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Machine learning quant Othoz raises €10 million

Source: Othoz

Deep-tech investment boutique Othoz has closed a €10 million Series A funding round to unlock the potential of artificial intelligence (AI) and further drive the development of quantitative, machine learning (ML) based strategies for investing in capital markets.

ML as key technology for decision making in asset and wealth management
Led by Acton Capital and with participation of existing investors as well as renowned industry experts, the funding round marks a crucial step on Othoz’ pioneering journey to establish ML as a key technology in quantitative asset management. “Machine learning will shape the future of the financial industry. The opportunities by reducing human bias on investment decisions are huge,” explains Daniel Willmann, Managing Partner and Co-founder of Othoz. "The combination of heterogenous data sets and holistic valuation models allows for new investment approaches and adherence to ESG criteria without compromising on performance."

The interdisciplinary team around Daniel Willmann and Mathias Eitz consists of specialists in the fields of finance, computer sciences, mathematics, physics, and neurosciences. In early 2020, Peter Oertmann, entrepreneur and pioneer in quantitative asset management, joined the circle of shareholders and the leadership team. By combining deep tech expertise with long-standing industry experience, the team aims to further drive the application of AI-based solutions for active and passive asset management.

The next generation of funds will meet an increasing demand for ESG investing
Othoz launched its first ML-powered investment funds in 2019. By offering an "end-to-end" investment decision process, Othoz can implement customized strategies and integrate investor preferences with regards to return, risk management and adherence to Environmental, Social and Corporate Governance (ESG) criteria. “The next generation of funds is already in the making. And its algorithms are geared towards a substantially enlarged data set, including sustainability criteria. Given the huge demand, we will increase our spectrum of active ESG-compliant investment strategies over the next few years,” explains Mathias Eitz, Co-founder and Managing Partner of Othoz.

Othoz is also working on ML-powered overlay strategies for the enhancement of index-tracking investment products with plans to launch in 2022. Furthermore, Othoz develops research solutions for the fast-growing online brokerage market making AI-based market insights available to retail investors.

€10 Mio. to expand tech and team
With this round, Othoz underlines its position as technology leader in the fast-growing market segment for quantitative asset management. "The team combines analytical rigor, tech capability and knowledge in bleeding edge technology with relevant experience in the asset management space," says Christoph Braun, Managing Partner at Acton Capital. "Over the next years, Othoz will shape the next generation of research and decision-making processes in asset management," adds Peter Oertmann. The fresh funding will be used to further develop the tech platform, expand the team as well as acquire additional partners.

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