CONCEPT

Numerai is a hedge fund run by artificial intelligence algorithms built by a community of thousands of anonymous data scientists. The financial data is transported as encrypted proprietary data, and received as machine learning problems. Data scientists compete to create models where these predictions work back in the financial world, and the top 100 receive payment reward for their work.

HOW THEY’RE DISRUPTING

Whilst traditional hedge funds have been experimenting with machine algorithms, Numerai is the first to crowdsource them. The homomorphic encrypted data means that the fund can share the data without it being stolen by the community (and predict the market themselves), and in return these coders keep their privacy and are paid in the fund’s own cryptocurrency called Numeraire.

DISRUPTION POTENTIAL

Allowing open participation and anonymity creates a very unique relationship between Numerai and their data scientists. Numerai bring together innovative technology, a bustling community and Wall Street to form a new collaboration for making predictions on future markets.

INVESTMENTS AND FUTURE

They have secured $7.5 million in investment round from Union Square ventures and advocates such as Howard Morgan, founder of Renaissance Technologies. Numerai are now offering $1m worth of cryptocurrency to users of Kaggle (a data science community) who sign up to their platform, aspiring to grow their community even further.