Atom Finance’s free Bloomberg Terminal rival raises $12M

Published December 12, 2019

If you want to win on Wall Street, Yahoo Finance is insufficient but Bloomberg Terminal costs a whopping $24,000 per year. That’s why Atom Finance built a free tool designed to democratize access to professional investor research. If Robinhood made it cost $0 to trade stocks, Atom Finance makes it cost $0 to know which to buy.

Today Atom launches its mobile app with access to its financial modeling, portfolio tracking, news analysis, benchmarking and discussion tools. It’s the consumerization of finance, similar to what we’ve seen in enterprise SaaS. “Investment research tools are too important to the financial well-being of consumers to lack the same cycles of product innovation and accessibility that we have experienced in other verticals,” CEO Eric Shoykhet tells me.

In its first press interview, Atom Finance today revealed to TechCrunch that it has raised a $10.6 million Series A led by General Catalyst to build on its quiet $1.9 million seed round. The cash will help the startup eventually monetize by launching premium tiers with even more hardcore research tools.

Atom Finance already has 100,000 users and $400 million in assets it’s helping steer since soft-launching in June. “Atom fundamentally changes the game for how financial news media and reporting is consumed. I could not live without it,” says The Twenty Minute VC podcast founder and Atom investor Harry Stebbings.

Individual investors are already at a disadvantage compared to big firms equipped with artificial intelligence, the priciest research and legions of traders glued to the markets. Yet it’s becoming increasingly clear that investing is critical to long-term financial mobility, especially in an age of rampant student debt and automation threatening employment.

“Our mission is two-fold,” Shoykhet says. “To modernize investment research tools through an intuitive platform that’s easily accessible across all devices, while democratizing access to institutional-quality investing tools that were once only available to Wall Street professionals.”

Leveling the trading floor

Shoykhet saw the gap between amateur and expert research platforms firsthand as an investor at Blackstone and Governors Lane. Yet even the supposedly best-in-class software was lacking the usability we’ve come to expect from consumer mobile apps. Atom Finance claims that “for example, Bloomberg hasn’t made a significant change to its central product offering since 1982.”

The Atom Finance team

So a year ago, Shoykhet founded Atom Finance in Brooklyn to fill the void. Its web, iOS and Android apps offer five products that combine to guide users’ investing decisions without drowning them in complexity:

Sandbox – Instant financial modeling with pre-populated consensus projections that automatically update and are recalculated over time
Portfolio – Track your linked investment accounts to monitor overarching stats, real-time profit and loss statements and diversification
X-Ray – A financial research search engine for compiling news, SEC filings, transcripts and analysis
Compare – Benchmarking tables for comparing companies and sectors
Collaborate – Discussion boards and group chat for sharing insights with fellow investors

“Our Sandbox feature allows users to create simple financial models directly within our platform, without having to export data to a spreadsheet,” Shoykhet says. “This saves our users time and prevents them from having to manually refresh the inputs to their model when there is new information.”

Shoykhet positions Atom Finance in the middle of the market, saying, “Existing solutions are either too rudimentary for rigorous analysis (Yahoo Finance, Google Finance) or too expensive for individual investors (Bloomberg, CapIQ, Factset).”

With both its free and forthcoming paid tiers, Atom hopes to undercut Sentieo, a more AI-focused financial research platform that charges $500 to $1,000 per month and raised $19 million a year ago. Cheaper tools like BamSEC and WallMine are often limited to just pulling in earnings transcripts and filings. Robinhood has its own in-app research tools, which could make it a looming competitor or a potential acquirer for Atom Finance.

Shoykhet admits his startup will face stiff competition from well-entrenched tools like Bloomberg. “Incumbent solutions have significant brand equity with our target market, and especially with professional investors. We will have to continue iterating and deliver an unmatched user experience to gain the trust/loyalty of these users,” he says. Additionally, Atom Finance’s access to users’ sensitive data means flawless privacy, security, and accuracy will be essential.

The $12.5 million from General Catalyst, Greenoaks, Global Founders Capital, Untitled Investments, Day One Ventures and a slew of angels gives Atom runway to rev up its freemium model. Robinhood has found great success converting unpaid users to its subscription tier where they can borrow money to trade. By similarly starting out free, Atom’s eight-person team hailing from SoFi, Silver Lake, Blackstone and Citi could build a giant funnel to feed its premium tiers.

Fintech can feel dry and ruthlessly capitalistic at times. But Shoykhet insists he’s in it to equip a new generation with methods of wealth creation. “I think we’ve gone long enough without seeing real innovation in this space. We can’t be complacent with something so important. It’s crucial that we democratize access to these tools and educate consumers . . . to improve their investment well-being.”

Sentieo raises $19M to be the AI-powered Bloomberg Terminal

Published October 30, 2018

To get an edge on the market, investors must look beyond traditional financial info like revenue and profits. Our every online activity generates data exhaust, like web traffic, Twitter mentions, app downloads and search trends. It’s the ability to overlay the old and new data sets to spot surprising trends that will set the best traders apart. Sentieo wants to be their tool.

Sentieo is an investment research software suite that uses AI to scan financial documents, analyze alternative data sets and create visualizations. The fintech SAAS startup now has 700 customers, including top hedge funds plus mutual funds, Fortune 500s and investment banks that pay around $500 to $1,000 per month per license. That’s a lot cheaper than a $21,000 yearly Bloomberg Terminal subscription. [Correction: Sentieo charges $500 to $1000 per month, not per year.]

Now Sentieo is ready to crank up its name recognition with a sales and marketing blitz fueled by a new $19 million Series A round led by Centana, a $250 million growth equity firm focused on fintech SAAS. Now with $30 million in total funding, the 160-person startup plans to “Educate [traders] that ‘hey, this product is built by people who sat in your seats,’” says CEO Alap Shah.

Sentieo charts Search Trends data and Sentieo Index data on Facebook versus the social network’s revenue.

Ten years ago, Shah was making the Wall Street rounds after graduating from Harvard in economics. He was an analyst in consulting at Novantas, private equity at Castanea, and worked for hedge funds Viking Global and Citadel. “It became clear that there were some really big holes in my process where software wasn’t meeting my needs. Importantly, there was a hole around search,” Shah tells me. “We’ve grown accustomed to going to Google. But unfortunately that’s just not the way the old-school financial data programs are structured.”

Sentieo co-founder and CEO Alap Shah

So he built his own. “I used all the financial tools out there: Capital IQ, FactSet, Bloomberg — each had their strengths and weaknesses. But they were all over 20 years old, so they pre-date the cloud, pre-date SAAS, pre-date mobile!” With Sentieo, he wanted to develop a tool that could understand the nuances of business momentum before it showed up in the balance sheets.

Sentieo does have a traditional financial equity data terminal with real-time pricing. But there’s also a machine learning and natural language processing-powered document search tool that can sort through SEC documents, earnings call transcripts, press releases and more. It taps Alexa web traffic data, Apptopia app download rates and Twitter chatter, as well as Thomson Reuters analyst estimates and fundamentals. Customers can annotate files, organize ideas, generate visualizations and share their insights through Sentieo’s Notebook.

For example, Sentieo could look through all of Tesla’s earnings calls and financial documents for mentions of guidance on Model 3 production volume. It could highlight them all, analyze the sentiment of those mentions and chart them against Tesla’s share price. Or you could search for all the companies starting to list President Trump as a risk factor for their business, which would surface how the medical cannabis companies are concerned about Attorney General Jeff Sessions’ stance on legalization.

Sentieo’s synonym library allows it to hunt down different ways of saying the same thing with the goal of not forcing investors — or their dutiful analysts — to read through 100-page 10-Q documents manually. “You can get the same information at 10x the speed with something like Sentieo,” Shah claims. It wants to a be a “research management system,” like a Salesforce CRM for tracking investment ideas.

But Sentieo’s 65-person India-based engineering must keep data from all 50 feeds, 25 million documents and 64,000 equities flowing to keep customers satisfied. There are a ton of moving parts, and Sentieo is competing with much bigger companies. Beyond Bloomberg, there are lots of alternative data providers out there. And Microsoft’s software suite also has plenty of info management tools.

Sentieo’s hope is to emerge as an aggregator of information sources and an annotation tool that benefits from being purposefully designed for what analysts need. If Robinhood is on one side of the spectrum making investing easy for novice traders, Sentieo is on the other end making investing smarter for experts. “It’s really at the bleeding edge of how you get the data today,” Shah concludes. “For every company driven by consumer demand, there are all these little breadcrumbs being left all over the internet.”

[Disclosure: I briefly rented a room in an apartment where Shah lived five years ago and I know him from the San Francisco social scene frequented by many Silicon Valley figures.]