It’s Full Speed Ahead For Elsen

Feb 6 2015 | 7:42am ET

Successful algorithmic trading depends on two things: a good algorithm and speed. While the first one is up to the fund manager (and his programming team), the second comes down to technology. In this week’s FINtech Focus, we profile one young software firm that aims to give hedge fund managers an edge when it comes to speed.

Name: Elsen, Inc.
Locations: Boston, MA and Washington, DC
Website: https://elsen.co
Twitter: @elsentrading
Sector: hedge fund infrastructure
No. of employees: 10
Year formed: 2013
Stage: Seed round raised; preparing for Series A; In revenue
Notable investors: Atlas Venture’s Boston Syndicates

Pitch: Elsen is a scalable, reliable, secure platform bringing massive gains in speed and efficiency to the processing of algorithms by hedge funds.

Can you tell us a bit about your company and what it does?

We offer a scalable, reliable, secure platform for bringing massively-parallel processing to financial data. Complex time-series calculations like Monte Carlo simulations and algorithms widely run in financial services for backtesting, pricing and risk management are ideally suited to run in parallel. Our platform is data agnostic and elegantly supports custom data sets.

How is it different than other companies in the same space?

Our biggest competitor is the in-house solution. But in head-to-head completion we can run financial models more than 600 times faster than any CPU-based alternative. We achieve these gains through the use of GPU acceleration, which yields not only substantial improvements in processing time but also significant reductions in the number of servers needed and their related costs.

What is your revenue model?

We’re offering our Accelerated Computing Engine as a service that is securely hosted in the cloud. Clients pay only for the processing power that they use.

Who is your target market? How big is the opportunity?

Hedge funds are our current clients and initial target market. But our technology is broadly applicable in other areas, including:

 ● real-time risk analytics for exchanges and EMS providers
 ● complex derivatives pricing models for data providers
 ● underwriting P2P loans, testing actuarial assumption etc.

Why are you and your team capable of succeeding?

We’ve built a very strong technology team, but we also have a deep understanding of the institutional asset management business. We have team members who have come from investment banks and hedge funds as well as from financial technology firms. And we are building a culture that values listening to clients.

What is your company’s next target/milestone?

We just moved into new offices on February 2nd. We are growing rapidly and need the space. We are also preparing to announce several new partnerships but we can’t say anything quite yet!

Can you tell us one unusual fact about your company?

Elsen is the name we gave to the person we envisioned as our client when we were writing code. She’s a quant who wants her optimization routines to run in a matter of minutes. She doesn’t want to have to wait for them to run over night.

If you would like your fintech firm profiled, please email editorial@finalternatives.com


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