The challenge

High growth firms (HGFs) are firms that achieve a rare revenue growth rate of 20% or more on average over three consecutive years. Accurate predictions of such HGFs matter because they enable investors to capitalize on lucrative prospects, support economic growth, and foster innovation. For instance, early investments in HGFs (i.e. before the firms achieve high growth) typically offers abnormal returns outweighing those given by market indices (i.e. S&P500). However, traditional methods have struggled to accurately identify these high-growth periods, resulting in lost investment opportunities and inefficient capital allocation.

The solution

Our machine learning (ML)-based solution addresses the challenge of predicting high-growth firms (HGFs) by analyzing extensive data sets through sophisticated ML models. This helps deliver more precise forecasts, ultimately empowering investors and stakeholders to make well-informed decisions. Moreover, our algorithm can deduce the optimal managerial actions that could help the firm achieve high growth in the future based on its own current resources and actions. Hence our solutions also contribute in promoting the proliferation of HGFs and improve economic growth.

Mission

Our mission is to predict high growth firms.