AI startup AlphaSense raises $650M in funding at $4 billion valuation; agrees to buy rival Tegus for $930 million

AI-driven market intelligence startup AlphaSense announced on Tuesday that it has raised $650 million in a new funding round, elevating its valuation to a robust $4 billion. This marks a $1.5 billion increase from its valuation following a $150 million funding round in September 2023.

The latest funding round was co-led by Viking Global Investors and BDT & MSD Partners, with continued participation from existing investors including  Alphabet’s CapitalG and Goldman Sachs Alternatives. Fresh backers, including J.P. Morgan Growth Equity Partners, SoftBank’s Vision Fund 2, Blue Owl, and Alkeon Capital, also joined the round.

In addition to the funding news, AlphaSense announced it has agreed to acquire Tegus, a privately held company, in a deal valued at $930 million. The acquisition, anticipated to close in the third quarter of 2024, will enable AlphaSense to integrate Tegus’ extensive data on public and private companies into its platform.

“This transaction marks a pivotal moment for AlphaSense in our mission to help businesses and investors make better decisions with confidence and speed,” AlphaSense founder and CEO Jack Kokko said. “I am thrilled to join forces with the Tegus team as a significant leap forward in furthering our mission, adding top-quality content on public and private companies, and enhancing our ability to deliver even more comprehensive insights to our customers around the world.”

Tegus boasts a rapidly expanding library of high-quality expert research, covering over 35,000 public and private companies across sectors such as TMT, consumer goods, energy, and life sciences. Its comprehensive financial data offerings include financials, key performance indicators (KPIs), and fully drivable models on more than 4,000 public companies. Additionally, Tegus’ BamSEC self-serve solution allows users to search and access securities filings with ease.

“This is a significant moment for Tegus. For nearly a decade we’ve worked to transform how companies and investors conduct research. By joining forces with AlphaSense, we’re going to empower clients in new and more powerful ways. AlphaSense and Tegus are like-minded companies, with a shared vision, and I couldn’t be more excited to continue pursuing our mission of modernizing research for businesses, together,” Tegus Co-Founder and Co-CEO Michael Elnick said.

Founded in 2011 by CEO Jack Kokko, AlphaSense offers a comprehensive market intelligence platform designed to help customers extract vital information from a vast array of public and private sources such as equity research, earnings calls, company filings, and news. Competing with industry giants like Bloomberg, Norway’s Exabel, and FactSet, AlphaSense aims to provide data that informs corporate and investment strategies.

The company’s client roster includes notable names like German software titan SAP SE, U.S. industrial giant 3M, and Alphabet’s Google.

Earlier in April, AlphaSense surpassed $200 million in annual recurring revenue following a $100 million funding round led by Alphabet’s CapitalG, with participation from Goldman Sachs Asset Management and Viking Global. At that time, the funds were earmarked for enhancing the company’s advanced AI capabilities. Previously, AlphaSense was valued at $1.7 billion after a $225 million raise in 2022.

With this latest infusion of capital and the strategic acquisition of Tegus, AlphaSense is poised to further cement its position as a leading provider of market intelligence, delivering critical insights to business and financial professionals worldwide.