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FailSafe AI – Startup Risk Intelligence Platform

FailSafe AI is an AI-driven platform designed to analyze startup financial health, predict failure risk, and simulate a structured risk-sharing mechanism similar to an insurance model.


Overview

The platform evaluates startups using key financial and operational indicators to generate a comprehensive risk profile. It combines rule-based scoring with machine learning to support data-driven decision-making for founders, investors, and risk analysts.


Key Features

  • Risk Intelligence Dashboard
    Provides a real-time overview of startup risk metrics, including risk scores, expected failures, payouts, and system buffer.

  • AI Risk Mentor
    Identifies critical risk factors and offers actionable mitigation strategies based on financial inputs.

  • Failure Verification System
    Assesses whether a startup failure claim is genuine or potentially fraudulent using heuristic and ML-based validation.

  • Premium and Payout Engine
    Simulates a financial protection model by calculating premium contributions and estimated payouts.

  • Machine Learning Integration
    Uses a Random Forest classifier to predict risk levels and probability distributions.


Technology Stack

  • Frontend: Streamlit
  • Backend: Python
  • Database: SQLite
  • Machine Learning: Scikit-learn (Random Forest Classifier)
  • Data Processing: Pandas, NumPy

Methodology

The system evaluates startups based on:

  • Monthly Revenue and Expenses (Burn Rate)
  • Growth Rate
  • Runway (in months)
  • Team Size
  • Market Risk
  • Funding Level

These inputs are used to:

  1. Compute a composite risk score
  2. Classify startups into risk categories (Low, Moderate, High)
  3. Estimate premium contributions and payout coverage
  4. Predict risk probabilities using a trained ML model

Live Application

Streamlit App: http : https://failsafe-ai.streamlit.app/

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AI-Based Startup Failure Prediction & Risk Sharing Platform

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