BOREALIS: HOW IT CREATES AND CAPTURES VALUE
What Borealis Sells:
Borealis sells an AI-native investment research platform—specifically, a CIO Co-Pilot combining macro and factor analysis for country-level investment allocation. The platform includes: (1) Factor View—automation of 120+ smart beta factors with 7,000+ combinations and 600,000+ pre-backtested model portfolios for country-level equity allocation; (2) Macro Pulse AI—generative AI-powered macroeconomic analysis that synthesizes central bank, IMF, and World Bank reports; (3) Macro Cognition Engine—AI agents simulating a macro equity research team to produce country-level economic forecasts.
The core value proposition: institutional-grade research that replaces expensive manual research teams ($1M+ annually) with affordable software, positioned as "good enough" quality at "way better" price.
Who Borealis Sells To:
Borealis targets four tiers:
Small RIAs (<$1B AUM): Independent advisors lacking research resources—pricing at $99/seat/month for product-led growth.
Mid-Large RIAs ($1B-$10B AUM): Multi-advisor firms with centralized research needs—$25K-$100K firm-wide pricing via consultative sales.
Integration Partners: TAMPs (Envestnet, Orion, SEI), retail platforms (Robinhood, Zerodha), and data providers—white-label/API partnerships.
Institutional (>$10B AUM): Custodians, broker-dealers, asset managers—custom enterprise solutions.
The target market rationale: post-MiFID II fee compression eliminated 30-60% of global research budgets, leaving investment managers drowning in data but starved for interpretable country-level insights. Borealis fills this gap in an underserved mid-market that can't afford Bloomberg terminals ($27K-$30K/year).
How Borealis Generates Revenue
Borealis generates revenue through a tiered SaaS subscription model: Small RIAs pay $99/seat/month ($300K Y1, $1.5M Y2), mid-large RIAs pay $25K-$100K firm-wide ($400K Y1, $3M Y2), integration partners operate on revenue-share ($200K Y1, $1.5M Y2), and institutional clients pay custom pricing ($100K Y1, $1M Y2). The company captures value through 70-90% cost savings versus Bloomberg ($1,200 vs. $27K-$30K annually), unlocking price-sensitive mid-market adoption. Partner white-label integrations with platforms like Robinhood and Zerodha generate 15-25% subscription revenue with minimal sales overhead, multiplying distribution efficiency.
Revenue Capture Strategy:
Direct SaaS: Recurring monthly/annual subscription fees from RIAs and institutional clients
Partner Leverage: 15-25% of subscription revenue or per-user licensing from white-label integrations with platforms (Robinhood, Zerodha)—multiplies distribution without proportional cost
Margin Structure: 70-90% cost savings vs. Bloomberg unlock price-sensitive mid-market; gross margins scale as customer acquisition shifts to lower-cost partners
Competitive Moat & Value Capture:
Borealis captures value through defensibility: proprietary IP (1 patent granted + 4 in progress), 10+ years of factor research infrastructure, and AI models non-replicable in 12-18 months. Competitors (Bloomberg, FactSet) won't cannibalize existing terminals; smaller players lack $10M+ investment required to build equivalent capabilities. This positions Borealis as the unique solution to country-selection alpha—a problem competitors ignore and can't quickly replicate.
Your CIO Co-pilot for AI equity asset allocation
Borealis Global Analytics is an AI platform for equity asset allocation that provides country- and industry-level insights through dynamic dashboards. Built for CIOs, portfolio managers, and wealth managers, it streamlines research with Macro and Factor Views, model portfolio simulation, and a customizable factor data engine. The firm stands out for its country selection expertise and the proprietary Medium‑Term Country Yield Forecast (CY‑M) framework.
