Synthera, a UK fintech startup focusing on the use of synthetic data to address challenges in financial risk management, has raised €1.7 million in a pre-seed funding round.
Led by Motive Ventures, the round attracted notable investors, including Entrepreneur First, Transpose Platform, KDX, BuenTrip Ventures, Robin Capital, Angel Invest, and prominent angel investors from the financial sector.
“By bridging the gaps in traditional approaches, Synthera provides financial institutions with the tools to anticipate and navigate market complexities in ways that weren’t possible before,” said Mariana Barona, Co-Founder and CEO of Synthera. “This fresh funding allows us to bring our solution to market and help investment teams unlock better, data-driven decisions.”
Founded in 2024, Synthera aims to transform how financial institutions analyse market risk by addressing the limitations of traditional tools like Monte Carlo simulations and historical data models. According to Synthera, these conventional approaches often fail to capture dynamic market shifts and non-linear correlations, leaving investors exposed to unforeseen risks.
The company’s technology generates realistic market scenarios for a variety of financial instruments, including equities, fixed income, commodities, and foreign exchange. By leveraging synthetic data, Synthera enables firms to identify tail risks, uncover non-linear patterns, and perform backtests across thousands of unseen trajectories, offering a robust alternative to static historical datasets.
Michael Hock, Partner at Motive Ventures, underscored the importance of Synthera’s solution: “Synthera is solving a fundamental problem in the financial industry: the inability of historical data and traditional models to account for the realities of today’s markets. By leveraging cutting-edge generative AI, they are creating a product that addresses a critical need for financial institutions looking to improve risk management and portfolio outcomes. We’re proud to back such a visionary team.”
The funds will be used to accelerate product development, grow Synthera’s engineering and data science team, and collaborate with leading financial institutions to pilot its technology. The company aims to serve a wide range of clients, including hedge funds, asset managers, pension funds, and banks.
Read the orginal article: https://www.eu-startups.com/2024/12/london-based-synthera-secures-e1-7-million-to-develop-financial-risk-management-with-generative-ai/
