Firm58, a Chicago-based provider of post-trade management software for the financial services sector, has raised $7 million in Series C funding from returns backers New World Ventures and North Bridge Venture Partners. The company previously raised $12.2 million.
Firm58 (www.firm58.com), a financial management software provider, today announced it has closed a $7 million Series C funding round led by existing investors New World Ventures and North Bridge Venture Partners.
The investment will be used to fuel Firm58’s growth and expansion to provide post-trade Software as a Service (SaaS) solutions to capital markets firms. The Chicago-based technology firm offers a suite of web-based solutions to manage fees, commissions, and payouts including billing, profitability and expense reporting, and compensation.
“This investment highlights our view that post-trade financial management is a rapidly growing need in these very volatile markets, especially in light of trading days like May 6, 2010,” said Adam Koopersmith, Partner at New World Venture Partners. “Like Enterprise Resource Planning (ERP) systems of the mid-90s, Firm58 is bringing a new level of automation to an industry still reliant on manual processes and outdated systems. Firm58′s solutions provide on-demand visibility into post-trade profitability and critical operational activities including commission and revenue management. We are proud to be a long-term partner of the company.”
New World Ventures and North Bridge Venture Partners are both current investors in Firm58, and led the Series B round in May 2008. This latest round of funding follows two record-setting quarters for the company, and brings the total funding amount to $19.2 million. Over the past two years, Firm58 has aggressively grown its subscriber base, while introducing new solutions including a commission sharing arrangement/soft dollar offering. Firm58 also provides electronic billing solutions for many of the world’s largest marketplaces.
“Firm58 anticipated a large opportunity very early and the company has carved out a leadership position that addresses the growing demand for post-trade management solutions,” said Jim Moran, Partner at North Bridge Venture Partners. “Today’s unpredictable financial climate is forcing capital markets firms to evaluate their current processes and make significant improvements in order to keep pace with trade volume, an aggressive regulatory environment, and cross-asset complexity. Firm58 has demonstrated an understanding of these market needs and we are energized to support the company’s vision to redefine the middle and back office.”
“Our existing investors continue to demonstrate confidence in our business and in the value we bring to a growing number of financial services companies,” said Nick Fera, chief executive officer at Firm58. “We are pleased to have such committed investors who share our vision and expectations for the future of Firm58 and look forward to executing our plans during this key growth phase.”
About Firm58, Inc.
Firm58 simplifies trade operations for capital markets firms. The company’s web-based financial management software manages the processes associated with fees, commissions and payouts to help increase a firm’s revenue, operational efficiency, and reduce costs. The Software as a Service (SaaS) platform automates middle- and back-office processes across asset classes to provide insight into daily profitability and protect revenue. Firm58 offers solutions for billing, profitability analysis, commission sharing arrangements/soft dollar management, compensation, and accounting. Customers include global market exchanges and execution venues, leading institutional brokerages, clearing and non-clearing broker-dealers, and proprietary trading firms. Founded in 2005, Firm58 is headquartered in Chicago with a branch office in New York, and is backed by New World Ventures (www.newworldvc.com) and North Bridge Venture Partners (http://nbvp.northbridge.com). For more information, visit www.firm58.com.