"AI is Changing Everything About Capital Allocation, and I Joined the Tip of the Spear”: An Interview with LIQUIDiTY's New CEO, North America

Dan Allred CEO, N.A., shares his views on financial services, AI, and non-dilutive financing...

"AI is Changing Everything About Capital Allocation, and I Joined the Tip of the Spear”: An Interview with LIQUIDiTY's New CEO, North America

Dan Allred CEO, N.A., shares his views on financial services, AI, and non-dilutive financing...

8 min read
September 18, 2023

In a notable move for the largest AI-based asset management firm in the world, LIQUIDiTY Group has named Dan Allred as its CEO, North America. Allred, who gained his extensive background and expertise at Silicon Valley Bank, shares his views on the intersection of financial services, AI, and non-dilutive financing solutions.

Allred spent over two decades at SVB, playing a pivotal role in the National Fintech practice. Allred believes this deep experience positions him to contribute significantly to Liquidity Group. 

“My time at SVB has given me a concrete belief that financial services must be delivered digitally and seamlessly, which is a big part of what attracted me to LIQUIDiTY,” he said. “The convergence of AI and ML technologies with the growth of global capital markets and data-driven financing will lead to deployment of global capital via technology platforms that tie directly to the financial systems of companies seeking that capital.”

The proven success of these technologies has attracted assets to the market, he added, as demonstrated by LIQUIDiTY's partnerships with entities like MUFG, MARS, and Apollo. "LIQUIDiTY uses its ML engine to provide non-dilutive growth capital financing for dynamic businesses at scale." This, according to Allred, sets them apart from traditional models that relied heavily on financial analysts.

“Previously, this required armies of financial analysts and asymmetric access to deal flow,” he said. “With LIQUIDiTY's machine learning approach, we can analyze large amounts of data from more companies than a team of analysts could ever handle. Thanks to this decision science platform, we do this with better precision and speed than any analog team could do, or any tech platform today does.”

On the broader question of market trajectory, Allred sees lending and capital markets as sectors ripe for disruption, especially with machine learning models. He predicts immense potential in applying AI to improve client services in the financial sectors, a space where traditional banks and brokers have historically excelled.

"AI is changing everything about capital allocation, and I've joined the tip of the spear," he said. This includes the potential for more efficient financing of companies and the automation of various investment tasks. "Many VCs are already using homegrown AI systems to prioritize deal flow and streamline due diligence."

When asked about the relevance of non-dilutive investment, Allred emphasized its growing significance in shaping innovative companies. 

"The innovation economy itself is expanding," he said, pointing to a shift towards diverse financing methods beyond just venture capital. He also cites the rise of predictable business models, like SaaS and other subscription services, that align with formulaic financing methods. Allred is bullish on LIQUIDiTY Group's potential in this space, highlighting the firm's role in advancing this trend through technology.

Pointing to a LIQUIDiTY Group finding that demand for non-dilutive financing rose 360% globally this past year, and the increased availability for such supply, Allred added there is an opportunity to fundamentally change growth capital financing and make an enormous impact on growing and financing companies. 

“Technology can do a lot of things extremely well at scale,” he said. “However, banks, brokerages, wealth advisors, accountants, and others in the financial services industry, tend to still do a better job with client service, especially for high-end clients and businesses. I think AI and machine learning presents an opportunity to catch up and even prevail in this area, too, and with my new role at LIQUIDiTY Group I'm excited to now be at the forefront of this space.”

Dan Allred is looking forward to talking with growth-stage companies on the rise. His email is dan@liquidity-capital.com.

About LIQUIDiTY Group

LIQUIDiTY Group is the largest AI-based financial asset management firm in the world. With $2.7b AUM across funds focused on North America, Asia-Pacific, Europe, and the Middle East, LIQUIDiTY Group operates globally with offices in Tel-Aviv, Abu Dhabi, New York, London, Singapore, Tokyo, Mumbai, Boston & San Francisco. The firm’s patented machine learning and decision science technology enables it to deploy more capital through more deals faster than any firm in capital markets history, establishing it as the fastest-growing provider of non-dilutive and equity financing to mid-market and late-stage companies. LIQUIDiTY Group is backed by leading global financial institutions including Japan’s largest bank, MUFG, Spark Capital, and Apollo Asset Management For more information, visit www.liquiditygroup.com

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