/artificial intelligence

News and resources on artificial intelligence systems, innovations and initiatives worldwide.

AI stock picking platform Danelfin raises €2 million

Source: Danelfin

Danelfin, an award-winning company developing artificial intelligence technology to improve stock selection and portfolio management for retail investors, has raised 2M € in a funding round led by pan-European venture capital firm Nauta Capital, with participation from existing investors.

Danelfin provides an AI-powered stock analytics platform that revolutionises decision-making for retail investors worldwide. The platform transforms thousands of stock features into an easy-to-understand stock-picking score: the AI Score (rating investments from 1 to 10). Stocks with AI Score 10 have outperformed the market (S&P 500) by +14.69% on average after 3 months (annualised alpha) in the last 5 years.

The retail investing boom has attracted millions of new investors in the USA and Europe. In the past two years, about 30 million people in the USA opened brokerage accounts. Retail investors now make up 25% of all stock trades, much higher than a decade ago. In February 2023, daily investments from retail investors hit a record $1.5 billion. Additionally, 61% of U.S. adults invested in the stock market in 2023, up from 52% in 2016.

Unfortunately, most retail investors who pick stocks actively tend to obtain poor results. Millions of fundamental, technical, and alternative data points influence stock prices daily, and retail investors cannot process all that data. They need help making smarter investment decisions informed by data and not emotions.

“When I started investing in the stock market, I was overwhelmed by the unmanageable amount of information and news about stocks,” says Tomás Diago, founder & CEO of Danelfin and former founder of Softonic. “How could investors analyse all that data to make informed decisions? It was impossible for a human mind. I realised that only artificial intelligence could do it, filtering out the noise and providing data-driven insights.”

“But AI technology was available only for hedge funds and elite investors. It was time to change that and bring its analytical power to every investor in the world. That’s why we founded Danelfin,” says Aarón Román, co-founder and Chief Data Scientist of Danelfin.

The behaviour of stock prices in financial markets constitutes an analytical challenge that is difficult for traditional stock analysis models to tackle. To overcome this difficulty, Danelfin's artificial intelligence models identify behaviour patterns, analysing all the historical and current information available in the market, including more than 10,000 daily fundamental, technical, and sentiment features for every stock and ETF.

“The benefits of artificial intelligence technology were available in the investment industry only for a privileged few. Not anymore,” says Guillermo Salas, Chief Technology Officer of Danelfin. “60,000 retail investors have already created an account in Danelfin to make smart data-driven investment decisions.”

Jordi Viñas, General Partner at Nauta Capital, stated, "Danelfin stood out due to the experienced team, their unique use of AI to democratise informed decisions for picking stocks, and its traction in a growing market. Most of the company’s growth to date is organic through SEO and virality. Considering the volume of stock related searches continues to grow we consider the market to be full of potential. Ultimately, Danelfin is a prosumer, rather than a consumer play, where retail investors pay for a subscription that helps them obtain positive returns on their investments.”

Danelfin was launched in 2021 to democratise the use of artificial intelligence to help everyone make better investment decisions. Winner of the Best Financial Research Company at the 2023 Benzinga Fintech Awards, Danelfin offers easy-to-understand predictive ratings for all US-listed stocks/ETFs and all European stocks that are part of the STOXX Europe 600 index. The funding will support Danelfin's plans for growth, product development, international localization, and operations.

Comments: (0)