Cognitive Credit, the global leader in data and analytics software for corporate credit markets, today announces that it has closed its latest funding round in 2Q24, a $10mm Series B raise led by ETFS Capital, with existing investor XTX Ventures also participating.The Company will use the funding to expand into additional markets and continue enhancing its product offering, investing in algorithmic debt valuation and AI solutions for institutional investors.
Cognitive Credit counts the world’s leading asset managers, hedge funds, and investment banks as clients, including 100% of the top 10 global high yield league table banks. This Series B round brings the total amount of capital raised by Cognitive Credit to $25mm. Since its Series A capital raise in late 2021, the company has quadrupled its client base, more than doubled its internal team size, and increased ARR by over 7x.
This growth is driven by the ongoing digitalization of corporate credit. At over $10 trillion, corporate credit is one of the world’s largest investment markets, yet historically credit analysis has been a specialist domain overlooked by the major financial technology providers. With investment firms seeking greater operational efficiencies and competitive edge via technological innovation, and systematic trading strategies taking hold in the space, there has been a surge in demand for timely and accurate structured data in the credit industry in recent years.
Robert Slater, CEO and Founder of Cognitive Credit, said: "With the digital evolution of credit now inevitable, we are pleased to have ETFS join our team given their deep experience in capital markets innovation. Building the best-in-class dataset for one of the world’s largest asset classes remains an ambitious task, and we are excited about the opportunities ahead of us.”
Martyn James, Managing Partner at ETFS Capital, said, “As global credit markets expand and increasingly transition to electronic trading, data and automation plays a crucial role for investors. Cognitive Credit’s software has best-in-class proprietary data collection capabilities and presents this data in a web-based application which boasts an exceptional suite of functionality. This positions Cognitive Credit as an essential tool for credit investors. The Company's impressive growth to date underscores its potential, especially as it broadens its reach into additional fixed-income sub-categories and further enhances its platform's capabilities and product offering.”
About Cognitive Credit
At Cognitive Credit, we provide the world's leading credit investors with specialist data and analytics to form smarter, faster credit views. We deliver detailed credit models automatically updated within minutes of earnings release, paired with workflow tools that elevate your productivity and empower your team to develop more actionable investment ideas – quicker than ever before.
For an ever-growing coverage universe, now spanning US and European Investment Grade Bond, High Yield Bond, and Leveraged Loan markets, our technology is built for credit professionals, by credit professionals. With Cognitive Credit, Asset Managers can better manage their investment portfolios, Hedge Funds can capture more opportunities, Sales and Trading Teams can react faster to new information, and Commercial Banks can more effectively manage their balance sheet risk.
For more information, please visit www.cognitivecredit.com
About ETFS Capital
Founded in 2018, ETFS Capital is a London-based global venture capital firm investing in businesses operating in capital markets across the world. What sets ETFS Capital apart is the firm’s foundation, which is built on deep industry knowledge and a philosophy centered on partnering with founders who are seeking to disrupt the industry status quo. With a long history in the investment management and capital markets space, ETFS Capital leverages its networks and experience to provide lasting value that supports long-term relationships.
For more information, please visit www.etfscapital.com
About XTX Ventures
XTX Ventures is the venture capital arm of XTX Markets. It leverages XTX Markets’ deep expertise in machine learning and financial technology to invest in companies where the core technical expertise of XTX Markets can be used to help grow and enhance those businesses. The venture business is split into 2 areas: Ventures (early stage seed to Series A with a focus on machine learning - geography/industry agnostic) and Strategic Investments (any stage with a focus on investments strategic to XTX Markets’ role as a liquidity provider. Typical industries: Capital Markets, Fintech.)
For more information, please visit www.xtxmarkets.com/ventures