Dear ,
Mind Foundry is the result of collaboration between two prominent members of Oxford’s Machine Learning Group. The company intends to productise its extensive knowledge in the application of machine learning (ML) and advanced algorithmic modelling techniques to help solve some of the greatest challenges faced by organisations today as data becomes critical to ongoing performance and business success.
This is the second time Parkwalk has invested in Mind Foundry, following on from the 2016 investment made by the University of Oxford Innovation Fund II, managed by Parkwalk.
The Market Opportunity
Mind Foundry’s addressable markets represent some of the most commercially interesting and valuable for any software enterprise. The application of machine learning techniques to big data analytics and real-time Data-in-Motion will fundamentally change how organisations interact with data, develop insight and ultimately service their customers.
A recent report by Transparency Market Research (2015) forecasts that the global predictive analytics market will achieve a compound annual growth rate of 17.8%, reaching $6.5bn (USD) by 2019, from $2.1bn in 2013.
Recent Progress
There has been significant progress since the last funding round. The initial research and engineering team have become a cohesive and focused unit, capable of solving the most complex of problems and turning this into industrial code, evidenced by initial client engagements. The leadership team have oriented the company’s strategic direction to three of the most compelling sectors within data science; the application of ML to the Industrial Internet of things, finance & commerce and the vast amounts of consumer data that organisations have at their disposal, but which has often delivered little insight.
The company has secured contracts within each of these sectors.
The Technology
The technology represents the commercialisation of 30 years of accumulated knowledge in the field of advanced data analytics, including projects awarded over £30m in the last 5 years alone. The technology has been successfully implemented in many commercial environments under a consultancy led model.
A set of core machine learning algorithms have been licensed to Mind Foundry. These algorithms are being developed into application software, which will be subject to copyright protection. Mind Foundry will work with high-impact clients to deliver value.
The Model
The company incorporates advanced algorithms into an application software product, removing the technical obstacles to extracting value from data by automating a three-stage process, which takes clients from raw data to decision in milliseconds: 1. Characterising and integrating diverse and unstructured data 2. Surfacing the anomalies and insight that this combined data holds 3. Recommending or automatically actioning the optimum outcome based on these anomalies and insight.
This productisation is key to enabling the company to change from a consultancy led business to an enterprise software business, where it is estimated 80% of revenues to be software generated and 20% services. This in term will allow the company to scale.
The Team
David Pool, CEO has been successfully involved in a number of software start-ups in Data Analytics and has led them on a path to sustainable growth and profitability. David’s commercial acumen, coupled with the academic founder’s domain expertise, have created a strong team based on shared values for the company’s long term growth and development.
Stephen Roberts, CSO leads the Machine Learning Group and is a leading academic in this area. He has executed numerous consulting projects with industry & finance. He is Director of the Oxford-Man Institute of Quantitative Finance. Stephen has also represented the University’s interests within the Alan Turing Institute, a Government initiative to promote information engineering within the UK economy.
Michael Osborne, CTO is the co-lead of the Machine Learning Group. He is also Co-director of the Oxford Martin Programme on Technology and Employment.
John Clarke, Chairman is a globally experienced Board Level executive operating as CTO and CIO. As a Big 4 Equity Partner, he has worked with PE, Corporate and Government. He is highly experienced in executing major transactions.
The Investment Case
We continue to be impressed with this team and the commercial progress it is making. This is a young and exciting business area and the team is no doubt at the vanguard of this growing market. The opportunities for applied machine learning are vast, which makes the team’s early industry engagements impressive. The challenge will now be to continue to develop commercially and scale-up the business.
