The Startup World Gets A Rating System

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One of the main difficulties facing potential investors in startups is that the ecosystem’s decentralized nature, along with the potential for growth most new businesses possess (especially those offering services online) makes accurate predictions about a company’ future quite challenging.

While traditional auditing techniques can allow angel investors to rate new businesses based on their own criteria, an effective global ranking system, providing analysis regarding the market potential of new businesses has been sorely missed.

This is what Oddup is introducing to the market.

The Hong Kong based firm seeks to serve as the “Standard and Poor’s for startups”, and has been picking up steam recently, being listed as one of Angel List’s most ‘trending’ new businesses.

Oddup’s platform allows users to estimate the likelihood of a specific startup to succeed in the global market through a series of ratings they input based on several factors. These include industry, location, team, market, and competitors among others. The startup will then be allocated an overall score on a 0-100 scale.

Each company’s individual page holds information related to the firm’s standing versus the industry average, along with details regarding the investment it’s accumulated thus far. As of February, the site has just over 21,000 active users. The service will also soon be available via mobile app.

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How It’s Effective

The problem with hearing about the “Uber for….” is that there’s probably a handful of companies doing the same thing. The startup world has lacked an effective rating system which will provide investors with the means to stack competing new ventures against each other and determine which one is actually worth funding.

Accumulating effective data on such diverse, varying fields has been a major roadblock for venture capital firms, and angel investors. Through crowdsourcing reviews, Oddup brings transparency, and more importantly, legitimate analysis to a part of the business where it was lacking. It also allows users to pick up on industry trends as they happen, providing a head start in funding businesses active in growing markets.

Beginning Of a Theme?

While it’s too early to tell whether or not Oddup will ultimately become the go-to rating system in for the global startup ecosystem, the business has managed to pick up on an aspect of the industry which up until recently was essentially untapped.

Crowdsourcing can be a valuable tool for systems such as these, and since the door has been opened, one would assume new firms will follow suit in finding ways to utilize such methods to rank new businesses.

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