We’re thrilled to announce the closing of an initial investment round led by J.P. Morgan Chase, ICAP, and Barclays. This funding represents the confidence that these organizations have in Cloud9 to make a significant impact in the financial services sector, and it will enable us to meet industry demand.
Built on WebRTC and supported by Amazon Cloud Infrastructure, Cloud9 has quickly become the most widely used cloud-based voice trading platform due to its reliability, resiliency, and ability to streamline trading technology and hardware overhead. With increased adoption by the industry, we could save banks up to $1 billion in annual costs related to telecom equipment and services.
“Communications and collaboration products are undergoing a transformation with the introduction of cloud services and new technologies such as WebRTC,” said Jerry Starr, Cloud9’s CEO and co-founder.
“We’re thrilled to be able to offer traders a modern voice communications alternative, and are excited to be a part of the rapidly changing technology landscape.”
Since launching in 2014, Cloud9 has steadily grown and currently serves more than 2,000 traders at 350 firms in 21 countries, an indication that financial institutions are ready to embrace the next generation of communications technology. This investment by J.P. Morgan, ICAP, and Barclays represents the confidence that these organizations have in Cloud9 to make significant changes within the sector and will enable us to grow its business to meet industry demand.
“Cloud9’s technology is a very important advancement for the industry,” said Rick Smith, Head of Private Investments at J.P. Morgan Chase & Co. Inc. “It allows us to rethink our communication strategy for traders, and with it the economics of communication.”
Having seen the positive effects of Cloud9’s technology on their traders’ workflow as well as their own balance sheets, some of Cloud9’s biggest investors are also our biggest customers. ICAP is already using Cloud9 within its energy trading teams, while J.P. Morgan is working toward implementing the Cloud9 solution this year. Barclays also plans to work with Cloud9 in its development of the product and review opportunities where Cloud9 can help Barclays address expense and technological challenges related to voice trading.
“Working with our co-investors, J.P. Morgan and Barclays, we are investing in Cloud9 to help drive this long overdue evolution,” said Steve Gibson, CEO, Euclid Opportunities, ICAP. “In line with our philosophy to support early-stage firms that have the potential to transform legacy infrastructure, we believe Cloud9 will be at the forefront of a market movement to adopt this compelling technology.”
“Soft turrets are clearly the direction of travel for the industry and their security capabilities and compliance functionality are continually improving,” said Sean Charlton, Head of Voice at Barclays. “We look forward to seeing Cloud9 roll out across the market.”
For more information, see our coverage in the Wall Street Journal.
To learn more about Cloud9, watch this video.