AlphaSense, an AI research company backed by Goldman Sachs and valued at $2.5 billion, is experiencing stellar growth with a recorded $200 million in year-on-year recurring revenue. With these impressive figures, the firm now sets its sights on entering the public market.
Established in San Francisco by Jack Kokko and Raj Neervannan, AlphaSense boasts an enviable clientele. The majority of their 4,000+ corporate clients feature among the S&P 500 businesses, paying between $10,000 and $20,000 annually per seat for services such as competitive analysis and regulatory clearance monitoring.
Through adept use of AI and machine learning, AlphaSense manages to process and extract valuable data from vast amounts of public documents. For example, SEC filings, speeches, and research papers. This unique ability to turn complex legal and financial jargon into understandable insights caught the attention of high-profile figures like Cynthia Paul, a hedge fund manager.
AlphaSense’s growth trajectory towards IPO
Initially an early adopter of the platform, Paul later chose to invest significantly in the technology.
The company’s CEO, Jack Kokko, recently announced that AlphaSense’s annual recurring revenue has successfully doubled since summer 2022 to reach $200 million. With this growth, the team size has expanded by 20% since January 2023 and broadened its operations to Singapore. AlphaSense now looks towards the timeline for launching an Initial Public Offering (IPO).
To aid in this process, Heather Zynczak, previously with software company Pluralsight, has joined AlphaSense as Chief Marketing Officer (CMO), bringing to bear her experience and expertise to guide the company’s impending IPO.
CEO Kokko credits AlphaSense’s inception and growth to his early experience during the dotcom boom and the innovations in generative AI technology. Further, he views the diverse dataset offered by the platform as its key advantage. Kokko gives particular credit to large language models like Anthropic’s Claude 3 model for contributing significantly to the company’s rapid expansion.
