Missouri based data provider Prattle Analytics has received $3.3m in Series Seed funding led by Chicago based GCM Grosvenor. Prattle quantifies the language in Fed communications which can then be used to predict the market impact of a certain central bank statement.
"As a 'fund of funds,' Grosvenor has a birds-eye view of the hedge fund and capital markets industry," said Prattle CEO and cofounder Evan Schnidman. "Their support is proof that the marketplace — especially hedge funds— could greatly benefit from the data we are producing," he added. According to Schnidman, the data they offer is "unbiased quantitative data on central bank communications." The company received a boost last year when the San Francisco Fed said Prattle was able to predict the Fed's "dot plot," the aggregated forecast of where Fed officials see interest rates at numerous points in the future, using Fed communications ahead of the dot plot's release. And in December 2016, the Fed confirmed that the data produced by Prattle can be used to predict the impact of Fed communications on treasury yields.