Essentia Analytics successfully raised £343,088 on SyndicateRoom in spring 2016.
Just like athletes review their performance and look for ways to improve their habits, Essentia gives professional investors helpful nudges to keep them on course and help hone their skills.
An interesting case study of Essentia at work is that of a fund manager operating a $10bn global equity fund. A habit that might be very familiar to many investors, this fund manager has a habit of holding onto losing positions for too long.
Based on his behaviour and the performance of stocks he was buying and selling, Essentia was able to notify him each time he was holding on to underperforming stocks This helped him make better investment decisions. Over the course of seven months, Essentia notified him 15 times about his habit and helped him save $1m that would otherwise have been lost. This saving of $1m is 20 times what he paid for his Essentia licence ($50,000).
Fundamentally, the business is built on my own career experience – Essentia is the software I wish I had when I was a hedge fund manager.
Clare Flynn Levi
Essentia Analytics has ten paying clients including Union Investment Institutional, Generali Investments Europe, Brown Advisory and Artemis Investment Management. At the time of the raise (spring 2016), it was true that 80% of the company’s Proof of Concept projects had converted into full license sales, and 100% of their users had renewed their licences.
Armed with successful case studies and blue-chip reference clients, Essentia sought to raise funds to aggressively grow its revenues.
Where are they now?
In autumn of 2016, Essentia was named in the Financial Times’ top ten fintech companies to watch and won Best New Fintech Solution for Hedge Funds at the 2016 HFM Awards.
This news came at the same time as CEO Clare Flynn Levy was featured in Innovate Finance’s Women in Fintech 2016 Powerlist.