A valuation algorithm devised by a founder of Edinburgh boutique fund manager Amati Global Investors has hit an early sales milestone as it bids to transform how private companies are valued.
MarktoMarket has signed its 20th customer following the launch of its private company valuation platform in September 2018.
The product originates from Douglas Lawson's own experiences of the difficulties in finding reliable data points for company valuation at Amati Global Investors, which invested in AIM-listed and venture capital fund businesses.
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Lawson, the co-founder and chief executive officer, Martin Clarke and Bertie Wilson tackled the challenge and founded the company in 2017 based in Edinburgh’s Codebase.
MarktoMarket gives customers insight into price movements in private markets by combining its proprietary dataset with data from customers, enabling the creation of sector and size-based indices. MTM uses machine learning to identify and sort transaction data and other hidden intelligence in UK private markets.
Currently, MTM’s platform is used by leading UK investors and advisers to generate valuation outputs in a fraction of the time of traditional methods.
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Lawson said: “We are very proud to have signed our 20th customer in such a short space of time. It is testament to the talent of our team that we have built a product that resonates so well with our customer base. We are now superbly positioned to provide our customers with new products, which will offer deeper insight into private capital markets.”
Jamie Coleman, co-founder and chair at Codebase, said: “The ability to understand the genuine value of a private company has been the holy grail of investors worldwide. It has been a pleasure to incubate Mark to Market within CodeBase as they have built this solution and grown.’’
