Waters Technology: Alt data’s second inning: Brace for a long M&A game

Read the full article on Waters Technology: https://www.waterstechnology.com/data-management/7878121/alt-datas-second-inning-brace-for-a-long-ma-game

Alternative data—information collected usually from industries outside the financial markets to provide traders and investors with exclusive and early insight into companies, their stock, and potential investment decisions—has been the hot topic among quants and data scientists in recent years. Demand for new insights has only intensified as the Covid-19 pandemic has disrupted the accuracy and value of traditional market indicators.

But despite demand for more alternative data, its providers—which usually focus on one core dataset, or a small suite of products derived from the same core data—are facing a quandary: How do they continue to grow their business? Can they continue hawking a single dataset to a wider audience? Do they need to develop other datasets—or merge with another provider already offering other data to broaden their appeal? Or do they need to be snapped up by larger vendors with existing distribution networks or private equity firms looking to create greater value by rolling them up with other start-up alt data providers facing the same issues?

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