Transforming Finance with AI: Meet Intellibonds

Table of Contents

1. Introduction
2. The Problem Intellibonds is Solving
3. Intellibonds' Products
4. Target Market
5. Revenue Model
6. Intellibonds' Progress
7. What Makes Intellibonds Unique
8. Future Plans
9. The Intellibonds Team
10. Conclusion

Intellibonds: AI in the Fixed Income World

Intellibonds is a VR air augmented SAS platform that helps institutional investors with their investment decision-making process to improve investment returns and reduce costs. The company was founded in 2018 and has been selling its products since 2022. In this article, we will discuss the problem Intellibonds is solving, its products, target market, revenue model, progress, what makes it unique, future plans, and the Intellibonds team.

The Problem Intellibonds is Solving

The problem Intellibonds is solving has multiple angles. One of those angles is that many portfolio managers are unable to run complex portfolio optimizations, especially in the insurance space or pension space, and the time to produce data is extremely long, which often leads to sub-optimal investment decisions or risk decisions. The Second aspect of the problem is that companies ultimately report earnings only once a quarter, and in between, investors are blind and just second-guessing whether everything is all right with the company and whether there is any change in the trade watchiness. Intellibonds is trying to address those problems and have a workflow automation on top of it.

Intellibonds' Products

Intellibonds has created two products: Credit Assist and Portfolio Assist. Credit Assist is there to help users with predictive credit risk analytics and creditworthiness scoring. In addition to that, it also reads the news, predicts pricing, and combines multiple algorithms into multi-algorithmic scores, which helps investors to capture forward-looking return, which currently would not be available or would not be recommended to them without Intellibonds' technology. Those trade and risk recommendations are consumed in a Portfolio Assist, and this product builds or constructs portfolios, rebalances them, and optimizes them Based on the interaction between the user and the algorithms.

Target Market

Intellibonds is targeting institutional investors of the B2B market. There are approximately 420,000 of those across the globe, and the company has to charge around two percent as its obtainable market average out of the 100 billion spending. It should equal to approximately 1 billion in revenue over time.

Revenue Model

Intellibonds' revenue model is a combination of SAS licenses, which is their call at the moment, and then they are looking at enterprise licenses model and also revenue-sharing model, which are currently in development.

Intellibonds' Progress

Intellibonds started selling its product only recently after almost two and a half years of R&D. In summer 2022, they signed their first client, and at the moment, they have multiple trials, POCs, and engagements with most significant engagements currently happening in the insurance segment. They hope to close the second and third clients in the next two to three months.

What Makes Intellibonds Unique

Intellibonds offers Hyper-personalization, alpha generation, and backtesting driven by the algorithms. They also offer a high level of automation across multiple functions within the organization. They differ from other established players who mostly use quantitative solutions like Bloomberg or FactSet and cost a lot. They also differ from a couple of innovative solutions like BondEdge or MSCI, where they offer various high levels of automation across multiple functions within the organization.

Future Plans

Intellibonds is fundraising and is looking to hire a head of data science and head of sales in Q3. In terms of the product, they are integrating GPT-4 through their partnership with Microsoft and OpenAI and driving more of a client acquisition through the corporate partnership or otherwise. Their ask currently is 1 million, and the funding is eligible for those based in the UK. The objective is to cover 18 months Runway, mostly spending the resources on building distribution channels, but there is about 30% of the resources allocated to product development.

The Intellibonds Team

The Intellibonds team consists of Igor Tucinski, the founder and CEO, who spent roughly 16 years in the fixed income industry as an analyst and then as an assistant portfolio manager working for either investment banks or investment managers. Sanjeev Sanju is the head of technology development, who spent roughly 15 years in Morgan Stanley running technology teams. On the business development front, they have Madhur and Juliet, and Madhur, in particular, spent roughly 40 years in investment banking before him deciding to go part-time and just helping startups.

Conclusion

Intellibonds is a VR air augmented SAS platform that helps institutional investors with their investment decision-making process to improve investment returns and reduce costs. They have created two products: Credit Assist and Portfolio Assist. They are targeting institutional investors of the B2B market and have a revenue model that is a combination of SAS licenses, enterprise licenses model, and revenue-sharing model. They differ from other established players by offering hyper-personalization, alpha generation, and backtesting driven by the algorithms. They are fundraising and are looking to hire a head of data science and head of sales in Q3. The objective is to cover 18 months runway, mostly spending the resources on building distribution channels, but there is about 30% of the resources allocated to product development.