OpenGamma secures $6 million Series B to power open source for financial markets

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One of the biggest misconceptions about the European tech scene is that it should operate exactly like the Silicon Valley tech scene. This is just plain dunderheaded. The truth – far too too seldom stated – is that as well as operating in a ‘Valley’ manner, equally European startups can come out of a sector-specific business context. Thus, music startups like Last.FM, Songkick and others have continued to emerge from London and Berlin where the music and creative scene in Europe is hugely strong. London is also becoming a center for fashion startups like Editd and Garmz. In that same vein, London is a big financial centre.

To that end today OpenGamma is a new kind of financial startup, based in London, which has an open source analytics and risk management platform for the financial services industry. Today it’s completed a $6 million Series B round of equity financing led by FirstMark Capital, a New York-based VC. Accel Partners joins the round as a return investor. OpenGamma previously had a Series A round of $6m from Accel Partners.

OpenGamma will use the extra funding to power up sales, marketing and commercial operations, open up global markets, reach out to the open-source community and build out the platform. It will also open an office in New York City to access the 500,000 financial services professionals in New York.

Lawrence D. Lenihan, founder and managing director at FirstMark Capital, who will also join the board, says the global economic crisis was in part a result of the financial system’s inability to manage real-time risk across disparate but connected asset classes and geographic regions – so having an open source platform like OpenGamma is the next phase of linking these up.

OpenGamma has an open architecture to allow financial services firms to develop analytics applications aimed at traders and risk managers. This open source approach is designed to disrupt the proprietary software platforms. To me this reminds me of the kind of things Everbread and Tradeshift are doing in travel and invoicing respectively.

Expect to see many more open source platforms and third party apps develop in this space. There is a great deal of money in this sector and London tech companies, increasingly connected to the City, are well aware of this.

  • Anonymous

    Wondering if it is an OpenArchitecture or an OpenSource software solution. The former sounds proper the latter sounds different. Looks interesting.

    • KirkWylie

      We’re actually both. The core platform will be released under an Open Source license (for more as to why we’ve not released it yet please see this article from our blog: ). However, it’s built as a completely open architecture so that you can individually use or replace any component in the system.

  • Anonymous

    Wondering if it is an OpenArchitecture or an OpenSource software solution. The former sounds proper the latter sounds different. Looks interesting.

  • OpenGamma Secures $6 million Series B To Power Open Source For Wall Street | JetLib News

    […] Read the rest of this entry » […]

  • Fm

    This article has told me absolutely nothing in regards to what this company does… you’ve re-hashed a press release and related it to the bloody silicon roundabout propaganda. You could have told me what the proprietary platforms this company are allegedly disrupting… More detail required

    • Mike Butcher

      Please point out where I used the word roundabout.

  • Anonymous

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  • Richard Kastelein

    XBRL based?

    • KirkWylie

      There currently isn’t any XBRL capabilities in the platform, although as a future source of corporate action data (which is really the focus of XBRL, not the type of risk and analytics OpenGamma is designed for) rather than a core component of the platform.

  • OpenGamma Raises $6 Million In Series B

    […] based in Europe that has an open source analytics and risk management platform. The company has raised $6 million in Series B financing led by FirstMark Capital. Accel Partners has joined in this round of funding. […]

  • Max Hwang

    I hope they did customer validation with this. Back when we sold to financial institutions, they wouldn’t let us reveal which brand of bottled water they drink, citing competitive advantage. Getting a collaborative community is the core of any open source software and doing that will be very very difficult given the nature of that industry.

    • KirkWylie

      Hi, Max,

      We’ve done extensive customer and market validation on this precise area. While we don’t expect that many banks or hedge funds will allow their developers to submit code, we do expect that other ecosystem partners will do so.

      In addition, banks today are very well aware that 80% of the code they currently developer is not proprietary in nature; it’s broadly similar to what other firms have done. What we’ve done is built a platform that handles that 80% that’s similar across firms, allowing them to focus on the proprietary part and plug it into our open architecture.

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