OpenGamma, maker of a open-source analytics and risk management platform for the financial services industry, has sealed $15 million in Series C financing. New investor ICAP led the round. Previous investors Accel Partners and FirstMark Capital also participated. OpenGamma was founded in 2009 and has offices in London and New York.
OpenGamma, creators of the first open-source analytics and risk management platform for the financial services industry, today announced that it has completed a $15 million Series C round of equity financing led by new investor ICAP, the world’s leading interdealer broker and provider of post trade risk and information services, joined by Euclid Opportunities. The round also includes follow-on investments from previous investors Accel Partners and FirstMark Capital.
OpenGamma will use the funding to drive continued product innovation, expand geographically to support its growing global client base, continue to support its active and growing open source community, and meet the significant market demand for advanced risk management and analytics systems. Demand has increased dramatically as regulation and growing data volumes push hedge funds and investment banks to explore flexible open source alternatives to traditional, proprietary, and costly risk analytics tools. Firms are increasingly turning to OpenGamma to help them customize their risk analytics systems, build custom real-time trading applications, and maximize IT resources to reduce costs.
“OpenGamma has clearly demonstrated that its open source solutions are ideally suited to change the way risk analytics are delivered and utilised in today’s demanding regulatory environment,” said Mark Beeston, CEO of Post Trade Risk and Information at ICAP, who has also joined OpenGamma’s Board of Directors. “OpenGamma’s technology is an obvious fit for ICAP and will complement our suite of services to help our customers manage their risk exposure.”
The OpenGamma Platform, the company’s flagship product launched in April 2012, offers a robust and flexible open-source alternative to traditional homegrown or proprietary analytics and risk management solutions. The platform delivers unprecedented transparency and improves the quality, accuracy and real-time availability of the critical trading and risk analytics required by today’s front-office traders, quants and risk managers. It provides fast access to ad-hoc and pre-trade analysis, live risk and analytics, and batch and overnight risk reporting, all in a platform that can easily integrate with legacy data sources, financial analytics libraries, trading systems and multiple market data feeds.
“Post trade services are a strategic part of ICAP’s business and as a company we have been looking at identifying the next generation of the companies that will help our customers manage risk in their markets,” Beeston continued. “Together with our early stage funding program Euclid we have been looking for the Traianas and TriOptimas of the future. We immediately realized the value in OpenGamma’s ability to innovate and create a de facto standard for risk management in the market.”
Steve Gibson, Managing Director of Euclid Opportunities, noted “Market participants are striving to improve the quality and flexibility of trading infrastructure whilst also needing to reduce fixed costs and inefficiencies. We see the industry’s appetite for open source offerings continuing to grow as a viable means to meet these aims.”
OpenGamma has achieved significant milestones in 2012 with the launch of OpenGamma Platform 1.0 and their selection as a finalist of the Innotribe Startup Challenge, honoring the company as one of the most promising financial technology and financial services start-ups. Recognized as the winner and “Top Innovator” at the Regional Showcase held in Belfast in June 2012, the company now advances to the 2012 Innotribe Startup Challenge Finals at Sibos, SWIFT’s annual conference, in Osaka, Japan in October 2012, where they will compete for global recognition. They were also named a Red Herring Top 100 Europe award finalist, a prestigious list honouring the year’s most promising private technology ventures from the European business region.
“Financial services firms can no longer afford to view risk infrastructures as one-dimensional as they navigate this complex regulatory environment,” said Kirk Wylie, CEO of OpenGamma. “OpenGamma is committed to democratizing and introducing a new level of transparency to the market, and we’re confident that this investment will help fuel our innovation and expand the reach of our open source community.”
ICAP is the world’s leading interdealer broker and provider of post trade risk and information services. The Group matches buyers and sellers in the wholesale markets in interest rates, credit, commodities, FX, emerging markets and equity derivatives through voice and electronic networks. Through our post trade risk and information services we help our customers manage and mitigate risks in their portfolios. For more information go to www.icap.com
About Euclid Opportunities
Euclid Opportunities offers a funding program to early-stage companies that provide innovative technology to the financial markets. Euclid Opportunities is majority owned by ICAP plc, and forms part of the post trade division of ICAP, which also comprises TriOptima, Traiana, Rematch, Reset and ICAP Information Services. ICAP is the world’s leading voice and electronic interdealer broker and provider of post trade risk and information services. For further information please visit www.euclidopportunities.com
About Accel Partners
Founded in 1983, Accel Partners has a long history of partnering with outstanding entrepreneurs and management teams to build world-class businesses. Accel today invests globally using dedicated teams and market-specific strategies for local geographies, with offices in Palo Alto, California, New York City, London and Bangalore, as well as in China via its partnership with IDG-Accel. Accel has helped entrepreneurs build over 300 successful companies, many of which have defined their categories, including Actuate, AdMob, Agile Software, Alfresco, Angry Birds (Rovio), Atlassian, BBN, Bonobos, Braintree, Brightcove, Cloudera, ComScore, Diapers.com (Quidsi), Dropbox, Etsy, Facebook, Flipkart, Fusion-IO, Gameforge, GlamMedia, Groupon, Imperva, Infinera, Interwoven, IronPlanet, JBoss, Kayak, Lookout, Macromedia, metroPCS, Mind Candy (Moshi Monsters), OPOWER, Polycom/PictureTel, Playfish, Portal Software, QlikTech, Rapt, Real Networks, Redback, Responsys, Riverbed, Spotify, Squarespace, SunRun, Trulia, UUNet, Varonis, Veritas, Walmart.com, Webroot, Wonga, XenSource and Zimbra. For more information, please visit the Accel Partners web site at www.accel.com
About FirstMark Capital
Based in New York City, FirstMark Capital is an early stage venture capital firm investing in visionary entrepreneurs who are creating new markets with innovative technology solutions or fundamentally changing existing markets by applying a fresh approach or new business model. FirstMark partners early in a company’s lifecycle, offering deep industry insight, a broad network of relationships and the operational expertise to build lasting businesses. Select historical investments include Riot Games (Acquired by Tencent Holdings); Duck Creek Technologies (Acquired by Accenture); Netgear (NASDAQ: NTGR); Boomi (Acquired by Dell); StubHub (Acquired by eBay); Netegrity (Acquired by CA); OutlookSoft (Acquired by SAP); and Navic Networks (Acquired by Microsoft). Current investments include: SecondMarket, Knewton, Pinterest, Shopify and Lumos Labs. For more information, visit: www.firstmarkcap.com
OpenGamma was founded in 2009 to develop an open platform for analytics and risk management for the financial services industry. The company’s flagship technology product, the OpenGamma Platform, is designed to allow financial services firms to unify their calculation of analytics across the traditional trading and risk management boundaries. The company is headquartered in London with an office in New York.