Posted on April 3, 2019 by staff

Fast-growing OpenGamma to boost headcount with $10m fundraise


FinTech firm OpenGamma is plotting global expansion after raising $10 million growth funding.

The derivatives analytics leader works with six of the world’s top 10 banks and 10 hedge fund managers with over $3 billion assets under management.

It helps them reduce the cost of trading derivatives at a time when new regulation is forcing firms to post billions in capital to take market positions with significant increases over the next two years.

The funding round was led by early-stage FinTech and B2B software venture capital firm Dawn Capital and includes participation from existing investors Accel, CME Ventures and ex-SunGuard CEO and prolific FinTech angel investor Cristóbal Conde.

It follows a period of rapid growth for the business which experienced a 300 per cent 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.

With a headcount currently numbering 46, the new funding will enable OpenGamma to continue its accelerated growth strategy as it expands its teams in London, New York and Singapore. The main focus will be on the US, with the aim of doubling that team.

OpenGamma will also launch new products for existing and new markets – such as the collateral and treasury space – and says it is perfectly positioned to stay on the same growth trajectory as the past year.

“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,” said CEO Peter Rippon.

“We are excited to be working with Dawn Capital, as we can draw on their expertise in B2B FinTech to further accelerate our growth.”

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.

“We are delighted to be partnering with Peter and his team as OpenGamma continues to expand its product proposition and geographic footprint.”

Bruce Golden, partner at Accel, said: “Since our original seed investment, OpenGamma has evolved into one of the most sophisticated SaaS businesses focused on making the derivatives market safer and more efficient.

“Their rapid growth underscores their customers’ reliance on them as a key partner in driving capital efficiency and meeting regulatory obligations.

“We are delighted to welcome Dawn Capital as our newest syndicate partner, as we support the OpenGamma team in solidifying their position as the global leader.”