Wall Street Veterans Raise $30M to Revolutionize Data Analysis

When hedge fund veterans Jan Szilagyi and Giuseppe Sette set out to launch Reflexivity, they envisioned a transformative approach to financial data analysis—an answer to the fragmented, chaotic world of data they had experienced in the hedge fund industry. Armed with $30 million from a Series B funding round led by Interactive Brokers and Greycroft, along with high-profile backers like billionaire Stanley Druckenmiller and hedge fund manager Greg Coffey, Reflexivity, formerly known as Toggle AI, is rapidly progressing toward this vision. With prominent supporters like Millennium Management’s Izzy Englander and General Catalyst, the four-year-old startup aims to become the indispensable AI-driven data platform for traders.

Reflexivity’s approach is uniquely comprehensive, integrating data from dozens of sources, such as S&P Global, Refinitiv, the London Stock Exchange Group, and the Federal Reserve, into a single, AI-powered platform. The platform currently allows investors to analyze 40,000 securities and access real-time, actionable insights on how macroeconomic events may impact specific portfolios. For example, when there’s a shift in treasury yields, Reflexivity’s system assesses the historical and current relationship of those yields to banking stocks, such as Wells Fargo, flagging potential opportunities and risks that traders might otherwise overlook.

Szilagyi and Sette, both former hedge fund traders themselves, have infused Reflexivity’s platform with insights from their own experiences, hoping to address what they saw as a “hopelessly broken” system of scattered, siloed data. “One big fear always present for investors is that you’re going to miss something,” Szilagyi said, referring to the constant tension of making timely, informed trades. Reflexivity seeks to alleviate this fear by enabling traders and institutional investors to connect the dots faster and more accurately than ever before.

One of Reflexivity’s major innovations is its closed-system AI interface, built to mitigate a common issue known as “hallucination” in generative AI. Unlike open models such as ChatGPT, which draw information from vast, uncontrolled sources and sometimes fabricate answers, Reflexivity’s AI is restricted to pre-vetted, high-quality datasets curated by the company. This approach ensures that traders receive reliable, fact-based insights, critical in a domain where even a single erroneous insight could lead to costly decisions. Szilagyi noted the significance of this design choice, emphasizing, “For finance professionals, the ability to get a candid and honest answer is absolutely critical; it only takes one or two hallucinations to be extremely costly when it comes to trading.” To further ensure accuracy, the AI platform will sometimes respond with “no answer” when it lacks sufficient data—another measure that Szilagyi believes reinforces the integrity of its analysis.

The recent rebranding to Reflexivity reflects a broader mission, one that draws inspiration from George Soros’s investment philosophy. Reflexivity, in Soros’s context, emphasizes the importance of examining one’s own assumptions and judgment systems—a principle the startup embodies through its approach to data analysis and AI-driven insights. “Our Series B funding is a pivotal step for Reflexivity, demonstrating the confidence investors have in our vision and capabilities,” Szilagyi said. “This investment reinforces our position as the go-to company for integrating AI in financial analysis and provides a springboard to accelerate our exciting future growth plans.”

For Interactive Brokers Founder and Chairman Thomas Peterffy, Reflexivity represents the next frontier of data-driven financial tools. “We are thrilled to support Reflexivity in their Series B fundraising,” he stated. “Our investment reflects our belief in Reflexivity’s innovative approach to AI in financial analysis. We look forward to integrating their advanced AI capabilities into IBKR, enhancing our platform’s analytical power and providing our clients with cutting-edge tools for better decision-making.”

Reflexivity currently serves around 20 institutional clients with a user base of roughly 15,000, spanning major financial players like Interactive Brokers, MUFG (Japan’s largest bank), Soros Fund, ExodusPoint, and Millennium Management. These partnerships underscore the value that Reflexivity brings to the market, and Szilagyi estimates the potential market size for their platform could reach $16.4 billion as more firms recognize the necessity of integrated, AI-driven data analysis in finance.

As the company looks ahead, Reflexivity’s $30 million Series B funding will play a pivotal role in expanding its roadmap and developing further enhancements to meet the evolving needs of hedge funds, banks, and trading platforms. With cutting-edge AI capabilities and a visionary approach to data, Reflexivity is well-positioned to set a new standard for the financial industry, creating a powerful bridge between human decision-making and machine intelligence on Wall Street.