Databento, a platform revolutionizing access to financial market data, has successfully closed a $97 million Series B funding round. The financing was led by New Enterprise Associates (NEA) and saw significant interest, with over $300 million in total demand. This new capital injection will fuel the company's mission to eliminate long-standing bottlenecks in acquiring institutional-grade market data.
Addressing a Long-Standing Industry Challenge
For decades, financial firms have faced significant hurdles in accessing market data, often enduring months of procurement and integration. This process created a substantial barrier to entry and innovation for many market participants. Co-founder and CEO Christina Qi explained that Databento was built by industry practitioners to remove this friction entirely.
The company offers institutional-grade market data on an on-demand basis, fundamentally changing how teams acquire and utilize information. This approach streamlines workflows for everyone from quantitative traders to high-frequency market makers. Databento's platform is driving a significant shift in industry expectations for data accessibility and ease of use.
Impressive Growth and Market Traction
Since its launch three years ago, Databento has demonstrated remarkable growth, becoming a key player in the fintech sector. The company achieved profitability with just 24 employees and has seen its revenue multiply 6.65 times year over year. It has also maintained an exceptional enterprise logo retention rate of over 97% since its inception.
The platform is now the provider of choice for some of the world's most sophisticated financial firms, whose daily trading volumes are measured in trillions. In recent months, the company has more than doubled its active API users, reflecting its expanding influence. This rapid adoption underscores the market's strong appetite for a more efficient data solution.
Strategic Investor Confidence
Lead investor NEA moved decisively, recognizing Databento as a generational opportunity in the financial technology space. Rick Yang, Partner at NEA, praised the company's clear alignment of product, traction, and founding team. As part of the investment, Yang will join Databento's board as a director, with Danielle Lay serving as a board observer.
The investment from DRW Venture Capital highlights the platform's practical value for active trading firms. Kim Trautmann, Head of DRW VC, noted that Databento's combination of robust data infrastructure and developer-friendly tools is critical. This pairing shortens the path from concept to production, a crucial advantage in today's automated trading environments.
Future Expansion and Infrastructure Scaling
The newly secured capital is earmarked for significant expansion across multiple fronts. Databento plans to broaden its data coverage to include new asset classes and geographies. This strategic growth will enable the company to serve a more diverse and global client base effectively.
A major focus will be on scaling the company's core infrastructure, which is a key competitive differentiator. The firm will expand its colocation footprint to over 20 data centers worldwide to capture data directly at the source. Additionally, it has secured over 100 petabytes of new storage, more than doubling its previous capacity.
This $97 million funding round marks a pivotal moment for Databento, solidifying its position as a leader in the market data industry. The investment will accelerate its mission to democratize access to high-quality financial information for firms of all sizes. By continuing to enhance its platform and expand its global reach, Databento is poised to redefine the standards for market data acquisition worldwide.