Credit Suisse leads $ 20 million Series A in data mining startup Daloopa – TechCrunch
Daloopa has closed a $ 20 million Series A funding round, led by NEXT Investors of Credit Suisse Asset Management, to continue to develop its data mining technology for financial institutions, which is now under expansion worldwide.
When the company’s co-founder and CEO, Thomas Li, worked as a hedge fund analyst, he often performed repetitive data pulls in order to gather information for analysis and forecasting.
In fact, he found that lawyers and similar finance professionals at financial institutions spent about a third of their time on these same tasks, while manually entering everything into spreadsheets.
“This was a big enough problem that a company could take care of all data analysis and forecasting without having to manually convert the data,” Li told TechCrunch. “It frees analysts to do what they’re supposed to do afterwards.”
The idea for Daloopa came to Li five years ago, but he said the data mining technology was not in place to get it started. Then in 2019, the state of technology was such that Li and his co-founders Daniel Chen and Jeremy Huang could create data mining capabilities through the use of artificial intelligence-based software. Customers can request datasets with just a few clicks and receive them the next day.
Accuracy of financial data collection “is mission critical”, but artificial intelligence models are often not able to achieve 99% accuracy, while Daloopa is able to surpass it, Li said. Latency and volume must also be at a point where the infrastructure can support the algorithms needed to collect data from thousands of different documents.
Existing investors Nexus Venture Partners, Uncorrelated Ventures and Hack VC have joined Credit Suisse in Series A. Daloopa has previously raised pre-seed and seed funds to give it $ 24 million to date.
As part of the investment, NEXT Investors and Nexus Venture Partners will each assign a member to the board of directors of Daloopa.
“Daloopa is disrupting the way financial data is extracted and consumed,” said Abhishek Sharma, CEO of Nexus Venture Partners by email. Nexus has led both the pre-seed and seed cycles in the business. “Its intelligent automation approach eliminates the increase in costs and makes data mining scalable, accurate and benchmarked. “
Meanwhile, the company will use the new R&D funding for product development, hiring additional staff, and building the tech stack these people can work on. He will also focus on sales, marketing and operations functions.
Li did not disclose any revenue metrics, but said Daloopa launched its product six months ago and now has 40 corporate clients. It is headquartered in New York and offices in New Delhi and Rio de Janeiro.
Initially, Daloopa focused on the finances of state-owned companies, but plans to shift to data mining for more private documents, such as documents that a bank uses with its clients.