NASHVILLE TN and New York, NY – October 9, 2014 – Digital Reasoning, a leader in cognitive computing, today announced that it has raised $24 million in Series C funding led by Goldman Sachs and Credit Suisse NEXT Investors, LLC, a fund managed within Credit Suisse Asset Management. Digital Reasoning also announced the appointment of Tom Jessop, Managing Director, Principal Strategic Investments at Goldman Sachs to the Digital Reasoning board of directors.
“Digital Reasoning has enabled some of the world’s most respected companies and government agencies to understand their unstructured data through our patented cognitive computing technology” said Tim Estes, Chairman and CEO at Digital Reasoning. “This Series C investment from Goldman Sachs and the Credit Suisse NEXT Investors marks a key milestone on our journey to becoming the trusted leader in cognitive computing that answers critically important questions in a Big Data world. Our companies simply could not be better aligned given their depth of knowledge, global reach, and commitment to innovation.”
"Over the next 5–10 years, cognitive systems and cognition-enabled applications will become ubiquitous," said David Schubmehl, Research Director, Content Analytics, Discovery and Cognitive Computing research at IDC. "Cognitive systems will be the next major disruption in the world of technology and will significantly impact businesses, healthcare, work, society, and our economies in general."
Digital Reasoning has seen the global demand for its machine learning algorithms capable of analyzing human language data at scale surge across all sectors with applications ranging from fraud, risk management, compliance and security to customer intelligence, supply chain intelligence and market research. Digital Reasoning will use the funding to accelerate the development of its product roadmap, sales, strategic partnerships, and customer success – both in North America and in Europe.
“We are proud to partner with Goldman Sachs and Credit Suisse NEXT Investors to build a world class organization and to enhance an essential product portfolio for financial services customers,” said Rob Metcalf, President and COO at Digital Reasoning. “These new strategic partnerships will have a transformational impact on Digital Reasoning and our ability to disrupt multiple markets including capital markets, healthcare and consumer services.”
Previous investors including the Partnership Fund for New York City and Tennessee Angel Fund, NCN Angel Fund II, and investors affiliated with Nashville Capital Network also participated in the round.
"We applaud Digital Reasoning for their latest funding round, which will help them build out their financial services business here in New York City," said Maria Gotsch, President and CEO of the Partnership Fund for New York City. "Digital Reasoning's success demonstrates the power of the FinTech Innovation Lab to accelerate the growth of high-potential technology companies and advance our goal of cultivating and strengthening the city's FinTech ecosystem."
Digital Reasoning was a graduate of the 2012 FinTech Innovation Lab, a 12-week program in which an elite group of growth technology companies are selected to be mentored by senior executives from the top financial services companies and some of New York's leading entrepreneurs and technology luminaries. The FinTech Innovation Lab was co-founded by Accenture and the Partnership Fund for New York City in 2010.
“NCN is pleased to join financial industry leaders Goldman Sachs and Credit Suisse NEXT Investors in supporting Digital Reasoning. What started as an angel investor backed company in Nashville is now a global organization financed by two highly strategic private equity firms. This capital enables Digital Reasoning to pursue an expansion plan which is promising for the company, our investment, and the city of Nashville,” said Sid Chambless, Executive Director of NCN and Managing Partner for Tennessee Angel Fund and NCN Angel Funds.
About The Goldman Sachs Group
The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world.
About Credit Suisse NEXT Investors, LLC and Credit Suisse Asset Management
Credit Suisse NEXT Investors, LLC, is a private equity fund dedicated to investing in financial technology companies. The fund resides within Credit Suisse Asset Management (“CSAM”). CSAM is a key component of Credit Suisse's Private Banking & Wealth Management division and leverages the power of the bank's global franchise to partner with clients and deliver innovative investment products and solutions worldwide. CSAM has $425.2 Billion in assets under management and has 2,100 employees in 18 countries. CSAM manages separate accounts, mutual funds and other investment vehicles for a spectrum of clients including governments, corporations, pensions, endowments, central banks, sovereign wealth funds, family offices and private individuals. CSAM focuses on two investment areas: Alternative Investments and Core Investments. Our alternative investment offerings include hedge fund strategies, alternative beta, commodities and credit investments. In our core investments business we offer equities, bonds, real estate, index and multi-asset class solutions, delivering “core” building blocks for clients in either actively managed or passive investment styles.
Read the Bloomberg Businessweek article from Sarah Frier that explores how banks are using Digital Reasoning to catch rogue bankers.