OpenGamma Raises $10 Million for Expansion

Derivatives analytics firm OpenGamma has raised $10 million in its latest funding round as it aims to release two new products in the next 18 months.

The funding round, its fifth so far, or Series E, was led by VC firm Dawn Capital and supported by existing OpenGamma investors Accel, CME Ventures, and former SunGard chief executive Cristobal Conde.

Maxime Jeanniard, OpenGamma’s chief operating officer, says the funding round was geared toward further expansion.

“This funding round comes on the back of a great year for OpenGamma, but the reason we decided to go to the market to raise funds is to accelerate growth,” Jeanniard says. “The first [reason] is so we can launch one to two more products in the next 18 months and the second is geographic expansion.”

Jeanniard says the new products OpenGamma will be releasing have not been finalized yet, but could be around collateral optimization, particularly as the firm is involved in a few pilot projects in this area. There is no timeline yet for the new product releases, but Jenniard notes the capital raising helps bring many of these pilots to commercial launch.

The company is also looking to enhance its existing margin analytics products and is revising its client onboarding process. Jeanniard says that as more companies begin adapting to margin requirement regulations, more are looking to lower costs and are tapping vendors like OpenGamma.

London-based OpenGamma will also look to expand its workforce and presence in at least two regions.

The company currently has five employees in the US but is hoping to double that number, having opened its first US office in New York in November last year. OpenGamma is also evaluating how to expand its presence in Asia, including either increasing its presence in Singapore or possibly opening another office.

“In the US, it’s a good idea to scale in a key market. In Asia, we’re trying to see where the biggest potential whether that means keeping just one office or figuring out where to best put another location,” he says. “We’re going through a critical phase of scaling up and hitting target growths for customer acquisition and revenue.”