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John Wang
in
Finance
December 5 14:51

This startup is turning user data into a stock market

User data is becoming a real investment
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What do we get in exhange for our data? Free access to Facebook and Google is great, but it might not be a fair trade. For each user, who surrenders his personal details, Facebook gets about US$112 per year. Google gets about US$256 per year.
There is a number of possibile solutions for this problem, and Delphia's is definitely among tge mos ambitious ones. The stratup is aiming at distributing the data-base wealth by bringing in to the stock market and then sharing the dividends among the contributors.
“Capital markets are 100 times the size of advertising, so if we were going to look for a place to co-locate our data and make it valuable, that is where we should look,” - says CEO Andrew Peek
Delphia is a product of Y Combinator. The company launched last year, and initially offered AI-powered surveys, which would facilitate decisions for media websites. When they realized, that there was not much value in this product, Delphia pivoted to investment. While researching the operations of hedfe funds, the company noted, that the most successful funds were buying large quantities of data to make the identification of market trends easier.
Delphia adapted a different approach. They don't simply buy data from organized sources - they ask the users to hand over their details directly. Users also have the options to link their social media, agree to location tracking, and add their banking history. The machine learning models will use this information and try to identify emerging trends.
The company Delphia is going to charge a 2% management fee for funds that future that investors put into the service. It will then share half of the money to data contributors. Their shares are based on their contributions - the more you share, the more you get.
Peek believes, that as the investment model becomes more attractive and widespread, an individual data contributor will be able to make tens of thousands of dollars over the next 15 years, simply by sharing info.
Currently the company is occupied with accumulating enough contributors. The project will start in earnest when it gets 100 thousands "suppliers ".