Alpaca raises a $52 million Series C to bring API brokerage platforms to new markets
For all the recent turmoil, the US stock market is very attractive to investors around the world simply because of its size and liquidity. However, it remains extremely difficult for investors in other regions around the world to trade stocks on US exchanges. San Mateo-based startups are called alpaca By providing APIs to financial services companies, we have quietly exploited the opportunity to sell trading services to our consumer user base.
Today, Alpaca serves more than 5 million securities trading accounts and claims it has over 200 financial clients in 40 countries. Based on its traction, the Alpaca said Wednesday it raised $52 million in the Series C funding round to expand to more foreign markets, including the Middle East, Europe and Asia.
Investors in the round include new and return backers such as Derayah Financial, 850 Management, National Investments Company Kuwait, Unbound and Portage Ventures.
The San Mateo-based startup has just opened a new office in New York and is planning to use fresh cash to obtain more regulatory licenses in various regions, similar to the Bahamas that it already has in the US, Japan and its co-founder and CEO Yokakawa.
“Funding (recently) is extremely important because it’s a catalyst for going to global infrastructure, not a fixed US-only company or platform,” Yokokawa said.
Alpaca will also use its revenue to develop new products, add non-US products such as European and Asian stocks, supporting 24/5 trading of US stocks.
Series C is increasing the company’s total funding to $170 million.
It was established by Yokogawa River, a former investment banker in the United States and Japan, and by Yada Upper Limit (CPO). alpaca Financial services companies and FinTech have begun selling software that can be plugged in for investment groups and used for electricity trading.
“We had to first create a globally functional infrastructure (2018) that allowed people outside the US to create platforms similar to Robinhood and Wellsfront that comply with local regulations and contexts.” “But someone has to do the tough, boring job of ensuring that regulations and compliance are correct, because (eventually) as you know, if you want to access US products, it flows to the US. That’s what we do.”
The company has since expanded its offering stocks, ETFs, options, bonds and high-yield products to be included in the US dollar in IRA accounts. Alpaca has teamed up recently Kraken Allow Crypto Exchange users to exchange US stocks and ETFs in some states.
Series C is about 18 months After Alpaca secured Series B expansion in October 2023. Since then, Yokokawa said the revenue and assets of the detained startups have tripled and their trading volumes have quadrupled. It has also become a completely self-transparent broker dealer with DTCC membership and the CEO has made it possible to handle all trade clearing and settlement processes in-house, including risk management and compliance.
Social Seas Interactive broker As his closest competitor in terms of international presence and technical capabilities. However, he says the main difference is that interactive brokers were founded in 1978 and lead to technology developed based on their legacy systems.
“If a new bank wants to improve its products for its customers, it prefers to work with modern partners as it wants modern solutions. So, this is how we are currently gaining market share.
Alpaca currently employs around 200 people, most of whom work remotely from various locations around the world.