Open Rating
Open Rating is a data-driven rating system for startups developed by DisTech Solutions. It estimates a startup's one-year probability of default – or, the other way round, its probability of success – based on its business model, its target market and real financial figures.
The rating is calculated by a logistic regression model trained on labelled startup data. On unseen data it reaches an accuracy of 88.6 % in a 5-fold cross-validation. All model weights are open and the calculation runs directly in the browser – there is no black box. The methodology is developed in cooperation with the Berlin Institute of Finance, Innovation and Digitalization (BIFID), an affiliated institute of the Berlin School of Economics and Law (HWR Berlin).
What You Get
- Probability of default (one-year horizon) or probability of success – shown in the view that suits your audience
- Risk class from 1 to 4 and OR class, combining the strength of the business model and of the market
- Detailed rating report as PDF, including a rating certificate as title page
- Scorecard of all evaluated factors, peer and benchmark comparison and macroeconomic context
Use Cases
Investors & Family Offices
Assess startups before signing an investment, compare candidates side by side and keep an eye on the overall risk of a portfolio.
Banks & Public Funding Bodies
Obtain a standardised probability of default as a transparent basis for credit and funding decisions.
Founders
See how your startup is assessed from the outside and which factors you can work on to improve your rating.
