What is your revenue model? How will the company make money?
Subscription to the algorithmic forecasts is covered by a fixed fee, which depends on the subscription level (prediction universe size) and customization needed.
The Tier 2 service is offered on a revenue sharing model, meaning we agree with partners on splitting the management and fund performance fees.
Who is your target market? How big is the opportunity?
Our target market is all retail and institutional investors who want to benefit from the advancements of artificial intelligence technology applied to capital markets but do not possess in-house capabilities and resources to develop and maintain this type of complex modeling and forecasting systems. This can be private investors, family offices but also hedge funds, other asset managers, and banks—we work with all kinds of investors and advisors.
Since the system is easily scalable, the solutions are relevant for virtually any liquid stock market. Having already a strong presence in the U.S., our current growth plans include entering new markets in East Asia as well as further grow our brand in Europe where we already have clients since last year.
East Asia Japan and China present very interesting opportunities since both belong to the largest capital markets in the world. Important to note, that specifically, the Chinese retail investors are the largest and the most active trading community in the world with more than 200 million of individual accounts and at least 50% higher trading activity than their peers from the United States.
Why are you and your team capable of succeeding?
Most importantly, we rely on and benefit from the expertise of our highly experienced R&D team headed by the CTO and Co-Founder Dr. Lipa Roitman. Lipa holds Ph.D. from the Weizmann Institute of Science and is active in the AI field for more than 30 years now. I Know First’s unique R&D group consists of Ph.D.’s and AI and Machine Learning experts, including IDF intelligence veterans, and consults with Prof. Yakov Yakubov from Tel Aviv University.
Further, I Know First’s strong global network of analysts and local representatives contributes immensely to the development of our business activities across the continents.
What is your company’s next target/milestone?
Businesswise: Entering first Asian markets and developing and training a custom system for the Euronext in 2017 as well as grow on the money management side. Technology-wise: we are working hard on developing additional independent forecasting models and significantly increasing the computing performance of our systems.
Can you tell us one unusual fact about your company?
The groundwork for I Know First was laid decades ago and far aside from the financial markets. Prior to founding, I Know First, Dr. Lipa Roitman was obsessed with searching for and finding order in highly complex and even seemingly random chemical processes. Now he’s very happy to continue applying his extensive AI knowledge by studying the chaotic nature of the capital markets.