Cloud9 closes on Investment J.P. Morgan, ICAP, Barclays

Cloud9 Technologies LLC has closed an initial investment round with J.P. Morgan, ICAP, and Barclays, the company said.

Cloud9 replaces traditional telephone-based trading hardware (turrets) to deliver secure, compliant, real-time voice communications for the trading community while adhering to stringent compliance and security standards required by financial professionals.

Built on WebRTC and supported by Amazon Cloud Infrastructure, Cloud9 has quickly become the most widely used cloud-based voice trading platform due to its reliability, resiliency, and ability to streamline trading technology and hardware overhead. Cloud9 believes that with increased adoption by the industry, it could save banks up to USD1 billion in annual costs related to telecom equipment and services.

Since launching in 2014, Cloud9 has steadily grown and currently serves more than 2,000 traders at 350 firms in 21 countries, an indication that financial institutions are ready to embrace the next generation of communications technology. This investment by J.P. Morgan, ICAP, and Barclays represents the confidence that these organizations have in Cloud9 to make significant changes within the sector and will enable the company to grow its business to meet industry demand.

Having seen the positive effects of Cloud9´s technology on their traders´ workflow as well as their own balance sheets, some of Cloud9´s investors are also its customers. ICAP is already using Cloud9 within its energy teams, while J.P. Morgan is working toward implementing the Cloud9 solution this year. Barclays also plans to work with Cloud9 in its development of the product for Barclays and to review opportunities where Cloud9 can help Barclays address expense and technological challenges related to voice trading.

Wachtell, Lipton, Rosen & Katz served as legal advisor to Cloud9 in connection with the investment. Fenwick & West LLP served as legal advisor to the consortium of J.P. Morgan, ICAP, and Barclays.

Cloud9 Technologies is a cloud communications service provider that delivers high performance voice and collaboration services designed for the unique needs of institutional customers. The company delivers its services from the cloud using software applications that leverages the Internet and advanced WebRTC technologies.