Emerging global technology provider of cloud-based voice trading communication solutions, Cloud9, which raised a series A round from a consortium of investors including major banks and brokerages earlier this year, shares with Finance Magnates its current developments.
Finance Magnates reported in mid-April when Cloud9 raised funding from investors such as J.P. Morgan, ICAP, and Barclays, and others, as part of its latest round to help expand its product scope into other asset classes.
Recent growth and deals
Since last year, the company’s daily active users have grown by over 350%, as defined by the number of people that log on daily to Cloud9’s products. The firm also secured partnerships with several large companies, including the world’s fourth biggest energy firm PetroChina with full turret replacements for its US offices.
Cloud9 is headquartered in New York, and has offices in London, and offers its C9 cloud-based virtual turret solution as a replacement for traditionally-bulky legacy turret hardware – which it is helping firms swap-out for a digital solution. Turrets are used by banks and brokerages with medium-to-large trading desks or other operations where having an integrated communications system is imperative for operations including executing voice-brokered transactions.
On 16 occasions, the company had made full replacements of legacy turret systems for clients with its Cloud9 platform, as explained by people familiar. The company’s communication products which focus around voice solutions for both financial services companies and other industries had over 110,000 calls made per day on average over the last month, as shared with Finance Magnates by a company spokesperson.
Firms like Petrochina find value in Cloud9 because they have access to a large community of counterparties via our global directory.
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Voice broking through Brexit
In response to questions related to the recent volatility from Brexit the day after the UK’s EU referendum result rippled financial markets, and which caused an uptick of 20% in calls initiated on the firm’s turrets, Greg Kenepp, President of Cloud9 Technologies, shares his views:
“There is a historic precedent for increased voice activity during extreme market events. Several tier 1 banks recently sent letters to their clients saying they wouldn’t be able to execute some electronic trades due to higher volatility, and research by Greenwich Associates show that institutional investors in Europe, for example, prefer to trade by phone.”
Regarding recent deals the company landed, Mr. Kenepp explained: “Firms like Petrochina find value in Cloud9 because they have access to a large community of counterparties via our global directory. They usually hear about us through another firm they do business with, and then quickly use the Community feature to connect with, and in some cases actually expand their network of trading partners.”
When asked what the specific sales drivers were to help land the large accounts, Mr. Kenepp added: “Our initial growth has been the result of a trader or broker finding out about Cloud9 – and then telling his counterparties about us, and it has just perpetuated in that way. Cost, sound quality, and mobility have been strong drivers of adoption. Our sales team has also made strong inroads with regard to leveraging those relationships and approaching firms directly.”
Mr. Kenepp concluded in true sales spirit: “Once a firm sees how easy it is to connect on Cloud9, and hears the difference in the audio quality – they are hooked.”