Daloopa closed on a $20 million Series A round, led by Credit Suisse Asset Management’s NEXT Investors, to continue developing its data extraction technology for financial institutions, which is now being expanded globally.
When company co-founder and CEO Thomas Li worked as a hedge fund analyst, he often performed repetitive data extraction in order to gather insights for analysis and forecasts.
In fact, he found lawyers and similar financial professionals at financial institutions were spending about a third of their time on those same tasks, while also manually entering everything into spreadsheets.
“This was a big enough problem for one company to support all of the data analysis and forecasting without having to manually convert the data,” Li told TechCrunch. “This frees up analysts to then do what they are supposed to do.”
The idea for Daloopa came to Li five years ago, but he said the data extraction technology was not in place to get it off the ground. Then in 2019, the state of technology was such that Li and co-founders Daniel Chen and Jeremy Huang could create data extraction capabilities through the use of artificial intelligence-driven software. Customers can request data sets with a couple of clicks of a button and have it delivered the next day.
Accuracy in financial data collection “is mission critical,” but artificial intelligence models aren’t often able to get to 99% accuracy, whereas Daloopa is able to surpass that, Li said. Latency and volume also need to be at a point where infrastructure can support the algorithms needed to gather data from thousands of different documents.
Joining Credit Suisse in the Series A were existing investors Nexus Venture Partners, Uncorrelated Ventures and Hack VC. Daloopa previously raised both 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 Daloopa’s board of directors.
“Daloopa is disrupting how financial data is extracted and consumed,” said Abhishek Sharma, managing director at Nexus Venture Partners, via email. Nexus led both the pre-seed and seed rounds into the company. “Its intelligent automation approach eliminates the cost bloat and makes data extraction scalable, accurate and referenceable.”
Meanwhile, the company will use the new funding on R&D for product development, hiring additional staff members and building out the tech stack for those people to work on. It will also focus on sales, marketing and operations functions.
Li did not disclose revenue metrics, but said Daloopa self-launched its product six months ago, and today has 40 enterprise customers. It is headquartered in New York with offices in New Delhi and Rio de Janeiro.
Initially, Daloopa focused on public company financials, but plans to move into data extraction for more private documents, like documents a bank uses with its customers.
https://ift.tt/eA8V8J Credit Suisse leads $20M Series A in data extraction startup Daloopa https://ift.tt/3B6gwoZ
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