With the AI NAVIGATOR, we have the ability and know how to provide the insight and research on the biggest database of AI companies that are shaping the future of AI. Investor feedback is valued as an integral part of our continuous improvement of quality and customer service and our development of new products and investment strategies. As an organization, our business strategy is to provide a well-rounded range of pre-determined AI investment structures, research and advice utilizing a variety of data sources. Our investors include financial institutions, investment managers, family offices, HNWI and qualified investors. We offer investors a diverse product portfolio including public and private companies. Other product groups may be incorporated into our portfolio if appropriate opportunities present themselves.
Stocks are generally a commodity. We are adding a smart layer on top. Our team of experts is using the AI-NAVIGATOR, our internal research and intelligence platform, to perfom analytics and provide ratings and scrorings. A proprietary formular is weighting the expert scores from different point of views, depending on each area of expertise. Data is collected from a multitude of sources and stored in our research database, which is constantly being updated in realtime.
The calculation of the Index depends upon the following sources of Index constituent transaction and valuation data: (a) anonymized pricing data from private market secondary transactions; (b) data from primary financing rounds of private growth companies that becomes publicly available; © publicly disclosed valuations of publicly reporting institutional investors, (d) social-media and news data and (e) relevant market environment data. The Publisher believes the Index Data represents the most reliable available inputs to an index of this kind and, when incorporated into the AI-42 INDEX, provides investors with a useful benchmark for general valuation trends in the private growth A.I. asset class.
Index Data includes pricing information generated by the transactions occurring in the securities of the Index companies on various secondary market platforms. Enterprise values used in the calculation of the Index are inferred from the pricing of individual securities by the use a proprietary market environment adjustment model for each company. Note that, to adhere to certain confidentiality obligations and the preference of certain issuers, secondary market platforms do not generally publish information specific to individual transactions and do not disclose the identity of the transacting parties. The Publisher believes that data from these secondary transactions, because they are arms-length purchases and sales by institutions and other accredited investors, represents an important input to the Index.
42.CX scans a variety of sources daily for news and information regarding any of the Index companies. When it finds an indication that a company has closed an equity financing, 42.CX obtains certain of the company‘s public filings, including Certificates and Articles of Incorporation and federal Regulation D filings. These filings, taken together with other information typically available like company press releases and news stories and proprietary market environment adjustment models, enable 42.CX to infer a company valuation implied by the sale of the company’s equity securities. These valuations are incorporated into the Index.
An increasing number of publicly reporting institutional investors, including traditional mutual funds, are now participants in the private growth asset class. As publicly reporting entities, they must monthly or quarterly value the positions in their portfolio and disclose those values in filings with the U.S. Securities and Exchange Commission. 42.CX tracks publicly reporting institutional investors holding securities of Index companies and regularly obtains their most recent SEC filings. By applying our proprietary market environment adjustment models to the funds’ portfolio securities marks, 42.CX is able to infer a valuation for the Index Companies. These valuations are incorporated into the Index.
Engagement levels and activities in social media is correlating with the companies traction and valuation. 42.CX tracks relevant data sources of the Index companies in real-time. By applying our proprietary market environment adjustment models to the social media engagement levels, 42.CX is able to infer a valuation for the Index Companies. These valuations are incorporated into the Index.
Common valuation methodologies which are based on secondary or primary rounds of financing are not accurate enough to establish a real-time valuation of an Index Company. 42.CX has created a proprietary market environment adjustment model to adjust market valuations in real-time based on changes of the market environment itself. Changes in valuations or multiples of peer groups are continuously being re-calculated and are changing the value of the Index Company. Other factors like market volatility, general sentiment, interest rates, exchange rates etc. have an additional impact on marketability and therefore on the valuation of the Index Company. These valuations are incorporated into the Index.