Joining the race in the sector which has got increasingly competitive is the ambitious Berlin-based deep tech investment boutique Othoz. The company raised €10 million Series A funding to unlock the potential of AI to facilitate the development of quantitative, machine learning (ML) based strategies for investing in capital markets.
Marking a crucial step in the startup’s pioneering journey to establish ML as a key technology in quantitative asset management, the funding was led by growth venture capital investor based in Munich and Vancouver, Acton Capital along with participation of existing investors as well as renowned industry experts.
ML for asset management
Founded in 2017, Othoz is developing quantitative investment strategies based on innovative machine learning technologies. On a mission to map the complex dynamics of influencing variables and interdependencies on capital markets in holistic models, the platform is combining powerful AI with the best practices of capital investing.
The company is already one of the most important drivers for AI-based analysis and decision-making in the asset management industry. Co-founded by Daniel Willmann, Mathias Eitz and Ronald Richter, the entrepreneur and investment expert Peter Oertmann joined the circle of shareholders and the leadership team in 2020.
Reducing human bias on investment
According to Daniel Willmann, Managing Partner and Co-founder of Othoz, there is immense opportunity in reducing human bias on investment decisions and machine learning will shape the future of the financial industry. “Heterogenous data sets and holistic valuation models will allow for new investment approaches and adherence to ESG criteria without compromising on performance,” he said.
Next-gen funds for ESG investing
Offering an ‘end-to-end’ investment decision process, Othoz rolled out its first ML-powered investment funds in 2019. It can implement customised strategies and integrate investor preferences with regards to return, risk management and adherence to Environmental, Social and Corporate Governance (ESG) criteria.
“With algorithms geared towards a substantially enlarged data set, the next generation of funds is here. Given the huge demand, we will increase our spectrum of active ESG-compliant investment strategies over the next few years,” added Mathias Eitz, Co-founder and Managing Partner of Othoz.
The company is also developing ML-powered overlay strategies for the enhancement of index-tracking investment products that will be unveiled in 2022.
Expanding tech platform
Christoph Braun, Managing Partner at Acton Capital said: “Over the next years, the startup will shape the next generation of research and decision-making processes in asset management.”
The fresh funding will be used to further develop the tech platform, expand the team as well as acquire additional partners.