- November 4, 2016
- Posted by: David Tabaka
- Category: Compliance, Exchange, Market Data, News, Risk
Reluctance by firms to take risks on unknown entities means being acquired is the most viable route for startups to enter the information space and be a “game changer.”
Though the market data business may have low barriers to entry, consumer firms remain unwilling to trust their limited budgets to unknown quantities, making it harder for smaller “disruptors” in the data space to gain a foothold, said a panel at this week’s Asia Pacific Financial Information Conference in Hong Kong.
While new market entrants offer unique content and tools, “Because there’s so much money at risk within our industry, there has to be some credibility behind it,” said Douglas B Taylor, founder and managing partner of Burton-Taylor International Consulting LLC. “That’s one of the reasons why small companies may not be able to get a foothold in the industry…. I see all these great companies popping up… but the industry won’t accept them because it has money at risk.”