MDOTM, a platform that provides investment advice using artificial intelligence (AI), has raised €6.2 million in Series B fundraising. Both institutions and individual investors participated in the funding round. Investors include Federico Ghizzoni, Chairman of Rothschild Italy and former CEO of UniCredit; Lorenzo Pagani, Managing Director at PIMCO; and Alberto Zaffignani, Managing Director and Head of Global Markets Italy at Natixis. Zaffignani also joins MDOTM as a non-executive board member.
The company’s technology seeks to exploit changes in market inertia and risk premium, using deep learning techniques to continuously analyze millions of market data points.
According to a note from the company, the funding will be used to fuel MDOTM’s international expansion, double the size of its teams in London and Milan, and enable the company to open a new office in the US.
MDTOM was started in London by Tommaso Migliore and Federico Mazzorin in 20215. The firm’s goal is to use AI to support the investment decisions of asset owners and asset managers. The company, which raised €2 million of Series A funding in 2018, now has a team of over 30 physicists, engineers, data scientists and finance experts.
Currently, MDOTM reports over €750 million in Assets under Advisory (AuA). Currently, its AI-driven strategies are said to be in use by banks, asset and wealth managers, pension funds, insurance companies, and family offices.
MDOTM is the only European Fintech company to have been selected by Google to participate in its acceleration program. It is also the winner of NTT DATA’s Open Innovation competition.
In 2021, MDOTM’s ALICE technology – ‘Adaptive Learning In Complex Environments’ – was awarded ‘Asset Management Innovation of the Year’ by AIFiN.
CEO Migliore commented on the funding round:
“We founded MDOTM to bring the benefits of Artificial Intelligence to asset managers and asset owners. AI is revolutionizing how investment decisions are made, and the future of asset management will be shaped by collaboration between fintechs and financial institutions. With the support of the many high-profile and experienced investors who participated in our latest fundraising, MDOTM is in a very good position to lead the sector, expand internationally and continue its rapid growth.”
Zaffignani said that growing number of asset managers are looking to AI technology to enhance their investment decision-making and processes.
“MDOTM’s cutting-edge solutions already support many large financial institutions and the company is the European leader in AI-driven investment strategies. I’m delighted to support MDOTM’s young, bold and motivated team as the company embarks on the next phase of its growth.”