Eventus Systems will deploy proceeds from a recent fundraise toward achieving scale, according to Travis Schwab, CEO of the trade surveillance fintech firm.
“For us, it’s about scaling the organization across all aspects of our company, with emphasis on market sales and marketing, product and engineering,” Schwab said.
Earlier this week, Eventus closed on a $30 million Series B funding round, led by Centana Growth Partners. DRW VC, a venture capital arm of principal trading firm DRW, CMT Digital, existing investors Jump Capital and LiveOak Venture Partners, along with several new strategic investors, also participated.
To date, Eventus has raised $48.5m, including a $10.5m Series A growth capital funding round in February 2020.
The latest capital injection should help Eventus achieve its plans to further scale across the organization, including growing its sales, product and engineering teams, building further on its flagship Validus platform, expanding its product suite across asset classes, and introducing new financial risk applications to the platform.
The amount of data that market participants are dealing with on a day-to-day basis continues to grow, Schwab told Traders Magazine. “Our clients are trying to handle data and volatility, and every single client has a data integration challenge that we work to help them solve,” he said.
“We continue to add asset classes, geographies and functionality to our existing product lines and are also looking to leverage the investment into additional areas that make sense for our company,” Schwab said.
According to Matt Alfieri, Principal at Centana Growth Partners, Covid-19 has increased the need for trade and communications surveillance software.
“There’s an opportunity to expand existing customer relationships. One of the strengths of Eventus is their ability to work with multiple asset classes. Where they’ve sold a futures use case initially and now can expand into fixed income, for example. And we’ve seen some really good signs of that expansion within their existing customer base where customers have gone on to add multiple asset classes,” Alfieri said.
“That is one of the interesting uses of proceeds here, just continuing to sell additional asset classes into the existing customer base, find new customers, as well as push them further into other geographies,” he added.
Validus is a comprehensive platform that combines surveillance, market risk, algo monitoring and AML/transaction monitoring.
It’s used by tier-1 banks, broker-dealers, futures commission merchants (FCMs), proprietary trading groups, market centers, buy-side institutions, energy and commodity trading firms, and regulators.
“We have a post trade financial market risk application, we have transaction monitoring, and we have algo monitoring – those are applications that we support, though our business is dominated in the trade surveillance space. Those other applications are going to get more investment because there’s a good addressable market for us,” Schwab said.
He added that in the next few months, Eventus is planning to more than double its employee base, hiring talented, experienced people across the globe and across the organization.
“We have a host of new product initiatives that we are rolling out. We are also looking at leveraging that big data set we normalize for clients in different ways.”