Clear Street Announces $270 Million Addition to Series B
A FinTech that provides financial infrastructure to various businesses has added to their already-impressive funding round. Earlier this week, Clear Street announced that it had raised $270 million. The additional funds bring the firm’s Series B to a total of $435 million. This latest tranche came from Prysm Capital and valued the company at $2 billion.
A previous $165 million portion of the round also included participation from NextGen Venture Partners, IMC Investments, Walleye Capital, Belvedere, NEAR Foundation, McLaren Strategic Ventures, and Validus Growth Investors. With these latest funds, Clear Street says it plans to expand into new markets as well as new asset classes. Additionally, it intends to offer more solutions for clients looking to migrate to the platform.
New York-based Clear Street is a FinTech that aims to improve financial infrastructure for institutions. This includes offering clearing, custody, execution, and prime brokerage platforms. According to their site, these services are currently used to trade more than $10 billion daily. Recently, the company also launched capital introduction and repo businesses while enhancing its securities lending capabilities among other upgrades.
Offering a status update on the company overall, Clear Street Group co-founder and CEO Chris Pento said in a statement, “Our team has made incredible strides since our inception in 2018, and this additional funding is further testament to the value that we bring to our clients. Over the past year, the number of institutional clients on our platform increased by 500% and our daily transactional volume increased over 300%.” Pento added, “We’re excited to keep this momentum with support from our continued partnership with Prysm.”
Speaking to Prysm’s investment in Clear Street, the firm’s co-founder and partner said, “The Prysm team seeks to invest in disruptive and innovative companies that execute at a premier level, and Clear Street certainly meets those criteria. Clear Street’s cloud-native platform and technology-driven approach address a very real need in capital markets today and truly set them apart from competitors. We have tremendous confidence in Clear Street’s outlook, and look forward to continuing our partnership in the Company’s next phase of accelerated growth.”
Clear Street’s growing Series B and $2 billion valuation once again highlight the strength of FinTechs that work behind the scenes to power offerings from other institutions. In fact, as this trend continues, we’ve seen an increasing number of consumer-facing startups pivot to similar models. While it may not become a household name, with an additional $270 million in its coffers and a growing workforce it seems that Clear Street could well grow into a major FinTech player in the coming years.