Fintech Startup that is building a modern infrastructure for capital markets Clear Street has secured a $270 million series B fund to replace outdated infrastructure.
The funding round which brought the fintech company’s recent valuation to $2 billion, was led by Growth equity firm Prysm Capital. The funds raised will help the startup to continue to grow its team and form new partnerships to meet its goal of improving access across the capital markets.
Speaking on Clear Street’s mission, the company’s co-founder and CEO Chris Pento said, “The company was founded to replace the outdated infrastructure being used across capital markets, starting with a prime brokerage platform for institutional investors. The public U.S. securities industry, which moves trillions of dollars a day, still relies on mainframe technology from the 1980s.
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“These legacy systems are entrenched in manual processes and siloed data, resulting in costly errors and expensive technical debt. For many firms, replacing these antiquated systems would be like removing the engine from a plane in mid-air. It’s time-consuming and difficult to execute with fragmented technology.”
As clients are demanding better technology and service, Clear Street is stepping up to address this issue through its cloud-native platform that provides services and data that investors need to compete in today’s market. The startup proprietary technology platform adds significant efficiency to the market while focusing on maximizing returns and minimizing risk and cost for clients.
Clear Street takes proven technology from the Silicon Valley world and applies it to finance. Its tech stack utilizes modern cloud-native infrastructure, including resilient service orchestration, event-driven real-time processing, and scalable data warehousing, a sharp contrast to the batch processing offered by mainframes.
The startup’s entire suite of software systems is built upon this consistent and cohesive technology stack, enabling the components to communicate seamlessly and stay in sync, eliminating the need for tedious reconciliation processes.
Over the past 12 months, Clear Street with its headquarters in New York has expanded its leadership team across business areas and has built a team of nearly 100 engineers to support product development and meet client demand. Under the leadership of Chris and Sachin, the fintech startup has built a cutting-edge platform that competes with established players in the industry.
Clear Street’s goal is to give all market participants, from emerging managers to large institutions, the tools, and services they need to compete in today’s fast-paced markets. The company understands that to keep up with the accelerating pace of modernization, firms will need to invest in technology to meet the needs of investors and regulators, while noting that those who do, will be part of building the modern, scalable future of capital markets thereby improving access, speed, and service for all participants.
With markets moving faster than ever, Clear Street makes around 6,000 updates on its platform every year and is constantly redefining its processes to help customers move with today’s fast-paced markets.