Toronto-based FinTech startup Delphia has acquired a United States company to increase the overall transparency of its algorithm-based investment advisor services.
On Thursday, Delphia announced that it had completed its acquisition of New York-headquartered Fathom Privacy, a data rights company that packages data collected from consenting users into an easy-to-interpret format to streamline data sharing across apps.
This technology, according to Delphia, will enable contributors to oversee what data is accessed and how it’s used, providing Delphia’s community of users with greater control and ownership over the data it shares, while maximizing their return potential.
“The acquisition is the latest step in our mission to revolutionize investing through ethical data use.”
– Andrew Peek, CEO of Delphia
Spun out of public opinion research company Vox Pop Labs in 2018, Delphia provides an investment platform driven by artificial intelligence (AI) that it touts as a way to forecast the growth and profitability of publicly-traded companies, up to seven quarters into the future.
Delphia’s overall aim is to level the playing field between institutional and retail investors through its use of consumer spending insights, employment patterns, and public opinion data from social media. It does this through algorithmic models that the company claims were previously exclusive to top-performing hedge funds.
The investment strategies offered by Delphia use an AI application that is trained on both financial and consumer data. To this end, Delphia relies on its community to willingly share their personal data in order to create a proprietary data set that can lead to greater predictive capabilities.
According to Delphia, its acquisition of Fathom closed in October, and expects Fathom’s platform to be fully integrated by the end of this year.
“The acquisition is the latest step in our mission to revolutionize investing through ethical data use and give our community access to hedge fund-grade investment strategies,” said Andrew Peek, CEO of Delphia. “We think the Fathom acquisition and the features it brings, will further incentivize data contribution which, in turn, will improve our stock selection AI.”
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Delphia also noted that the integration of Fathom’s technology will play a key role in the former’s ability to access and interpret data that isn’t available to other hedge funds for purchase.
One aspect of Delphia’s investment platform includes crypto, and though the market remains volatile, the startup remains interested in the crypto space. In September, Delphia launched its rewards program wherein users can receive Delphia’s phi token (PHI) for being active in Delphia’s data-sharing ecosystem, like weighing in on topics related to current events and market trends. Users earn rewards based on the accuracy of their posted predictions. The more accurate it is, the more PHI tokens they can earn.
Earlier this year, Delphia closed a $75.2 million CAD all-equity Series A round led by crypto fund Multicoin Capital, with participation from the likes of Sam Bankman-Fried’s FTX Ventures and Web3-focused investment firm M13.
FTX has since gone under, and there have been questions about how its bankruptcy will affect its investments in, and ties to, a number of Canadian tech companies.
Featured image courtesy Delphia.