Israeli based fintech company TipRanks announced today the completion of a $77 million financing round led by Prytek and More Investment House.
Founded in 2012 by CEO Uri Gruenbaum and Gilad Gat, TipRanks provides a simplified stock research platform that makes alternative datasets accessible and visual for retail investors.
TipRanks currently has 60 employees located mostly in Tel Aviv. With the new investment the company plans doubling its work force and opening offices in New York.
In 2013 TipRanks launched its Financial Accountability Engine to bring transparency to online investment advice for the first time. Using Natural Language Processing it tracks and measures the performance of over 7,000 professional analysts and enables investors to see their track record and evaluate their advice. The service has been adopted on Wall Street for ranking analysts and is used by most banks.
Gruenbaum said, "In addition to being the only company that ranks analysts based on their performance rather than the prestige of the bank they work for, we are the only company that makes aggregated analyst ratings available to retail investors. This gives investors access to information that would otherwise cost tens of thousands of dollars each year."
He added, "We have leveraged our popularity and strong tech capabilities to launch more tools and datasets. This has given the average Joe and Jane access to the same data as the biggest asset managers. We analyze all finance related news, corporate filings, analyst research and social media to provide retail investors with the same level of information that only institutional investors can afford. By doing so we enable retail investors to make data-driven investment decisions." TipRanks saw saw subscription sales grow by 300% over the past year and the company has over 4 million monthly users. It also has an enterprise solution used by numerous financial institutions including Nasdaq, E*TRADE, TD Ameritrade, eToro, Bank Santander and others that have integrated TipRanks’ research tools onto their platforms.
Gruenbaum added "There has never been a more important time in capital markets history to provide transparency to individual investors. We have all seen how responsive investors are to trends on social media. Today, all you need to become a ‘Financial Expert’ influencer is an email address. Our platform helps millions of investors evaluate ideas and make data-driven decisions. We plan to use the new funding to create and acquire more exclusive datasets that will give retail investors a real edge. We will also expand our coverage to other asset classes and markets."
Prytek founder Andrey Yashunsky said, "Today there are plenty of different trading platforms that make investing very accessible. This has created a new problem where non-professional investors are being misguided by rumors and bad advice. We loved the fact that TipRanks provides unbiased and objective insights. Our vision is for TipRanks to become the leading information platform that every investor uses before making an investment decision."
Published by Globes, Israel business news - en.globes.co.il - on April 8, 2021
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