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Security Type
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Crowd Note
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Categories
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Other
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Min Investment
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$1,000
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Offering Date
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May 11, 2019
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Expected Close Date
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August 09, 2019
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Target Raise
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$500.00K-$1.07M
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Deal Notes
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Conversion discount: 20.0%
Interest rate:5.0%
Note term:24 months
Company Description
AI powered trading algorithms for research analysts, portfolio managers, and financial advisorsWHY WE ARE HEREWe are working on some of the world’s most complex and interesting financial challenges. Our unique approach combines machine learning innovations with a rigorous research process and the relentless energy and focus of a technology start-up enabling us to solve exceptionally tough financial analysis, information processing, and investment management problems.The idea of using quantitative strategies is very attractive to many hedge funds, but funds have not been able to produce successful machine learning models internally. Even existing quantitative funds that are not using nuanced enough AI models are struggling.WHAT WE DOOur technology provides clients with tools to translate complex financial and unstructured data into accurate and impactful predictions. As a result, our clients enjoy breakthrough performance in predictive analytics for financial markets.Our analytical platform allows people to ask and answer complex questions, identify market anomalies, and improve investment performance without requiring astronomical investments in data, technology, or computing capabilities.We will work with global hedge funds, asset managers, banks, and corporations to monitor, link, classify, and measure large volumes of information across the globe to identify emerging trends and model their impacts.WHO WE AREWe have assembled a team composed of finance, engineering, and data science professionals from companies such as Susquehanna International Group, Bloomberg, Citi, J.P. Morgan, Intel, Merrill Lynch, and NASA. Our engineers and scientists have decades of practical expertise in artificial intelligence technologies, distributed information processing, and data science and our unique culture is based on an unwavering focus on executing in service of our clients.
Perks
$2,000 (“Bronze”) — 3 month subscription access to Alpha Vertex’s premium StockTwits community for long/short trade ideas based on our unique quantitative equity models.
$5,000 (“Silver”) — 12 month subscription access to Alpha Vertex’s premium StockTwits community for long/short trade ideas based on our unique quantitative equity models.
$10,000 (“Gold”) — All of the above plus a private video conference with team members discussing specific investment insights generated by Alpha Vertex’s products.
$25,000 (“Platinum”) — All of the above, plus investor level access to private research produced by Alpha Vertex's data scientists.
$100,000 (“Diamond”) — All of the above, plus arranged and paid airfare and a dinner invitation to meet with Alpha Vertex's CEO and key players. Also includes invitations to annual updates with the Alpha Vertex senior management team.
Key Deal Facts
Raised $725K pre-seed; investors include Anthemis Group and ffVC
Customers include a Fortune 500 Japanese auto manufacturer and two multi-billion dollar hedge funds
Selected as part of the inaugural AI Nexus Lab in collaboration with NYU and ffVC; graduated from the FinTech Innovation Lab, run by the NYC Partnership Fund, in 2018
Coverage of 4,000 stocks in the U.S. and Canada; we represent up to 98% of the investable market cap in the U.S.
Average prediction accuracy of approximately 60% (unaudited and based on management estimates)
Use of Proceeds
Engineering: 35%-30%
Model Development: 20%
Cloud Infrastructure: 20%
Sales & BD: 15% - 20%
Operations: 10%
Management Team / Advisory Board Bios
Mutisya Ndunda - CEO
Prior to founding Alpha Vertex, Mutisya was the Head of Strategy & Business Development for Bloomberg Enterprise Solutions for 5 years where he oversaw the groups overall product strategy, and incubation of new financial products and services.Prior to Bloomberg, Mutisya served as the Head of North America Business Development and Chief of Staff for Susquehanna International Groups proprietary trading businesses including acting as the lead manager and go-between the technology, quantitative research and trading divisions of SIG’s global market making business.Mutisya has a strong analytical mindset and has over 10 years of domain experience in machine learning, deep learning, natural language processing and big data analytics.Mutisya holds a Bachelor’s Degree in Electrical Engineering from Cornell University and a Master’s Degree in Financial Engineering from Cornell University.
Michael Bishop - Co-Founder
Michael Bishop is a CTO with 20+ years’ experience in Financial Services, startups and technology. He is a professional with hands-on knowledge that spans systems design, engineering, and programming, networking, graph theory, high performance computing, machine learning, project management, Six Sigma, and managing distributed teams and projects. He's worked at NYNEX S&T and JP Morgan, architecting and building secure and remote access systems and running a global group of 250 technologists.During his time in equity research, he developed a deep understanding of the domain of knowledge discovery, automated reasoning, information retrieval, and automated information extraction. After leaving JPM, he ran a small private equity and arbitrage firm and traveled the world advising startups in locations such as South Africa, New Zealand, the UK, and Hungary. Prior to joining Alpha Vertex, he worked as CTO of Emozia, a machine learning company with a mission of leveraging the telemetry from mobile devices to infer emotion and mood.
Deal Notes
Conversion discount: 20.0%
Interest rate:5.0%
Note term:24 months
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Valuation
Security Description
A Crowd Note modifies the typical convertible note so that the crowd does not automatically convert to equity shareholders on the next financing and remain off the issuer’s capitalization table, but the crowd will still participate in any exit as if they had converted to equity. If there is no future financing, the holders of the Crowd Note still have upside, but could miss out significantly.