Steve Cohen is plowing into fintech - Frontline

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Wednesday, 18 April 2018

Steve Cohen is plowing into fintech


Billionaire Steve Cohen is on a fintech buying spree.
Point72 Ventures, the venture-capital arm of Cohen’s hedge fund Point72, just invested in Imperative Execution, a New York-based startup with plans to launch a so-called “dark pool” trading platform that will thwart high-frequency traders.
The cash infusion, whose terms weren’t disclosed, comes on the heels of Point72’s seed investment in New York-based Say, a nascent technology platform that seeks to help small shareholders have a greater voice in how the companies they’re invested in are run.
Say “might make the world of activism more interesting because more investors will have a say,” Cohen told The Post on the sidelines of a charity event Monday.
Say — founded by Jeff Cruttenden, who also co-founded micro-investing app Acorns — plans to offer a tech-based solution to facilitate the cumbersome and paper heavy proxy-voting process.
“Some people didn’t think they were worthy of investing and voting,” Cruttenden said in an interview with The Post earlier this month. “The system was about the distribution of the proxy materials, not voting.”
“We want to engage owners to vote their shares. People are craving to be heard today and it’s difficult or impossible to speak as an owner today,” Cruttenden said.
Point72 Ventures led the $8 million funding round for Say.
Imperative Execution was founded by Roman Ginis, who previously worked for Cohen as a quantitative trader.
Ginis’ latest venture hopes to eradicate the multi-billion dollar problem of “slippage” that plagues traders, according to the Wall Street Journal, which first reported about Imperative.
Slippage refers to the difference in the price of a stock when an order is submitted versus when the trade is executed. High- frequency trading has been blamed for widening the spread.
“Most of Imperative’s competitors attack the problem with speed but speed is a nuclear arms race,” Matthew Granade, Point72 Ventures managing partner, said in a statement.
Instead, Imperative bypasses the speed issue by scrambling the sequence of its customers’ orders, making it more difficult for high-frequency trading algorithms to act.

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