July 23--Israeli start-up company TipRanks, which offers a platform for receiving analysts' stock recommendations ranked according to their performance, recently closed Round A with $3 million. Among the backers is former New York State Governor Eliot Spitzer, who earned his nickname the "Sheriff of Wall Street" for going after corrupt financiers when he was New York State's Attorney General. Spitzer served as Governor of New York State in 2006-2008, but was forced to resign in the wake of a sex scandal. Other investors include Cornell professor, Roni Michaely, and angel investor, John Nakamura.
TipRanks was founded in June of 2012 with $700,000 seed money by Uri Gruenbaum, CEO, and Gilad Gad, CTO, as a resource for investors after the two realized that there is not enough public information available on the track records of experts providing financial advice online, so that investors do not know whose advice to trust.
TipRanks ranks over 6,500 analysts and bloggers on the basis of their success rate of financial advice, average return, and consistency. It uses machine learning and natural language processing algorithms (NLP) to analyze the Internet and measure the performance of anyone giving investment advice online on leading financial blogs and websites. Among its users are financial institutions all over the world, including leading Israeli banks Bank Hapoalim and Bank Leumi.
"TipRanks was created because there is a lot of bad advice making the rounds in top financial publications," Uri Gruenbaum, CEO of TipRanks explained, "Let's face it, not all analysts are created equal. By scanning leading financing websites for analyst recommendations, TipRanks is able to provide it's users relevant information regarding the analyst's performance history so that they can make informed financial decisions."
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