VC Deal of the Day – Axioni Raises $18M Series A

Note from the Publisher:  If you want to get us buzzing at FintekNews world headquarters, mention VC or Blockchain, and we’re all lit up  Put both in the same sentence, and we’re practically levitating with excitement.  In our opinion, blockchain is the most transformative technology to emerge since the internet.  The applications are far and wide, and none more appropriate than the capital markets.  So it was with great excitement that we saw the announcement that blockchain startup Axomi has raised $18M. 

Their investors are impressive, too.  Wells Fargo, ICAPm Andreesen Horowitz, Digial Currency Group, Goldman Sachs, Y Combinator, Fintech Collective, and F-Prime.  This will be one to watch.

From their website:

“New York, December 22, 2016 — Axoni, a leading provider of distributed ledger technology to the financial services industry, announced today the completion of an $18 million Series A financing round led by Wells Fargo and Euclid Opportunities, ICAP’s fintech investment business, bringing Axoni’s total funding to date above $20 million. The financing round also included participation from Goldman Sachs, J.P. Morgan, Thomson Reuters, Andreessen Horowitz, FinTech Collective, F-Prime Capital Partners, and Digital Currency Group.

Axoni has established itself as a leader in distributed ledger technology for the financial services industry through a variety of successful, high-profile deployments, including the optimization of post-trade data management for credit default swaps, equity swaps, and foreign exchange derivatives, implemented in partnership with more than a dozen global banks and financial infrastructure providers. These customer use cases further validate how distributed ledger technology has the potential to streamline multi-party workflows, reduce reconciliation costs, and provide greater transparency to financial markets.

“We are delighted to have strategic support from global leaders in financial services,” said Greg Schvey, CEO of Axoni. “The changes already underway based on distributed ledger technology will have a profoundly positive impact on the industry. Axoni is excited to help drive that progress alongside our investors and clients.”

“Axoni has developed proprietary Smart Contract technology and has successfully validated this technology in a variety of Capital Markets use cases. We have been impressed by the high-caliber team, their deep domain knowledge, and disciplined approach to product development. We are delighted to support Axoni in the next phase of their development,” said C. Thomas Richardson, Head of Market Structure and Electronic Trading Services at Wells Fargo Securities.

“Since we started working with Axoni over a year ago, we’ve been impressed with their knowledge of financial services, as well as their expertise with how distributed ledger technology can intersect with other evolving technologies. They have quietly built their credibility with key financial players and have emerged as one of the leaders in this rapidly evolving space,” said Richard Kerschner, Chief Corporate Development Officer for ICAP Post Trade, Risk and Information Services.
Legal representation for Axoni related to the financing included Buhler Duggal & Henry LLP, as well as Latham and Watkins, LLP.

About Axoni

Schvey, Inc. (d/b/a “Axoni”) is a New York-based capital markets technology firm that specializes in distributed ledger infrastructure. The company was founded in 2013 by a team of distributed ledger technology entrepreneurs and cryptography specialists. Axoni’s product offerings include distributed ledger technology deployments, bespoke smart contract development and analytics tools.

About ICAP

ICAP is a leading markets operator and provider of post trade risk mitigation and information services. Through Euclid Opportunities, ICAP’s fintech investment business, ICAP supports innovative firms in the areas of post trade risk management, data and financial market applications.

ICAP announced in November 2015 that it intends to sell its global hybrid voice broking and associated information business to Tullett Prebon, including ICAP’s associated technology and broking platforms (including iSwap and Fusion) and certain of ICAP’s joint ventures and associate companies. On completion, the ICAP brand will be transferred to Tullett Prebon and the remaining ‘NewCo’ business will be renamed NEX Group plc. Subject to the satisfaction of remaining conditions, ICAP and Tullett Prebon expect the transaction to complete on 30 December 2016. NEX Group plc will be headquartered in London and will employ 1,800 people in offices worldwide.