The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Pico Closes $135 Million Series C with Eye on Strategic Acquisitions

Pico’s addition of Intel Capital as a new investor – announced last week – completes the trading infrastructure specialist’s $135 million Series C investment round, setting in place the foundation for its next phase of growth. Encouraged by the success of its 2018 purchase of Corvil, Pico intends spending at least some of that cash on strategic acquisitions.

Intel Capital, Intel Corp.’s global investment organization, joins a number of new and existing investors in Pico’s Series C, among them Asia-based strategic partner EDBI and new investor CreditEase Fintech Investment Fund. Other key strategic investors and Pico clients include Goldman Sachs, J.P. Morgan, Wells Fargo, UBS, Nomura, DRW Venture Capital, Chicago Trading Company, Capital Markets Trading and Simplex Investments.

According to Jarrod Yuster, Pico’s chairman, founder and co-CEO, Intel Capital’s investment was unsolicited, with conversations originating from an investor referral as well as Intel’s relationship with Corvil, as an important partner providing processors for its hardware appliances. Yuster says working with Intel Capital follows Pico’s approach over the past 11 years of working with strategic investors who bring to the table access to clients, partnerships, relationships and technologies, rather than with purely financial investors.

Indeed, Pico recently introduced Intel’s second-generation Xeon Scalable platform with built-in AI acceleration in its fifth-generation analytics appliance. With this latest funding round, Pico and Intel will collaborate to deliver a 100Gbps network data capture and real-time streaming analytics platform for trading. Early-stage development is also underway around building a financial services lab, where Pico and Intel can work with top clients to incubate new concepts around AI processing, machine learning, network and trade analytics, and cloud monitoring.

Yuster says the new funding will allow Pico to “continue to realize our differentiating strategy of investing in building the most globally comprehensive, robust, scalable and high-performance infrastructure in the financial services industry that meets clients current and future needs.” He points to recent developments including increased capacity, resiliency and diversity of the PicoNet global financial services network and introducing 100Gbps dark-fibre and 40Gbps native bandwidth access underpinned by a pure optical backbone network.

As a result, Pico’s real-time and machine intelligence solution, Corvil Analytics, is now enabled for 100Gb networks to monitor new higher throughput environments. The new funding will allow Pico to continue investing in its technology platform with automation tools for quicker and deterministic delivery with accuracy and oversight.

“Fortunately, the Corvil acquisition has gone extremely well, with the business growing more than 40% year-over-year,” Yuster says. “This success has helped fuel our capital raise, giving opportunities for future strategic acquisitions.

He adds: “We have seen significant interest in Corvil Analytics driven by increase in volatility and message traffic volumes along with the need for 100Gb packet capture and network monitoring. Additionally, Corvil’s rich data capture and trade analytics provides substantial opportunities for quantitative traders, AI data scientists, developers and business units to leverage Corvil’s functionality as a data source and to gain insights into execution quality and algorithmic trading development. This is a broad audience and substantial growth opportunity.”

Related content

WEBINAR

Recorded Webinar: Trade surveillance: Deploying monitoring and surveillance capabilities for today’s new normal

Let’s face it: The old ways aren’t coming back. A plethora of challenges brought on by the covid-19 pandemic, coupled with unrelenting market volatility and uncertainty, have pushed financial service firms to look for rigorous monitoring and surveillance solutions to meet the demands of the emerging trading landscape. Working from home (WFH) has increased the...

BLOG

UOB Deploys Chronicle EFX for Electronic FX Pricing and Trading

Asian bank United Overseas Bank (UOB) has deployed Chronicle Software’s EFX solution in Singapore to power its FX pricing and trading engine. By deploying EFX and taking advantage of reduced latency via colocation connectivity, UOB aims to improve price discovery to provide customers in the ASEAN region and across its global network with access to...

EVENT

RegTech Summit New York City

Now in its 5th year, the RegTech Summit in NYC explores how the North American financial services industry can leverage technology to drive innovation, cut costs and support regulatory change.

GUIDE

Trading Regulations Handbook 2021

In these unprecedented times, a carefully crafted trading infrastructure is crucial for capital markets participants. Yet, the impact of trading regulations on infrastructure can be difficult to manage. The Trading Regulations Handbook 2021 can help. It provides all the essentials you need to know about regulations impacting trading operations, data and technology. A-Team Group’s Trading...