Xignite, Inc., the financial market data cloud provider, has announced  that it has secured $10 million in Series B funding from StarVest Partners, L.P. and John L. “Launny” Steffens of Spring Mountain Capital who is also the former vice chairman of Merrill Lynch.
The equity financing, which also included participation from previous investors Altos Ventures, Startup Ventures and Peter Caswell, will be used to support the company’s expansion of sales and marketing operations, and extension of the Xignite market data cloud platform. In particular, the company will be opening offices in New York City and Chicago and will be significantly expanding its Silicon Valley and China operations.
It seems there are still people willing to back small players in the financial data field, notwithstanding the fact that there are large players with lots of scope. According to the latest Outsell Insight (Xignite Sparks Cloud-focused Investors) there is still opportunity to sell financial market data beyond the expanding algorithmic trading world. Outsell analyzed Xignite as a mover in this space previously (see report 29 March 2011, The Quiet Disruptors in Financial Information ). Since April 1, 2011, Xignite has unveiled  NASDAQ and CME’s cloud services, hired a Google alumni to run partner solutions, began offering real time stock quotes on Microsoft’s Azure marketplace, and secured this latest round of funding.