Why Billionaire Steven Cohen’s Firm And JPMorgan Bet On A Startup Ripping Out Trading Desk Phones
When Wall Street is bustling with trades, banks that want to scale up will shell out $10,000 for a new trading phone and desk. Adding a floor? That’ll run you $500,000, says CEO Jerry Starr. The same costs will come up if a company needs a second trading floor to protect its business.
Starr’s company, Cloud9 Technologies, believes there’s no need for a phone anymore when traders can use something easier: cloud computing. His two year old startup claims to have an app that can handle those same calls and add security and compliance. And while the market is still early, Cloud9 is gaining the support of the financial establishment with each dollar it raises.
The latest firm to stand with Cloud9′s app is billionaire Steven Cohen’s firm Point72 Asset Management. The firm, which employs more than 1,000 people and manages $11 billion in Cohen’s assets, invested in Cloud9 directly through a new startup-investment unit called Point72 Ventures and is rolling out the product in its expansion into new offices in Europe and Asia. The investment closes out a $30 million funding round led by JPMorgan and including Barclays and ICAP.
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