For the first time in history, the floor of the NYSE was closed during the pandemic but this did not affect stock trading. The global finance industry is increasingly becoming digitized and institutional traders rely on communication tools like to collaborate and communicate. This cloud-based voice communication platform integrates with legacy trading technologies and connects counterparties across all asset classes. Its APIs give clients and channel partners access to vast sets of metadata, allowing traders to unlock value and knowledge present within their voice conversations. As more and more trading activity is managed remotely, Cloud9 is providing the infrastructure for hedge funds, institutional traders, and asset managers to be connected in the cloud.
AlleyWatch caught up with COO Jim Miller to learn more about how traders have leveraged Cloud9 during the pandemic to avoid any disruption to their workflows and the company’s recent funding round, which brings the total funding raised to $61.5M across four rounds.
Who were your investors and how much did you raise?
The investment was a $17.5M Series B funding round led by a strategic investment from UBS, with participation from existing investors J.P. Morgan and Barclays.
Tell us about the product or service that Cloud9 Technologies offers.
Cloud9 provides voice collaboration tools for institutional traders. The company is leading the way in providing integrated and secure cloud-based communication solutions to users on and off the trading floor. As global capital markets become increasingly mobile and digitized, Cloud9 is equipping financial institutions of all sizes with the tools needed to access the virtual trading floor.
What inspired the start of Cloud9 Technologies?
Cloud9 was founded in 2014 by a seasoned group of trading and technology professionals who realized that institutional traders needed better voice quality tools and greater access to voice metadata. As the industry transitions to a more digitized ecosystem, Cloud9 provides the optionality for traders to transition from traditional hardware trading turrets on their trading desks to a cloud solution in a seamless manner as C9 will interoperate with legacy trading tools and allow connectivity to all existing counterparties from anywhere at any time.
How is Cloud9 Technologies different?
Cloud9’s open and interoperable framework provides seamless connectivity to an unlimited set of potential users through its network of financial technology partners. The company’s expansive, rapidly-growing community and seamless integration with existing legacy communities empower increased workflow efficiency and greater access to liquidity providers. Cloud9’s open APIs provide both clients and channel partners with unparalleled flexibility and access to rich metadata, and as a result, are driving enhanced productivity across the industry.
What market does Cloud9 Technologies target and how big is it?
Cloud9 targets the global institutional trading community, which includes tier-one banks and brokers to hedge funds and asset managers.
How has COVID-19 impacted your business?
Since traders have been forced to work remotely over the last three months, Cloud9’s business has grown substantially, increasing by over 50% since March 1. Cloud9’s suite of communication, analytics, and transcription tools ensures anytime, anywhere access to the virtual trading floor.
What are the biggest challenges that you faced while raising capital?
The primary challenge was the ongoing COVID-19 pandemic but since the institutions involved see the long-term shift to digital, cloud-based tools, we were successfully able to close the round.
What factors about your business led your investors to write the check?
They see the Cloud9 value-add in providing remote access to the trading floor and ensuring that daily workflows are not compromised due to personnel not physically being on the trading floor.
They see the Cloud9 value-add in providing remote access to the trading floor and ensuring that daily workflows are not compromised due to personnel not physically being on the trading floor.
What are the milestones you plan to achieve in the next six months?
Cloud9 will be finalizing some additional partnerships in the months ahead to ensure that our voice trading and data APIs can be seamlessly integrated, and customers have optimal connectivity to counterparties and liquidity providers.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Listen to your customers and continue to innovate based on their feedback. Leverage your partnership network and collaborate.
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