HedgeSPA

wealthtech-retailfinancial research

FOUNDING YEAR: 2011
LOCATION: Singapore
Last Update: 08/09/2020

Subscribe to the MEDICI Inner Circle Membership and gain access to an exclusive WhatsApp community where you can engage in discussions with global industry experts!

About

Highlighted by Forbes as an emerging disruptor in financial technology, winners of or shortlisted by multiple global FinTech awards, and covered by media outlets from BBC to Waters Technology, HedgeSPA is abbreviation for “Sophisticated Predictive Analytics for Hedge Funds and Institutions”. Since our founding in 2011 thanks to circa S$1m in R&D grants awarded by the Singapore Government, the team has been on a mission to redefine professional asset management by democratizing access to advanced investment analytics. Its one-of-a-kind and game-changing industry cloud platform offers global asset managers the sophisticated analytics tools and front-to-back-office support they need in order to be competitive against the largest global asset managers, which use similar analytics to create artificial barriers to market entry. From asset selection to portfolio rebalancing to execution and reporting, the HedgeSPA Core Investment Platform offers powerful and insightful functionalities to professional investors — at a fraction of the cost of competitor platforms.

MEDICI Analysis

HedgeSPA provides cloud-based platform that addresses many day-to-day investment analytics and support issues.

Focus

PRODUCTS & SERVICES

Investment Analytics Index/Basket

REVENUE MODEL

1. Subscription-based model for use of the analytics platform; 2. Customary management fee & performance fee models for index licensing

EXISTING PARTNERSHIPS

SPRING Singapore

iDA Singapore

PRIMARY PROBLEM SOLVED

Today, a professional asset manager wishing to gain access to a proven investment analytics platform will face these challenges: a) exorbitant pricing, up to 7 to 8 figures per year; b) high implementation risk; c) quarter-century-old technology, with reports in outdated FORTRAN format; d) waiting hours or even overnight for critical, time-sensitive investment analyses; and e) refusal by exclusive providers to sell to anyone perceived as a threat in asset management. Our powerful analytics platform was created by founders and team members who have run real-life investment products and therefore understand the many subtle issues that institutional investors face. Our technology was built from the ground up to directly address these issues. We protect our IP using trade secrets instead of patents which has a miserable record of protecting any IP on Wall Street.

INTELLECTUAL PROPERTY

Patent(s) NOT_FILED

company provided insights

Traction

REVENUE

$100k - $499k

REVENUE COMMENT:

We have signed NDAs with practically every one of our users (including those in preliminary discussions). Our technology works in such a way that, with a client CSS, an end investor may be using our analytics from a financial institution's investor portal without knowing that our platform is driving the technology behind the scene. Thus, any discussion related to client names and client data is highly sensitive and potentially restricted by regulations; even our existing shareholders must sign NDAs.

ACTIVE USERS:

10+

People

FOUNDERS

Bernard Lee

Chin Hock Kua

Chin Hock Kua

BOARD MEMBERS AND ADVISORS

Dr. Simon Christofides

Mr. Galen Murphy

Bernard Lee

NUMBER OF EMPLOYEES

11-50

company provided insights

Momentum

FUNDED

NO

LISTED

NO

Innovation Programs

Join the exclusive global FinTech community

Be a part of the global FinTech community on WhatsApp

HedgeSPA

About

Highlighted by Forbes as an emerging disruptor in financial technology, winners of or shortlisted by multiple global FinTech awards, and covered by media outlets from BBC to Waters Technology, HedgeSPA is abbreviation for “Sophisticated Predictive Analytics for Hedge Funds and Institutions”. Since our founding in 2011 thanks to circa S$1m in R&D grants awarded by the Singapore Government, the team has been on a mission to redefine professional asset management by democratizing access to advanced investment analytics. Its one-of-a-kind and game-changing industry cloud platform offers global asset managers the sophisticated analytics tools and front-to-back-office support they need in order to be competitive against the largest global asset managers, which use similar analytics to create artificial barriers to market entry. From asset selection to portfolio rebalancing to execution and reporting, the HedgeSPA Core Investment Platform offers powerful and insightful functionalities to professional investors — at a fraction of the cost of competitor platforms.

Focus

PRODUCTS & SERVICES

1) Investment Analytics 2) Index/Basket Investment Products

REVENUE MODEL

1. Subscription-based model for use of the analytics platform; 2. Customary management fee & performance fee models for index licensing

TOP PROBLEM SOLVED

Today, a professional asset manager wishing to gain access to a proven investment analytics platform will face these challenges: a) exorbitant pricing, up to 7 to 8 figures per year; b) high implementation risk; c) quarter-century-old technology, with reports in outdated FORTRAN format; d) waiting hours or even overnight for critical, time-sensitive investment analyses; and e) refusal by exclusive providers to sell to anyone perceived as a threat in asset management. Our powerful analytics platform was created by founders and team members who have run real-life investment products and therefore understand the many subtle issues that institutional investors face. Our technology was built from the ground up to directly address these issues. We protect our IP using trade secrets instead of patents which has a miserable record of protecting any IP on Wall Street.

PRODUCT DEVELOPMENT STAGE

V2.0 or BEYOND

PRODUCT DEVELOPMENT COMMENT

Most of our major upgrades from the last 12 months, and in the foreseeable future, have been technology focused. We scale the platform and simplify the process for a significant number of professional investors to adopt our solution: 1. The platform is now using a OAUTH-based single sign-on (SSO) server as a security gateway, with the ability to redirect users to wherever a virtual machine is hosted, which can be a private server, hybrid cloud or public cloud such as Amazon Web Services (AWS). This is important to many professional investors, especially those in Asia because they tend to be smaller operations and do not have large in-house data centers. 2. Accordingly, all the permissioning (including data) can be done from the SSO. This is critical to professional investors because certain data vendors and exchanges are known to permission one group of time series at a time for each user. 3. We are upgrading the front-end user interface to extREACT, the super-fast UI interface from Facebook and Instagram. This is helpful to professional investors for two reasons: a) they often have to run through thousands of approved investment products so the “rendering” of a list with more than 1000 instruments must be reasonably quick; b) professional investors do not want to spend significant time learning how to navigate any application. With the much faster UI, professional investors can now go from our “dashboard” (home page of the application, highlighting all major issues) to the more detailed analysis with a single click, without having to learn to navigate the application. This will be key to successful deployment for professional investors because of the typical umber of approved investment products involved and complexity of investment analytics calculations. 4. Our upstream data can be sourced from any client-approved provider with commonly accepted formats (CSV, XML, API), and we also crawl data for our clients from all publicly available sources, such as the US Securities and Exchange Commission EDGAR database. 5. Our downstream outputs can be sent as FIX trades directly to the dealing desks or custodians, or whichever format the client prefers, and we cam also automate all our daily reporting as a text email with simple but highly effective summary spreadsheets for our clients. Our platform can process trade confirmations as well as reconcile any transactions daily and automatically.

KEY DIFFERENTIATORS

1. Proven and highly-customizable factor selection tools (using all available data ranging from fundamental data to company financials to economic data to news/social media sentiment scores) to guide the search of alpha; 2. Native tail-risk-enhanced investment analytics (important to multi-asset, global portfolios due to high tail risk); 3. Native multi-asset, multi-frequency support (important to multi-asset, portfolios since many of the components are reported based on irregular frequencies); 4. Scalable multi-tenant, security-hardened delivery on the cloud, or via virtualized local installations that preserves performance and allows convenient access by professional investor users; 5. Professional-grade user interface designed and built by senior trading professionals with deep investment domain expertise; 6. Content updated with frequently-cited market research, including top-ranked pieces on Google Search and frequently cited geopolitical research with significant global market implications (example: https://www.hedgespa.com/2017/07/13/mideast/); and 7. Combining content, price and delivery advantages of a front-to-back platform that stands out among highly fragmented competitors offering component-driven solutions in investment analytics space.

PRIMARY CUSTOMER TYPE

Enterprise - Banks or Financial Institutions

PRODUCT ATTRIBUTES

SaaS

On-premises

White label

Traction

ANNUAL REVENUE:

$100k - $499k

REVENUE COMMENT:

We have signed NDAs with practically every one of our users (including those in preliminary discussions). Our technology works in such a way that, with a client CSS, an end investor may be using our analytics from a financial institution's investor portal without knowing that our platform is driving the technology behind the scene. Thus, any discussion related to client names and client data is highly sensitive and potentially restricted by regulations; even our existing shareholders must sign NDAs.

ACTIVE USERS/ACCOUNTS:

10+ Million

LIVE USERS/TRANSACTIONS:

Yes, in live production

CHANNEL STATUS

MULTIPLE CHANNELS

People

NUMBER OF EMPLOYEES

11-50

TEAM COMMENT:

1. Founder,CEO - Bernard Lee, PhD, CFA, was an award-winning managing director at BlackRock. As part of its portfolio management group in New York, Dr. Lee put his PhD thesis in quantitative finance into practice. Consequently, he won a FinTech industry award on that implementation, which BlackRock sold to its top customers to analyze full portfolios including assets not managed by BlackRock. Thanks to generous R&D grants awarded by the Singapore Government, Dr. Lee has updated,moved these analytics to the cloud. 2. Co-Founder,Head of Engineering - C.H. Kua, PhD, is an accomplished scientist as well as former trader,market maker. He obtained his PhD from an MIT joint program in Singapore. Dr. Lee,Dr. Kua have been working together for 5 years. 3. The Team is known for its ability to attract top talents from the likes of Berkeley, Caltech, Columbia, Carnegie-Mellon,Princeton,,we have active R&D collaboration with Imperial College London,the Chinese University of Hong Kong. 4. Our Advisory Board is composed of individuals with highly impressive CVs (e.g. Cambridge PhD, former senior professionals at Goldman Sachs,Swiss banks.)

BOARD MEMBERS AND ADVISORS:

Eddie Chau, Bernard Lee

Momentum

FUNDED

YES

FUNDING COMPLETED

NO

LISTED

NO

FUNDING SERIES
Seed
Oct 2016
USD400 K
at a USD10 Mvaluation
Comment on Seed
Our investors are all senior, global banking and finance professionals who can open doors and facilitate senior-level introductions. We have raised only the minimum amount S$ 0.5M as required because this round was specified in our contract from our earlier Singapore Govn't grant funding (totally circa S$ 1m in cash grants + in-kind, along with required founder matching of circa S$ 0.5m). Singapore is 6% post-money. We would have to issue more stocks to Singapore if we had raised more than what was required for the seed round. Thus, there was no economic incentive to raise more than the minimum amount.

Comment on Valuation

Last known valuation on investment document