The Prediction Models Forecasting Global Market Shifts
Liquidity’s proprietary decision science technology is able to anticipate market shifts and integrate them into its risk models, underwriting assumptions and capital strategies.
A recent case study compiled by Liquidity’s data science teams forecasts the overall default rate for VC-backed companies that have raised over $5 million by analysing past events.
Liquidity’s machine learning (ML) model took into consideration a range of macro and industry level features, from monetary and fiscal policy to current economic conditions and overall VC funding patterns.
“What makes our approach distinctive isn’t just the use of AI in predicting a company's revenue generation or business fundamentals.”
- Oron Maymon, Liquidity’s co-founder and Chief Science Office, Liquidity.
“It’s how we tailor our models to the funding realities of venture-backed firms. That’s what helps us remain resilient, even in unpredictable markets.” - he adds.
Backtesting showed that Liquidity’s model predictions successfully captured distinct periods between 2005 and 2024, including the high default years post-global financial crisis (GFC) when unemployment was high and interest rates were zero, the lower default rates in the years immediately preceding COVID and then the turbulent post-COVID years.
The study reveals Liquidity’s AI forecasting model’s ability to accurately predict shifting market trends ahead of time to keep its portfolio companies proactive in the face of market shifts.
“No matter what’s happening in the market, our approach remains grounded, data-informed and deliberately cautious. It is designed to propel our portfolio companies through changing cycles.”
- Oron Maymon, Liquidity’s co-founder and Chief Science Office.
Liquidity is the world’s leading pioneer of bespoke technology for private credit, powered by advanced infrastructure with AI at its core. It defines a new standard in capital allocation through a nexus of the sharpest minds in private credit and technology.
Proven at scale in Liquidity’s own multi-billion-dollar private credit business, this technology deploys capital faster than any firm in capital markets history—with unmatched speed, precision, and adaptability across North America, Europe, APAC and MENA.
Liquidity develops bespoke technology infrastructure for banks and asset managers, embedding intelligent decision science across the full credit lifecycle from origination to compliance, while serving visionary growth-stage and mid-market companies in 45+ sectors through its own structures and funds.
Built on trust and backed by leading institutions including MUFG Bank Ltd., Spark Capital, KeyBank, Cross River Bank, Meitav Dash, IDB Bank, and others. Visit liquidity.com.
