Irish risk management software developers Prediction Dynamics has received E650,000 in first round funding from ACT Venture Capital. Prediction Dynamics is a systematic trading and risk management software company and the investment will enable the company to bring its Crucibleproduct to market later this year.
The product ‘Crucible’ is used to build and maintain a large number of predictive models across a large variety of different financial markets and asset classes. By providing support for market characteristics such as ‘fat tails’, the database of predictions generated by these models can significantly enhance the performance of in-house (or third party) risk management, decision support and systematic trading systems.
Its chief technology Officer, Dr John Carney, founded prediction Dynamics in June 2000. While working in Gaiacorp, a leading European foreign exchange hedge fund, Carney recognized the need for a quantitative approach to financial asset return and volatility prediction, something that has proved extremely difficult in the past.
Prediction Dynamics CEO Paul Donnelly said, ‘We’ve an exciting opportunity to capitalize on the dramatic growth of the hedge fund market. This investment gives us the means to execute on our technology leadership and take full advantage of the sizeable opportunity in this space.’
‘The market for risk management solutions is large and expected to continue to experience rapid growth,’ added Donnelly. ‘Research published by Meridien Research and International Data Corporation shows the risk management market growing from approximately $3.7 billion in 2000 to $6.1 billion in 2005, with the concurrent shift from in-house proprietary systems towards packaged software solutions.’ |
