ESG Data Specialist TruValue Labs Secures $13.6 Million in New Funding
The San Francisco-based company will use the investment to expand its language coverage and its AI-driven predictive analytics.
Hendrik Bartel, CEO and co-founder of TruValue, says that the company will use the investment to expand the depth and breadth of its platform to include multiple languages, as well as to add new asset classes to its coverage areas.
“The amount of unstructured data sources is growing quickly, so we are always looking to add additional coverage where the data is relevant,” he says. “In addition, we are preparing to expand from intangible risk issues, such as ESG, to additional risk classes and macro risks.”
TruValue is currently developing a Japanese-language model and a German model, which are slated to be released in the second half of 2018, Bartel tells WatersTechnology. The vendor will expand its language capabilities continuously from there.
As was detailed in this feature in the August 2017 issue of Waters magazine, TruValue’s Insight360 platform uses artificial intelligence—and, most notably, natural-language processing (NLP)—to take in large quantities of unstructured data to develop an ESG score. The company’s AI-driven algorithms sift through various sources of information to develop this score, such as magazines, trade publications, news sites, thought-leader blogs, a parsed set of social media “experts,” as well as government filings.
Increasingly, firms are incorporating ESG data into their models and portfolios, and independent research has found that firms with superior performance on material sustainability issues tend to outperform firms with inferior performance on these issues. One such report, released in 2015 by Harvard Business School, titled ‘Corporate Sustainability: First Evidence on Materiality‘—found an estimated 3.39 percent to 8.85 percent annualized alpha improvement for firms with high performance on material sustainability issues as prescribed by the Sustainability Accounting Standards Board (SASB).
Bartel says that as the company expands its language and geographical coverage, it will also look to grow its team of data scientists and quants with AI experience. This will help the company to “start building algorithms that provide predictive analytics for our customers.”
“Our product is rooted in big data and we have harnessed millions of daily ESG data points which gives us endless possibilities for expanding and evolving our product using cutting-edge techniques,” he says. “We are also investing in growing our sales teams, bringing on a number of channel partners, as well as growing the product management team.”
Other investors beyond Katalyst include Hearst Financial Venture Fund, The Entrepreneurs’ Fund, Sun Hung Kai Strategic Capital Limited, as well as individuals including William Campbell, the former chairman of JPMorgan Chase Card Services and CEO of Citibank Global Consumer, and Tom Chavez, former CEO and co-founder of Krux.
Further reading
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
LSEG unveils Workspace Teams, other products of Microsoft deal
The exchange revealed new developments in the ongoing Workspace/Teams collaboration as it works with Big Tech to improve trader workflows.
IBM report finds ‘shadow’ data significant contributor to data breaches
As AI and cloud take on greater importance in the capital markets, firms need to consider their threat impact zones.
Bloomberg adds AI earnings summaries to Apple Vision Pro app
The vendor continues to add content and functionality to its Bloomberg Pro for Vision app, which sits at the convergence of spatial and mobile computing.
SS&C continues Blue Prism rollout, eyes other acquisition targets
The company is focusing on organic growth while keeping its eye on potential acquisitions.
CME: CFTC OKs clearing move to Google Cloud
The CFTC has given the Chicago-based exchange approval to run its clearing and settlement infrastructure on the Google Cloud Platform, while the exchange and vendor have extended their partnership to last until at least 2037.
Once a blockchain cheerleader, Axoni changes its playbook
The fintech, whose origins can be traced back to the genesis of capital markets’ complicated flirtation with DLT, has largely ditched the tech as the foundation of its data synchronization offering, opting for more familiar territory.
The IMD Wrap: Quality drivers—the sticks and carrots accelerating the data quality race
Like a Formula One Grand Prix, data management is a race that can be won or lost. And just as each race is part of a larger F1 championship that pays large sums of TV money to the winning team, winning or losing one race can contribute to winning or losing an endgame with much more at stake.
This Week: Clear Street, Hudson River Trading/Google Cloud, Alveo and more
A summary of the latest financial technology news.