Estimize Raises Series B Led By WorldQuant Ventures

  • Posted by on April 9th, 2015 at 1:33 pm
  • Comments: 0

I’m stoked to announce that we’ve raised $3M in Series B funding from an incredible group of investors led by the venture arm of our first client, WorldQuant Ventures. I’m currently writing this from my new private yacht cruising with the rest of the team off the magnificent coast of…. just kidding!

Back in 2012, WorldQuant (one of the most successful quant firms in the world) recognized the value in the Estimize data set and signed on as our first data client. Since then, Matt Ober, Steven Lau, and the WorldQuant Ventures team have given us amazing feedback and direction. When we decided it was time to seriously step on the gas, they already had a strong view on what this platform and company could become. We’re thrilled that they’ve been able to leverage our data set and will be behind us as we scale the platform and company.

It means a lot to us that several of our Series A investors participated as well, including Bob Greene at Contour Venture Partners who has been a strong guiding hand. We welcome all of our new investors, most of which come from buy side and sell side institutional backgrounds. They include:

Agilic Partners, Ross Garron (Head of Cubist Systematic), Frank Sica (Soros Funds), Brian Finn (CEO of Credit Suisse), Jarrod Yuster (Founder of Pico Quant Trading), Peter Nesvold (Argent Square Advisors).

We’ve spent the past 3 years since launching Estimize in January of 2012 building the most accurate and representative estimates data set possible. We’re now over 6,000 contributing analysts, covering 1,500 stocks and economic indicators per quarter.

I can without a shadow of a doubt say that this experiment in financial crowdsourcing has massively succeeded. A handful of published academic papers, a large report from the Deutsche Bank Quantitative Research team, our own research, and the exhaustive process it takes to sell data to large quantitative funds, have all proven that our data is not only far more accurate than our predecessors at Thomson Reuters I/B/E/S, it is significantly more representative of true market expectations. This research has also proven that Estimize data can be used as an excellent proxy for investor attention, and that there are a multitude of ways it can help to produce uncorrelated alpha.

We are so proud of what our community of contributing amatuer and professional analysts has built. To highlight their achievements we recently launched a live updating community statistics page which also gives a sneak peak at some of the actionable analytics features we’re currently building.

That said, we have a long way to go in fulfilling the promise of what Estimize can be. It’s my strong belief that crowdsourced structured financial data will completely usurp many critical financial data sets, historically gathered from only a handful of firms and individuals. The scale of the web and collaborative philosophies born here provide incredible opportunity to upend the closed and inefficient way things have been done in financial data for so long. There are so many more data sets to build, some of which we’ve already started on (economic estimates, m&a predictions).

We continue to look towards three companies that represent significant pieces of our strategy, values, and philosophy: Starmine, DataExplorers and StackExchange.

And we’re going to need (more) insanely talented people to take the next steps. We’re currently hiring for front end, back end, and full stack engineers, digital and enterprise marketing, and sales roles. You can find the full list here. We take team trips to Costa Rica to surf or Colorado to ski each year (not a joke), believe me you want to join this awesome group.

I feel exceptionally lucky every single day to work with such an amazing team. My goal is to be the dumbest, least competent person at this company in each of the various roles a startup founder must initially take, while empowering everyone else to fulfill the vision I’ve laid out.

Thanks so much for supporting this crazy experiment and being a part of the Estimize community, I can’t wait to show everyone the exciting stuff we’ve been working on, and for you to begin/continue paying us ;)

Now someone please fetch the deck hand and tell him to bring me another pina colada.

 

Full Disclosure: Nothing on this site should ever be considered to be advice, research or an invitation to buy or sell any securities, please see the Disclaimer page for a full disclaimer.



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