AlphaSense: Cutting Through Information Overload

Apr 28 2016 | 11:38pm ET

Editor's Note: The best inventions are often those that are borne from real-world problems or frustrations. Indeed, many of the greatest fintech innovations have come from former equity analysts, money managers and backoffice professionals that have encountered a need during their day jobs, and built a product to meet it. San Francisco-based AlphaSense is a prime example; the founders of the business recognized the extraordinary amount of time they were spending searching and consolidating corporate and financial information, rather than acting on it. From that frustration, AlphaSense was born.

Company name: AlphaSense, Inc.

Locations: San Francisco, New York, London, Helsinki

Website: www.alpha-sense.com

Fintech Sector(s): Investment management solutions and services 

Elevator Pitch: AlphaSense is a revolutionary, award-winning search engine that helps you to instantly cut through the noise and uncover critical data points that others miss

Year Formed: 2008                                

No. of Employees: 65

Stage: In revenue

Notable investors: Tribeca Venture Partners, Triangle Peak Partners, Quantum Strategic Partners (fund managed by Soros Fund Management)

Tell us a bit about your company and what it does?

AlphaSense is a SaaS-based technology company serving the global financial services industry. AlphaSense was founded with a singular mission: Apply cutting edge technology to help investment professionals find information and execute on ideas – before others do.

How is AlphaSense different than other companies in the same space?

AlphaSense offers a unique search engine that has created a new standard for information discovery. Using a blend of advanced linguistic search and natural language processing algorithms, our proprietary search engine enables investment professionals to search and analyze filings, news, research and other disclosures for critical data points that others are missing – at unprecedented speed and accuracy. 

What is your revenue model?

AlphaSense offers a tiered, subscription-based model.  Our platform is used by hundreds of investment firms, including 13 of the largest 25 hedge funds, ranked by equity assets. 

Who is your target market?

AlphaSense is applicable to knowledge professionals across a number of industries which spend significant time manually searching through filings, research reports, websites and other resources – a process that should be automated. AlphaSense has a strong presence in the institutional investment community, empowering analysts and portfolio managers to dramatically improve their fundamental research and portfolio management efforts. 

How big is the opportunity?

There are over 23,000 hedge fund, private equity and mutual fund companies that can benefit from the AlphaSense investment research platform.  

There are 10 million professionals spending on average one workday every week searching for information, rather than acting on it. According to a study from International Data Corporation (IDC), employees spend 36% of each day searching and consolidating information. More troubling is that these workers can only find the information necessary to perform their jobs 56% of the time.

Why are you and your team capable of succeeding?

Our founder, Jack Kokko, is a former equity analyst and successful entrepreneur, who has leveraged his significant experience to challenge the status quo in how fundamental research and corporate intelligence is performed.  

Jack and co-founder, Raj Neervannan, have assembled a team comprised of seasoned professionals, with a unique combination of investment domain knowledge coupled with natural language and search technology expertise. 

The company is also well capitalized to drive future growth, having recently completed a $33 million fundraise with investments by a number of well-known institutional investors.

What is your company’s next target/milestone?

AlphaSense will be rolling out new and exciting features this year, as we continue to execute on our growth strategy.

Can you tell us one unusual fact about your company?

AlphaSense was born out of a Wharton business school project in 2008, where the cofounders met and tackled a huge problem they had previously experienced in their professional careers.


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