Reflexivity, formerly known as Toggle AI, has secured $30 million in Series B funding to revolutionize how investors and traders leverage data for decision-making. The late October round was led by Interactive Brokers and Greycroft, with participation from legendary investors including billionaire Stanley Druckenmiller and Greg Coffey, founder of hedge fund Kirkoswald.
Founded by two former hedge fund traders, CEO Jan Szilagyi and President Giuseppe Sette, Reflexivity addresses a critical pain point in the investment world: the fragmentation of data sources that can cause traders to miss crucial market opportunities. Szilagyi, who spent nearly 20 years as a portfolio manager at firms including Druckenmiller’s Duquesne Capital Management and Fortress Investment Group, experienced firsthand how “hopelessly broken” the investment analysis process had become.
The platform combines third-party data from a dozen providers including S&P Global, Refinitiv, and the London Stock Exchange Group, along with proprietary internal information, to deliver comprehensive analysis covering approximately 40,000 securities. The startup’s generative AI-powered interface and proprietary knowledge graph help users connect investing relationships and understand potential market impacts on their portfolios.
Reflexivity has attracted an impressive client roster of about 20 institutional clients representing some 15,000 individual users, including major players like Japan’s largest bank MUFG, and hedge funds such as Millennium Management, Soros Fund, and ExodusPoint. The company estimates its potential market at $16.4 billion and currently holds a valuation between $115 million and $150 million.
A key differentiator for Reflexivity is its approach to AI hallucinations—the tendency of generative AI to fabricate answers. The platform operates as a “closed system,” where AI models can only pull from pre-vetted data sources, unlike open systems like ChatGPT that draw from the entire internet. Additionally, Reflexivity’s models are programmed to admit uncertainty, responding “I don’t know” about 5% of the time rather than forcing potentially incorrect answers—a critical feature for high-stakes financial trading where even one or two hallucinations could prove extremely costly.
Key Quotes
When you are an investor inside a major hedge fund, one big fear that is always present is that you are going to miss something. It’s always exciting to have a trade that you are the only one that’s in it, but the thing that is far worse is to miss on the trade that everybody else but you is in.
CEO Jan Szilagyi explains the core problem Reflexivity solves—the fear of missing critical market opportunities that competitors are exploiting. This insight, drawn from his 20 years as a portfolio manager, drove the creation of the platform.
Reflexivity is the act of examining one’s own assumptions, beliefs, and judgment systems, and thinking carefully and critically about how these influence the research process.
Szilagyi explains the company’s name change, referencing a term popularized by legendary investor George Soros. This reflects the platform’s philosophy of helping investors critically examine their decision-making processes.
For finance professionals, the ability to get the candid and honest answer is absolutely critical because it only takes one, two hallucinations to be extremely costly when it comes to trading.
Szilagyi addresses one of the biggest concerns with generative AI in finance—hallucinations. This quote underscores why Reflexivity’s closed-system approach and willingness to say “I don’t know” 5% of the time is a critical competitive advantage in financial applications.
Our Take
Reflexivity’s funding success represents a maturation moment for AI in finance. Unlike earlier AI trading tools that promised to replace human judgment, Reflexivity positions itself as an intelligent assistant that enhances human decision-making—a more realistic and sustainable approach. The company’s closed-system architecture to prevent hallucinations is particularly noteworthy, as it addresses the elephant in the room that many enterprise AI vendors ignore. The backing from sophisticated investors like Druckenmiller isn’t just about capital—it’s a powerful endorsement that validates both the technology and the market need. With only 20 institutional clients despite having marquee names, Reflexivity’s growth trajectory could be explosive if it can maintain product quality while scaling. The $16.4 billion market opportunity suggests this is just the beginning of AI’s transformation of investment management.
Why This Matters
This funding round signals growing confidence in AI-powered financial technology among the industry’s most sophisticated investors. The participation of legendary traders like Druckenmiller and backing from major hedge funds validates the transformative potential of AI in investment management.
Reflexivity’s approach to solving AI hallucinations through closed-system architecture represents a crucial advancement for enterprise AI applications, particularly in high-stakes environments like finance where accuracy is paramount. This model could serve as a blueprint for other industries grappling with generative AI reliability concerns.
The startup’s success also highlights a broader trend: AI is moving beyond automation to augmentation, helping professionals make better decisions rather than replacing them. With a $16.4 billion addressable market and only 20 institutional clients so far, Reflexivity has substantial room for growth. As financial institutions increasingly seek competitive advantages through technology, AI-powered data analysis platforms like Reflexivity are positioned to become essential infrastructure for modern investment management, potentially reshaping how trillions of dollars are allocated across global markets.
Recommended Reading
For those interested in learning more about artificial intelligence, machine learning, and effective AI communication, here are some excellent resources:
Recommended Reading
Related Stories
- OpenAI’s Valuation Soars as AI Race Heats Up
- Amazon to Invest Additional $4 Billion in AI Startup Anthropic
- EnCharge AI Secures $100M Series B to Revolutionize Energy-Efficient AI Chips
- How Companies Can Use AI to Meet Their Operational and Financial Goals
Source: https://www.businessinsider.com/ai-fintech-reflexivity-pitch-deck-raise-30-million-series-b-2024-10