In an oversubscribed Series B funding round, Databento raises $97 million to expand its market data infrastructure platform. The loan was led by New Enterprise Associates (NEA). There was huge institutional interest, with the round being oversubscribed by $300 million.
As well as existing and strategic backers such as DRW Venture Capital, Redpoint Ventures and Tribe Capital. Databento offers real-time and historical market data via an API all wrapped up in one. The new capital infusion will enable the firm to broaden its asset class, particularly in cryptocurrencies.
Transforming Access To Institutional-Grade Market Data
Financial data is a frustrating challenge for trading firms. In traditional procurement, the negotiation process takes many months of legal wrangling, technical integration and high initial price tags.
Co-Founder Christina Qi. Image Credit: Databento
With Databento, this is addressed with a developer-friendly, pay-as-you-go solution. Christina Qi, who is one of the founders and the CEO, started Databento to remove this overhead. Previously, Qi worked for high-frequency hedge fund Domeyard LP, which processed billions of dollars per day.
Her experience in quant trading shaped Databento’s architecture. The platform allows users to get institutional-grade data on demand within minutes. This pay-per-use strategy removes the massive capital barriers that typically block smaller firms and independent researchers.
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Expanding Institutional Footprint and Crypto Integration
Databento will use the new capital to scale its data infrastructure worldwide. The company colocates its hardware servers at major global exchanges to capture raw data straight from the source.
Following this funding round, Databento plans to expand its presence to more than 20 data centers globally. It has also added 100 petabytes of storage capacity to its footprint. A major part of this growth centers on digital assets.
Databento already delivers cryptocurrency futures data from the CME and CFE. The platform also offers packet-capture-level data for crypto derivatives. With the Series B capital, Databento is set to integrate Binance spot, futures, and options data. This integration bridges traditional finance and the decentralized crypto ecosystem under a single API.
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Strong Financial Performance and Traction
In an oversaturated VC market, Databento has been gaining a lot of traction. The fintech startup is profitable with a team of only 24 employees. It has greatly increased the number of active API users recently.
Databento grew its year-over-year revenue by 6.65x. The firm has also maintained a 97% enterprise logo retention rate since launch. As a result of this investment, NEA partners Rick Yang and Danielle Lay will join Databento’s board.
The company currently serves over 3,000 firms globally, supporting sophisticated trading desks whose volumes are measured in trillions of dollars. Databento is also changing how firms build automated workflows. The platform partners with open-source tools like NautilusTrader.
This enables quantitative researchers to create hybrid setups to oversee conventional possessions and crypto markets. Databento is a developer-focused experience that owns the entire data stack from end to end without compromising speed. Trading desks don’t need to maintain extensive in-house data pipelines to test and run complex algorithms anymore.
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