London-based Finbourne has raised $70 million in a Series B funding round to expand its innovative financial data platform beyond the UK’s financial district. The funding was co-led by Highland Europe and AXA Venture Partners, valuing the company at approximately $356 million.
CEO Thomas McHugh, who previously worked as a senior quant at the Royal Bank of Scotland (RBS), founded Finbourne. His experience during the 2008 financial crisis, when RBS underwent a massive reorganization, inspired him to create a more efficient data management system. The crisis highlighted the inefficiencies of siloed business units and the potential of a unified data platform.
Finbourne Approach and Products
Finbourne designed its platform to help financial companies organize and utilize their data more effectively, particularly in AI and other advanced models. The company’s product suite includes:
- LUSID Operational Data Store: Manages operational data across various asset classes.
- Investment and Accounting Books of Record: Used for asset management analysis.
- Portfolio Management Platform: Tracks positions, cash, P&L, and exposure.
- Data Virtualization Tool: Facilitates data handling for training AI models.
Finbourne emphasizes the importance of customized AI models for financial firms. Unlike generic models trained on shared data, Finbourne trains each client’s AI models exclusively on their own data. This approach reduces the risk of “hallucinations” or inaccuracies in AI outputs, enhancing the reliability and security of financial predictions and operations.
Market Position and Competitors
Finbourne operates in a competitive market with rivals such as BlackRock’s Aladdin, SimCorp, State Street Alpha, and others offering similar financial data solutions. However, Finbourne’s unique approach and comprehensive product suite have attracted significant clients, including Fidelity International, the London Stock Exchange Group, Baillie Gifford, Northern Trust, and the Pension Insurance Corporation (PIC).
With the new funding, Finbourne aims to expand its reach beyond the UK, leveraging its scalable technology to support financial institutions globally. The company’s goal is to provide a simplified, unified platform that can replace the fragmented and siloed systems traditionally used in financial services.
Finbourne’s recent funding and strategic vision highlight its potential to revolutionize financial data management with AI. Finbourne is well-positioned to become a key player in the financial technology landscape by providing tailored, secure, and efficient data solutions, helping institutions harness the power of their data to drive innovation and efficiency.
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