Eigen Technologies, the global provider of natural language processing technology, has completed a $37m (£29m) Series B funding round. The round was co-led by Lakestar and Dawn Capital with participation from Temasek and Goldman Sachs Growth Equity.
This brings the total funding raised by Eigen to $55m (£43m) following the company’s Series A round in June 2018, which was co-led by Goldman Sachs and Temasek.
Since closing its Series A round, Eigen has more than doubled its headcount, grown its recurring revenue sixfold, and greatly expanded its client base to include over a quarter of the worlds G-SIB institutions. The investment in the company’s core technical teams has already delivered a significant number of technological advances and product improvements, which were recently unveiled in Eigen 3.0. The release of the new platform allows Eigen to not just serve its traditional big banking clients, but to also effectively offer nimble solutions to targeted use cases for the broader investor community such as hedge funds and asset managers.
The new capital will be used to further accelerate this growth, with significant investments across the company in both its technical and commercial teams. The company will also double down on its commitment to be a truly transatlantic business, with additional senior management roles based out of New York. This will ensure Eigen is well positioned to serve and benefit from both the North American and European markets.
Since its founding by Dr. Lewis Z. Liu and Jonathan Feuer in 2014, Eigen has enabled organizations to turn their qualitative data into a strategic asset that transforms decision making. By automating the extraction of unstructured qualitative data from documents and other text sources, Eigen has empowered its clients to automate the conversion of this previously inaccessible information into easily analyzable structured data. Eigen is unique in that its platform has consistently been benchmarked as the fastest learning and most accurate in the market, enabling it to be used across a wide range of use cases. Eigen’s technology is currently deployed for use cases as diverse as bank capital optimization (RWA), LIBOR repapering, asset-backed securities analysis, portfolio origination, and complex regulatory compliance exercises such as Dodd-Frank, Basel III, and Solvency II.
Co-founder and CEO of Eigen Technologies Dr. Lewis Z. Liu said: “When we founded Eigen five years ago, I wanted build a research-led transatlantic business. Since the Series A we have made great progress by massively scaling the company, expanding our client base, and integrating cutting-edge machine learning techniques into our NLP product. This new round will allow us to supercharge our growth.
80-90% of the enterprise data in the world today is unstructured information such as text, meaning that most organizations are unable to it unlock its value. With continuing economic uncertainty and the ongoing disruption by data-native companies such as Google, Tencent, and Amazon the imperative to be able to leverage this data is stronger than ever. The new funding will enable Eigen to further its core mission by unlocking the value of our clients’ qualitative data. This will be underpinned by another big investment in our science team, which will double in size so that we can continue to stay at the forefront of machine learning research.”
Partner and Chief Technology Officer of Lakestar Stephen Nundy said: “Having known Lewis and the team at Eigen for many years, and seeing first-hand their best-in-class technology establish itself as a true market leader across financial services, we at Lakestar are immensely proud to be able to lead this European-based, but globally focused team, to their next stage of supercharged expansion with this strong round of funding.
Eigen’s proven ability to accurately, and at scale, answer deep questions posed on complex use cases, such as asset-backed securities documentation i.e. CLOs is remarkable.
As Eigen’s usage grows across finance and then into other business verticals such as insurance, legal, regulatory, and healthcare, we will see more impactful business value use cases for NLP data extraction, at complexity levels previously thought to be out of reach.”
Principal at Dawn Capital Mina Mutafchieva said: “Eigen’s technology is a complete game-changer for enterprises allowing them to unlock the value of their unstructured textual data at scale. It's no surprise that the world’s leading financial institutions have flocked to the platform. What particularly impressed us about Eigen was the combination of a cutting-edge, value-adding technology and a seasoned management team with a highly successful track record. We look forward to supporting Lewis and his team as they continue their successful expansion into the financial services sector and move to address use cases in other verticals. It's also a textbook Dawn investment, where we're backing a pioneering B2B company at the beginning of its scaling journey.”
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