Sapphire Ventures, the venture capital firm affiliated with enterprise software provider SAP, has acquired a minority stake in US-based online equity trading marketplace IEX, investing an undisclosed sum.
Launched in 2013 and seeded by strategic investors including mutual funds, hedge funds, and family offices, IEX runs an online trading marketplace that can be accessed by any qualified broker dealer.
The New York-based company’s platform aims to remove the timing advantages used by some traders to benefit from short-term trades through automated trading systems, and is currently seeking approval to register as a national exchange.
Regulatory filings indicate IEX had raised $100m in funding as of September 2014, after it secured $75m from MassMutual Ventures, the corporate venturing arm of insurance provider MassMutual, Bain Capital Ventures, Franklin Resources, Jim Clark and Steve Wynn.
Sapphire’s investment, announced yesterday, was closed on April 16 and will be used to fuel growth.
David Hartwig, managing partner of Sapphire Ventures, said: “Sapphire Ventures looks to partner with expansion-stage technology companies that are at the forefront of innovation and have the potential to become worldwide leaders. IEX fits the bill without question.
“As the company pursues registration as a national stock exchange, we are excited about the opportunity to tap into our vast enterprise network and unique relationships with SAP to further build upon IEX’s early success.”