Over ten years ago, OpenGamma emerged as one of London’s new breed of FinTech startups, launching an open source analytics and risk management platform for the financial services industry. Its open architecture allowed financial services firms to develop analytics applications aimed at traders and risk managers. This open-source approach was designed to disrupt the proprietary software platforms.
Today it’s taken that vision to a new level, become something of a leader in derivatives analytics, and announced that it has raised $10 million in growth funding led by early-stage fintech and B2B software VC Dawn Capital. Existing investors Accel, CME Ventures and ex-SunGuard CEO and angel investor Cristóbal Conde also participated.
According to CrunchBase, OpenGamma has now raised a total of $50.2M in funding over 9 rounds. This included a debt financing in 2014, and rounds which included FirstMark Capital in New York, angel Lawrence Lenihan, and a strategic investment from NEX Group.
Peter Rippon, CEO of OpenGamma, explained: “Regulation has created new opportunities for firms like OpenGamma. We work with key market infrastructure providers, including CME Group, Eurex, JSCC as well as top tier banks, to ensure we have access to the models needed to solve a key industry problem: the rising cost of trading derivatives.”
With new regulation forcing firms to post billions in capital to take market positions with significant increases over the next couple of years, OpenGamma’s analytics solutions allows banks, hedge funds and asset managers to reduce the cost of trading derivatives.
The company claims that it has experienced a 300% increase in recurring revenues in the last 12 months, as well as a geographical expansion across the globe – doubling both the business’ customer base and team.
The new funding will enable OpenGamma to continue its growth strategy as it expands its teams in London, New York and Singapore.
Josh Bell, General Partner at Dawn Capital, said: “As regulation continues to drive up the cost of trading derivatives, efficient use of capital has become essential for financial institutions to maintain their business models. Top-tier global investment banks and asset managers are all turning to OpenGamma for support, attracted by the depth, coverage and speed of deployment of OpenGamma’s analytics platform.”