Innovations by alternative data startups are opening deeper insights into opportunities for emerging players in global markets.
FREMONT, CA: The use of data to drive intelligent decision-making and business operations has reached several highs with the advent of technologies that help generate, accumulate, store and process it. Capital market companies, including investment banks and asset management firms, have found alternative data to be of great value in enabling better strategy formulation and market prediction. Every firm in the capital markets looks for ways to make reliable choices to get better profit margins. Alternative data, derived from scattered sources, provides a lot of insight that was previously inaccessible, even with the most advanced technologies. Alternative data companies have been rising in numbers as several startups join the ranks regularly, with impressive funding to back them. Here is a list of high-performing alternative data vendors who are supplying the capital market industry with all the data they require to infuse intelligence into investments, buying and selling.
Thinknum is a New York-based company that provides alternative data services that guarantee insights into every aspect of a firm including its employees, customers and products. The alternative data startup offers some of the most exciting services in the segment and has managed to raise $11.6 million in its last round funding that took place in early 2019. The company that started in 2014 has managed to stay profitable and is in the process of expanding its business further. Green Visor Capital has been one of the principal investors from the beginning of Thinknum. The simple platform that the company offers in the form of SaaS is being used by companies from across industries to make the right call about capital investments through its visualization and analytics tool which process the datasets it offers.
Yewno is a data science platform with AI(Artificial intelligence) capabilities that provides several sources of information to a range of sectors which also includes the capital market industry. With its extensive knowledge base, the company gives its clients deep insights into factors that drive businesses and helps them predict alpha signals, sentiment scores and market flows. With a total of 4 rounds of funding, Yewno has generated a total of $30 million.
The infusions have played a role in helping the company enhance its innovative approach to data discovery and other related processes. The funding points to the rising value of alternative data firms in the market and the trend is expected to continue in the coming years.
Dataminr is an alternative data company with one of the highest valuations in the market today at a whopping $1.6 billion. Major global investors have driven the funding that has helped Dataminr double its valuation. In the latest series of funding, the company has raised approximately $392 million. With the technology to capture information available in the open, Dataminr has been able to derive vast amounts of information that translate into sharp and high-impact insights. By assisting finance and business firms in getting access to processed alternative data which are relevant to respective markets in real-time, the company enables faster market analytics and predictive decision-making.
• App Annie
App Annie provides market intelligence and tracking services to companies and helps them generate and convert alternative data into useful business inputs. The San Francisco-based company raised $63 million in its latest Series E funding. The company had been on the path of rapid growth after its previous successful funding rounds, and the latest infusion has resulted in an expanded employee base as well as an increased number of acquisitions. As the demand for alternative data and analytics grows, App Annie's valuation is expected to rise, and its position as a leading vendor is going to be strengthened further.
These alternative data platforms, driven by high growth and funding, are offering fresh perspectives to capital market firms and improving business outcomes and processes.