechnology, computing and software. In addition, venture capital is attractive to new companies with limited operating history, which are too small to raise capital in the public markets and which are difficult to qualify for a bank loan. Typical venture capital investment occurs when venture capitalists show strong interest in targeted start-ups and expect high returns upon exit, which usually occurs upon IPO or acquisition of the company. The initial idea we have seems irrational at first glance. . We assume that we are the investment manager of a venture capital fund. We have 10 million in hand. Typically, if we don't do anything with that money, our money stays watered due to inflation. Indeed, the existence of a huge amount of historical data shows that data mining can provide a competitive advantage over human inspection of this data. Even though the economic theory called the efficient market hypothesis suggests that markets adapt so quickly in terms of price adjustments that there is no room to make profits consistently. However, this theory does not always correspond to the reality of the financial market, which leaves investors with some room for speculation. The general objective of venture capital is to maintain a portfolio of shares of certain start-up and high-potential companies..