As specialist venture investors in capital markets financial technology, Illuminate have been seeking a company that can help address the MiFID II regulatory environment around research while also innovatively addressing the longer-term challenges of information overload on the buy-side. FeedStock satisfies each of these requirements.

FeedStock filters, categorizes and tracks investor research using complex artificial intelligence software, which can be embedded into its clients’ internal systems.

Drawing on state of the art machine learning to filter incoming information, FeedStock categorizes and prioritizes relevant research in a way that is bespoke to the fund manager or analyst. This processed information is contained on a dynamic platform with additional filter, search and evaluation tools, producing unprecedented efficiencies. There are further controls on the system to manage unsolicited research promotions; which are often considered as inducements.

Using multiple data sources, FeedStock automatically calculates all research consumed, accounting for meetings and calls, enabling buy-side institutions to produce defensible, transparent metrics when budgeting and paying for research. The data produced is both quantitative and qualitative ensuring that the research payments are not only accurate, but are also in line with the MiFID II regulations.

FeedStock already has a number of asset managers on the system and its client base continues to grow. As the company expands, it will continue to evaluate additional direct information sources to feed into the FeedStock system.

Charlie Henderson, joint managing director and founder of FeedStock, said:
“It is testament to our growing business that we have received an investment from Illuminate Financial Management. Their in-depth knowledge of the capital markets fintech sector combined with their existing strategic partnerships make them the ideal investor for Feedstock. We look forward to working with their team, to aggressively grow the business.”

“The twin challenges of information overload and MiFID II compliance around research have created both an efficiency problem, and a compliance issue for the buy-side” said Mark Beeston, Founder and Managing Partner of Illuminate Financial Management. “The team at Feedstock have experienced these issues first hand from both buy-side and sell-side and we are excited to be part of their journey as they bring state of the art technology to this key industry challenge” he added.