Canada-based algo-advisor Delphia has raised $60 million in a Series A funding round led by Multicoin Capital.
The latest funding round of Delphia also attracted participation from Ribbit Capital, FTX Ventures, Valor Equity Partners, FJ Labs, Lattice Ventures, Cumberland, Thomas Bailey from Road Capital and M13.
What Delphia does?
Delphia is an algo-advisor that offers people smart invest solutions. Designed by a team of data scientists and academics, Delphia analyzes the personal data shared by its members to make intelligent investment decisions.
Delphia’s investment platform leverages consumer spending insights, employment patterns and public opinion data derived from social media to deliver algorithmic models that were previously exclusive to top-performing hedge funds.
By converting personal data into investment capital, Delphia aims to change the way we think about our data, investing, and the future of our economy.
Andrew Peek, CEO of Delphia, noted that retail investors are forced to either invest in passive robo-advisors that are designed to achieve average returns, or they can pick stocks directly through platforms like Robinhood or E-Trade — where they’re up against the best hedge funds in the world.
According to Andrew, Delphia gives investors a third choice in the form of a mobile-delivered algo-advisor that leverages machine learning models designed by top hedge fund professionals. This offers access to elite financial products for retail investors.
Andrew is a serial tech entrepreneur. Over the last ten years, he has played key roles in founding and scaling several of Canada’s most notable startups, including FreshBooks, Shopify, Jet Cooper, Next to North, and Camp Reset.
The Company offers long-only actively managed investment strategies with zero management fees and $10 investment minimums, as well as a hedge fund for accredited investors that runs a long-short market neutral strategy of approximately 2,500 US equities.
Starting this summer, Delphia’s investors will have the opportunity to contribute their own data to the algo-advisor in return for a native token that can be traded freely or redeemed for membership benefits, thus leveling the playing field between institutional and retail investors.
Delphia Series A funding
Tushar Jain, Managing Partner of Multicoin Capital, the VC which led the investment round termed Delphia as a ‘Data DAO’. He called Delphia a first mover in a new trend of Data DAOs seeking to leverage user-owned data to benefit those users.
“By carefully aligning incentives and collecting otherwise inaccessible data, Delphia has created a sustainable market edge that actually gets stronger with every new user that joins the platform,” Jain said.
Tushar said that Data DAOs will become forces to be reckoned with in capital markets as the gap widens between data sources publicly available for purchase and proprietary data sources that can only be managed by DAOs and for the benefit of those DAOs.
Delphia plans to use the funds to launch its native rewards token, increase the number of ways users can contribute data, and expand its headcount globally.
Speaking of the future plans, Andrew Peek, said:
“Our new strategic investors and the funds from this round will enable us to share our algorithmic breakthroughs with anyone willing to contribute data or dollars, no matter how big or small.
We’re most excited about rewarding our members with a true data dividend for helping us build the world’s largest user-contributed proprietary data set. We expect this token to help us improve the stock selection algorithm for all the participants in our ecosystem.”