Electronic broker Instinet has placed a $2 million investment in analyst ratings agency StarMine, closing a $5 million Series D financing round for the privately-held company, in which previous investors American Century Ventures and Hummer Winblad Venture Partners also participated.
Under the agreement, Instinet will become StarMine's preferred soft dollar broker, providing its clients with access to StarMine's research products. The company measures Wall Street equity analysts on their stock-picking performanc and the accuracy of their earnings forecasts.
Doug Atkin, president and CEO of Instinet, comments: "StarMine's objective approach to measuring Wall Street analyst performance and deriving more accurate forecasts for earnings enhances the value of Instinet's brokerage offering to institutional customers."