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Screenshot of a breaking news alert e-mail from Q2 2017
Knowledge is power, an adage that is undoubtedly applicable to those intending to gain an advantage when trading via electronic platforms.
A great many innovative methods of receiving information have come about recently, some of which are provided by relatively small firms that provide news, analytics and information to traders, as well as unscramble data required to ensure that traders can make informed decisions. There is, however, a lack of information on the performance of financial professionals which is easily available online.
Yesterday, however, signaled a milestone in the potential value of ancillary firms that provide valuable information, as it was reported that Israeli start-up TipRanks has completed Round A of its venture capital funding with a $3 million investment.
Among the backers is former New York State Governor Eliot Spitzer, a prominent government figure who rose to fame and garnered vast public support during the global financial crisis of 2008 when he made a priority of bringing corrupt financiers to book whilst he held the post of New York State’s Attorney General.
Unfortunately for Mr. Spitzer, his marital fidelity was less earnest than his professional fidelity, resulting in his resignation six years ago.
Other investors in TipRanks include Roni Michaely and angel investor John Nakamura.
TipRanks was founded in June 2012 by Uri Gruenbaum, currently CEO, and Gilad Gad, CTO, with $700,000 worth of seed money as a resource for investors after the two realized that there is not enough public information available on the track records of experts providing financial advice online, so that investors do not know whose advice to trust.
TipRanks ranks over 6,500 analysts and bloggers on the basis of their success rate of financial advice, average return, and consistency. It uses machine learning and natural language processing algorithms (NLP) to analyze the Internet and measure the performance of anyone giving investment advice online on leading financial blogs and websites. Among its users are financial institutions all over the world, including leading Israeli banks Bank Hapoalim and Bank Leumi.
“TipRanks was created because there is a lot of bad advice making the rounds in top financial publications,” Mr. Gruenbaum explained to Israeli financial portal Globes.
“Let’s face it, not all analysts are created equal. By scanning leading financing websites for analyst recommendations, TipRanks is able to provide it’s users relevant information regarding the analyst’s performance history so that they can make informed financial decisions” he concluded.