MDOTM is a fintech company that develops AI-driven investment strategies. Its clients, which are exclusively financial institutions (Banks, Family Offices, Wealth and Asset Management companies), use MDOTM’s models in their investment decision process within their financial product offering, for proprietary trading, or for managed accounts.
MDOTM has just closed its first funding round raising € 2 million from a combination of institutional investors and finance professionals to fund its international scale-up.
With this transaction, those acquiring an interest in the company are Banca Profilo; the former CEO of Unicredit and current Chairman of Rothschild Italy, Federico Ghizzoni; Alida Carcano, founder of Valeur Asset Management and Bi.Effe, the family office of Fabio Troiani, co-founder and CEO of BIP, one of the largest European consulting firms, and a group of other private investors. The founders Tommaso Migliore and Federico Mazzorin maintain control of the company, with 80% of the capital.
The company stems from the belief that today’s investment world has become a “tech game” and has set itself the challenge of bringing science into the world of investments. In fact, the R&D team starts by researching and studying market anomalies – which are often explained by behavioural finance – and then develops deep neural networks and decision-making algorithms to model and exploit these inefficiencies.
Federico Mazzorin, founder and CTO of MDOTM: “The Internet has democratised access to traditional information and levelled out the asymmetries among the market players. What really counts today is the ability to analyse large amounts of data and being to extract statistically significant information signals from the background noise of the markets” – MDOTM analyses over 2 million data points with its algorithms every day.
MDOTM was the only European fintech startup selected for the Silicon Valley acceleration program powered by Google for Entrepreneurs thanks to its approach to research in the field of Artificial Intelligence.
Tommaso Migliore, founder and CEO of MDOTM, says: “Today banks and asset managers to stay competitive in an increasingly complex market and to respond to the new MIFID directives are actively seeking help for their financial products from specialists.
We work closely with our clients providing them with our systematic models that support them in specific investment areas that nowadays demand state-of-the-art technology.”
Today, it is finally possible to invest with systematic strategies that use Artificial Intelligence thanks to the exponential progress made in computational power, through affordable access to cloud computing, and the latest breakthroughs in the field. MDOTM’s scientific approach relies on these capabilities as it involves analysing large amounts of data, which are necessary for training neural networks.
MDOTM was founded in London in late 2015 by Tommaso Migliore and Federico Mazzorin, graduates in finance and physics respectively and childhood friends. The idea came from a university lecture in which the professor was explaining how to use statistics and quantitative models to invest in the markets. Tommaso started asking questions, but the answers he was given did not go far enough to suppress his curiosity. The very same day, Federico – an experienced programmer with strong statistical skills – became involved and MDOTM was born.
After finding their first client, MDOTM opened an office in Milan and brought into the team the first two researchers from the Faculty of Physics and a large IT company.
Today the team is made of ten people – based between London and Milan – and keeps growing, doubling every year. MDOTM Ltd is an appointed representative of Thornbridge Investment Management LLP which is authorised and regulated by the Financial Conduct Authority.
After the raise, MDOTM has not wasted any time and has already completed a small acquisition that brought on board the team of a software development company specialised in machine learning and natural language processing. The plan is to multiply investments in Research and Development, especially in the field of deep learning for the customisation of proprietary MLP (Multilayer Perceptron) neural networks.