Domeyard Raises Series C Funding
To Drive High-Frequency Trading
February 7, 2017
BOSTON, MA - Domeyard, a startup pioneering the use of artifical intelligence for extremely time-sensitive applications, announced the initial close of its Series C funding from a group of investors which includes a founder of Renaissance Technologies. The capital will be used to accelerate Domeyard's deployment of its high-frequency trading models to new markets worldwide. Domeyard's total funding remains undisclosed - the round is expected to fully close in April, 2017. Its Series A was led by Gary Bergstrom, founder of Acadian Asset Management, and its Series B was led by Renren, Inc. (NYSE: RENN).
Domeyard employs a significant set of proprietary technologies to perform predictions with remarkable speed and accuracy. These include a simulation cluster that processes trillions of data points daily to uncover sparse signals, an internal database that tracks unstructured reference data for millions of securities, network hardware with scalable throughput at petabyte scale storage capacity, and proprietary algorithms that make predictions with sub-microsecond latency.
The first application of Domeyard's technology is towards high-frequency trading. “We saw a lasting way to differentiate ourselves because we have a unique means to take machine learning to the latency frontier. Many of the fastest trading firms are still using naive signals, while firms claiming to employ AI are mostly using commoditized models and slow software,” said Jonathan Wang, CTO of Domeyard. “We take mathematical models that are thought to be too complex for low latency trading and find novel ways to reinvent them for fast execution. Another firm may have equipment that's nanoseconds faster than ours, but we're picking up signals well ahead of them. At the same time, our predictions can be considerably more accurate than those of conventional AI models because the latter are designed for non-realtime use, which is unsuitable for high-speed trading.”
Howard Morgan, co-founder of Renaissance Technologies and First Round Capital, will join the firm's advisory board. “I'm always attracted to strong technologists who can apply[...] mathematical methods, while keeping their emotions out of the models,” said Mr. Morgan. “Domeyard's strong team and powerful early results seem really promising.”
“We are delighted to add a very successful team of investors who share our passion for data science,” said Christina Qi, co-founder of Domeyard. “We are pushing the boundaries of modern computing. It’s a highly competitive space, but being able to update predictions near the physical limits of light will yield tremendous benefits in all industries.”
The Series C comes weeks after Domeyard was awarded “Most Innovative Emerging Manager” at the 2017 AI Hedge Fund Awards, sponsored by BarclayHedge. Domeyard's most recent development has been the rollout of its equity index arbitrage strategy, which has reached a daily trading volume of nearly $100 million. Its hedge fund vehicle is already expected to be closed to new investors this year to give priority to existing and Series C investors, who have agreed to invest further into Domeyard's portfolio.
Domeyard is focused on pushing the latency limits of artificial intelligence for time-sensitive applications such as high-frequency trading. The firm was founded in May 2014, bringing together years of computer science and biostatistics research at MIT and Harvard. Domeyard collects terabytes of new data daily, a feat made possible by its proprietary software, distributed cluster and innovative network storage design. Its trading platform is designed to make intelligent decisions on every event in a high-speed environment with millions of incoming data points per second. Domeyard manages a quantitative hedge fund with high-frequency strategies derived from these technologies and is registered with the CFTC as a Commodity Trading Advisor and Commodity Pool Operator.
Domeyard's employees bring technical experience from firms such as Virtu Financial, PDT Partners, Apple, and Lime Brokerage. Nearly half of its engineers hold patents in network technology, computer architecture and compiler design.
For more information about Domeyard, please visit www.domeyard.com.