As we come out of stealth mode, we’ve been delighted with the initial coverage we’ve received from leading publications such as Fast Company, Forbes, TechCrunch and the Globe and Mail. Our innovative business model, which seeks to create an investment advantage over time through the pooling of data, appears to have struck a chord. Check them out below.
"Delphia is gating participants behind an application process, meaning that it won’t start collecting users’ data until it has at least 100,000 contributors. But until that happens, it’s in somewhat of a chicken-and-egg situation: Contributors don’t stand to gain anything without significant outside capital, but that investment won’t come until Delphia can prove that its model works, and its model won’t really work without a critical mass of data contributors."
"An asset manager with a twist, the company, which is described on the web site as 'an investment collective', will have different kinds of customers. Some will use Delphia as an asset manager. Others will choose to become data providers. (At some point, they might overlap). The former, the asset management clients, will pay a fee. But Delphia will then redistribute half of it to data contributors. There’s also a point system for different types of data that determines the share of redistributed fees participants can get. As an added incentive, users (called members) who refer someone to the company receive a quarter of a point on every dollar invested by that person.
"'It’s a way for those who want to pay for an investment advantage to promote financial inclusion,' says Peek, who is co-founder and CEO of the company.
"In the asset management world, “unique proprietary data is at the heart of creating a competitive advantage,” says Peek. In Delphia’s case, the plan is to collect social media, banking, location, streaming and other data from participating users. The platform pairs all that with answers to questions on topics like current events regularly posed to members through a mobile app. Delphia then creates a continuously evolving profile of users. (It doesn’t sell data to any third parties). Users control which data sources to share with and link to the company."
Delphia launches platform to help consumers turn their data into investable capital
"'Everyone likes to think about the value of data in the context of Google and Facebook, but what they’re really talking about is the value of data in the context of advertising,' Peek told BetaKit. 'What’s maybe lost on people is that advertising is about one hundredth the size of capital markets. So if you’re going to try and capture value for people from personal data, you probably shouldn’t be playing in a small sandbox, like advertising.'”
Delphia wants to turn your data into investment capital through collective action
"Delphia’s model is definitely ambitious, and it also requires a lot of trust on the part of users, something Peek freely admits. The difference, he says, is that their model only works so long as they continue to earn that trust, as users have to continue to participate to ensure their advantage remains in place. It’s also worth noting that there doesn’t seem to be any realistic way of putting the genie back in the bottle when it comes to data generation and sharing, but Delphia’s vision does re-introduce an element of control, as well as a way for those who might be locked out of traditional stock market investing to participate in generating true economic power."
Invest your data in the stock market to accelerate returns
It was exciting to be featured on a platform that we admire so much alongside some really neat product ideas, not just in a listing but as the featured product in their daily newsletter.
THE GLOBE AND MAIL
Toronto startup Delphia says paying consumers for data will give it an investing edge (subscribers only)
"Delphia sees itself as a benevolent alternative to this decade’s dominant data-driven business model, which tends to deliver profit to those who collect data rather than provide it. But the company’s new model is also built on a precarious assumption: that beating the market would be an easy fight. Even the alternative funds that Delphia wants to beat — including hedge funds and quantitative funds designed with advanced mathematical models using expensive collections of public data — struggle to keep up with the markets. In the past decade, the S&P 500 has outpaced multiple hedge-fund indexes, including the Credit Suisse Tremont Hedge Fund Index."
Metro Morning (Listen)
An interview with Farrah Merali on CBC Radio’s Metro Morning gave Andrew an opportunity to contextualize Delphia in the landscape of the broader personal data economy, surveillance capitalism, and how our business model turns things on its head.