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Eric Schmidt described what a perfect startup will look like in 5 year's time

Jun 17, 2016, 14:17 IST

Google CEO Eric Schmidt speaks during the company's Chrome event in San Francisco December 7, 2010. REUTERS/Beck Diefenbach

Alphabet executive chairman Eric Schmidt has outlined what he sees as being the ideal startup in five year's time.

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Schmidt says that a key quality of a future successful tech company is relying on crowdsourced data. He gave the example of a company that sources data about skin cells, and then uses machine learning to process that information.

"[A good company would] use Android, iOS, and machine learning but use the crowd to learn something trivial," Schmidt said on stage at Startup Grind Europe on Wednesday.

One example company that Schmidt provided was a dermatology company funded with $1 million (£700,000). He suggested that the company could pay dermatologists $1 each for information on skin cells and the problems they had, and then use machine learning to develop a recognition system that could take an image of a skin cell and diagnose a problem.

"You could sell that service to dermatologists because it's more accurate than an individual diagnosis. That model is a highly likely candidate to become a $100 billion (£70 billion) corporation."

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Elsewhere in his onstage interview, Schmidt heaped praise on British startup DeepMind, which Google acquired in 2014 for $500 million (£352 million). Schmidt said that DeepMind is "one of the greatest British success stories of the modern age."

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