Wall Street electronic-trading startup Trumid Financial went out hat in hand last year for more money to fund its expansion plans.
Business Insider got a look at Trumid’s investor presentation, which gives an inside look at what it’s like to start a venue that matches bond buyers and sellers using technology. As you can see from the slides, it’s not easy. Volumes, at least in the beginning, can be hard to find.
Nonetheless, Trumid landed $53 million from stock exchanges in Germany and Singapore in last year’s fundraising round, according to a company statement. The Asia exchange signed on as the lead investor to help fuel the startup’s push into that region. The size of the round was later increased to $60 million, according to a regulatory filing.
Already backed by Peter Thiel and George Soros, the company declined to comment on whether the billionaire investors participated in this round. A person close to the startup said it continues to enjoy financial support from its early investors.
Trumid looks to be one of the survivors in what has been a multiyear period of expansion and consolidation among dozens of electronic trading startups. Many were started by Wall Street traders disrupted by new technologies and shrinking trading desks.
The startup specializes in a type of corporate bond trade that’s bigger than $5 million, which can be difficult for investors to execute on electronic platforms, according to a March 2018 report from research firm Greenwich Associates. While these large trades only make up 1% of the total orders in the market on a given day, they make up over 40% of the notional traded.
While we obtained the pitch deck without Trumid’s help, the company provided some updated figures.