AlphaSense, a New York-based AI-driven market intelligence and search platform, raised $650 million in funding, which values it at $4 billion. This round follows a $150 million raise in 2023 that valued the company at $2.5 billion.
The latest fundraise was co-led by investment firm Viking Global Investors and American merchant bank BDT & MSD Partners, with participation from new investors J.P. Morgan Growth Equity Partners, SoftBank Vision Fund 2, Blue Owl, Alkeon Capital (which invested in Veriff and Harness), and existing investors Alphabet Inc.’s CapitalG (that backed Whatnot and Lummo) and Goldman Sachs Alternatives.
Acquisition of Tegus
The company also agreed to buy rival firm Tegus in a deal valued at $930 million. The transaction is expected to close in the third quarter of 2024.
Tegus provides expert research, unique private company content, and financial data and workflow tools. This transaction will bring its breadth of private company data to AlphaSense’s platform, further delivering on the companies’ shared mission to empower business and financial professionals to make smarter decisions through AI-driven market intelligence.
Currently, Tegus has a fast-growing library of high-quality expert research, which includes coverage of over 35,000 public and private companies across TMT, consumer goods, energy and life sciences sectors. Its financial data offering, which includes financials, KPIs, and fully drivable models on more than 4,000 public companies, as well as its BamSEC self-serve solution to search and access securities filings, adds new and unique offerings to AlphaSense’s extensive product suite and datasets.
Users of Tegus will benefit from the addition of this content with AlphaSense’s market-leading AI and search capabilities, enabling its combined user base to continue easily extracting proprietary insights.
“This transaction marks a pivotal moment for AlphaSense in our mission to help businesses and investors make better decisions with confidence and speed,” said Jack Kokko, CEO and Founder at AlphaSense. “I am thrilled to join forces with the Tegus team as a significant leap forward in furthering our mission, adding top-quality content on public and private companies, and enhancing our ability to deliver even more comprehensive insights to our customers around the world.”
Michael Elnick, Co-Founder and Co-CEO at Tegus, said, “This is a significant moment for Tegus. For nearly a decade we’ve worked to transform how companies and investors conduct research. By joining forces with AlphaSense, we’re going to empower clients in new and more powerful ways. AlphaSense and Tegus are like-minded companies, with a shared vision, and I couldn’t be more excited to continue pursuing our mission of modernising research for businesses, together.”
AI-powered market intelligence
AlphaSense was founded Jack Kokko & Raj Neervannan in 2011 in New York. leveraging proprietary search technology powered by AI and NLP (Natural Language Processing) to help professionals make smarter business decisions by delivering insights drawn from an extensive universe of public and private content including news, event transcripts, company filings, expert call transcripts, trade journals, and equity research.
While consumer-centric generative AI models such as OpenAI’s ChatGPT and Bard are designed to serve general purpose audiences, AlphaSense’s models combine strategic data points from both public and private analytics with a machine learning pipeline. This allows AlphaSense’s platform to offer deep insights into business and finance analytics and provide actionable intelligence. This way, professionals can better make critical decisions with confidence and speed, and improves business performance and outcomes.
Currently, AlphaSense employs over 1,000 people across offices in the US, the UK, Finland, Germany, and India.
Achievements
This announcement follows a series of recent company milestones for AlphaSense, including being named to the 2024 CNBC Disruptor 50 list, exceeding $200 million in ARR and doubling revenue in less than two years, and the opening of a new Singapore hub to fuel expansion in the APAC region.
What do we think about this deal?
Together, it is expected that AlphaSense and Tegus will accelerate growth, innovation, and content expansion, bringing their complementary product and content capabilities together to enable users to unearth even more comprehensive insights from thousands of content sets.
