Updated from 8:00 a.m. to reflect funding round is Series A-1, not B and clarifications on actual funding.
NEW YORK (TheStreet) -- Estimize, the New York-based crowdsourcing site for earnings and revenue estimates, has taken its different approach to Wall Street estimates to a whole new ballgame: mergers and acquisitions. It has done this while raising an additional $1.2 million in funding, coming mostly from previous investors in the company.
In an telephone interview last week with CEO and founder Leigh Drogen (disclosure: Drogen and I used to work together at StockTwits), he discussed the launch of Mergerize, a platform in which people can guess whether a company will get bought or buy another company, and at what price. "It's all the same set up as Estimize, but it's more about if Company X will buy Company Y for X dollars," Drogen noted. Not only does the platform feature more than 4,800 public companies, but it features private ones and start-ups as well.
Drogen noted the database was built off Crunchbase's application programming interface (API), which has an extensive list of private companies, most of them in the technology field. Crunchbase is a division of TechCrunch, a tech-focused Web site owned by AOL (AOL).
Not only does Mergerize give Estimize the chance to expand its business, but it caters to a largely different customer base than traditional analysts. Drogen noted Mergerize, which went live last week, caters toward quants and event-driven traders or those who focus their portfolios on specific events such as a merger. It also caters to corporations, in that corporations can see what's expected of them. "What should I do, what does the market expect from me?" Drogen stated, as being some of the reasons why corporations would look at his site.