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When a multi-billion business collapses, investors always turn to financial analysts for answers. That has changed. Thanks to the sentiment analysis tools of Israeli-U.S. startup Amenity Analytics, analysts are now timeously alerted to red flags pointing to hidden trends and even fraud so they can anticipate an event that might negatively impact financial markets.
Amenity uses natural language processing (NLP) to help institutional investors, insurance companies, media organizations, and others to rapidly process and comprehend complex text documents and uncover real-time, actionable insights. NLP uses computational techniques to analyze and synthesize natural language and speech.
The startup has just closed a series B funding round of $18 million led by series A fund leader STARR Companies. The deal includes investment from new participant Allstate as well as participation from existing investors Intel Capital and State of Mind Ventures. The company raised $7.6 million in its series A round.
“Some of the most sophisticated minds on Wall Street already trust our technology to uncover insights that give their investment strategies an edge,” commented Nathaniel Storch, CEO of Amenity Analytics in a statement.
Traditionally, investment houses and hedge funds have depended on a whole cast of analysts to scan comments on Twitter, media reports, quarterly earnings statements and transcripts of investor conference calls to lookout for a snippet of information that might be pivotal to the next trading decision.
The problem is, this is a long and tedious process fraught with human error due to the sheer volume of information that must be perused.
Amenity Analytics has automated this process. The goal is to make it easier and faster for analysts to go through all the information and speed up the investment process.
The startup’s cloud-based platform, Amenity Viewer, uses NLP to uncover sentiment, key commentary, and statements that might contain snippets of deception in unstructured data like social media comments, interview and earnings call transcripts, news reports and the like.
Viewer performs a systematic grammatical and contextual analysis to identify the critical indicators and trends that influence markets and investment decisions.
Amenity Analytics’ sentiment analysis tools and NLP applications are effective. Barclays Capital made use of it and concluded that using the sentiment score to decide whether to buy or sell short the shares of certain companies led to an annual return 12.97 percent greater than a benchmark index, reports Bloomberg.
Organizations across a wide range of industries rely on Amenity’s proprietary NLP technology to analyze vast sets of data for crucial investor insights. Amenity Analytics serves hedge funds and Fortune 100 companies and other industry players. High-profile clients include Barclays, Nasdaq, Moody’s, Citi, Evercore, Intel, STARR Companies, and TimeWarner.
The company was founded in 2015 by CEO Nathaniel Storch, a former Wall Street portfolio manager, Prof. Ronen Feldman, an Israeli expert on data mining and the latter’s wife, Hedva Feldman who is responsible for strategic relationships. She is a former software department head at Matrix.
The startup is off to TechDay NYC next month. TechDay NYC is one of the largest events dedicated to startups in the US. The 2018 event attracted 20,000 attendees from all around the world, 400 startups, and 30 accelerators.
At the startup event, Amenity will have the ideal opportunity to put their proprietary NLP application and sentiment analysis tools on display.