youDevise, First Coverage Merge For Investment Manager Service

Dow Jones Venture Wire - 16 March 2011

By Tomio Geron

First Coverage says it can change the "popularity contest" model of evaluating research analysts.

3/16/2011London-- YouDevise Ltd. has merged with FIRST COVERAGE Inc. in a combination of companies that provide software for money managers to keep track of research and recommendations from research analysts and other consultants.

"The current way of analyzing analysts and salespeople is a popularity contest," said Roland Beaulieu, chief executive of FIRST COVERAGE. "We try to provide a means to take 18 to 24 months of stock prices and try to really objectively look at who's the best."

Terms of the transaction, which will make youDevise the new company name, were not disclosed.

Boston-based FIRST COVERAGE had raised $14 million from Commonwealth Capital Ventures, JLA Ventures/Albright Ventures and GrandBanks Capital.

FIRST COVERAGE helps investment managers better analyze and manage the research sent to them from analysts to determine which analysts provided the best research and buy/sell recommendations. The company gets paid both by buy-side investors and sell-side analysts and brokers.

Analysts and brokers provide FIRST COVERAGE with buy and sell recommendations, how strong a conviction they have in the call, and the time frame of their call. FIRST COVERAGE then aggregates that information and provides it to buy-side investors.

In addition, the company helps sell-side analysts market their research to new clients.

The merger with London-based youDevise, which is stronger in international markets, will give the combined company 150 institutional investor clients and 560 sell-side firms.