Risk Focus Inc., the leading provider of regulatory reporting control and compliance solutions to the global capital markets, raised USD 750,000 through the issue of a convertible note to a group of private investors, in a round that was led by Jon Barlow, FinTech entrepreneur, investor and advisor. This is the first time that Risk Focus has raised external funding, having been self-funded and profitable since it was founded in 2004. The note is capped at USD 2 million, allowing Risk Focus to further increase funding in this round.
Jon Barlow, a successful investor and entrepreneur who founded and grew Eaglewood Capital before successfully selling it to Marshall Wace, says, “The team at Risk Focus impressed me from day one. They are clearly experts in their chosen domain and have an impressive roster of clients. In a relatively short time they have dominated a new space in their clients’ infrastructure with tools that help at every point in the trade reporting lifecycle. I am excited to be able to help them capitalize on their success and to grow.”
Brian Lynch, CEO of Risk Focus, says, “Four years ago we made a commitment to ‘productize’ the intellectual property that we had accrued through numerous, successful implementations. In 2014 we brought Validate.Trade to market, quickly setting the industry standard for validation of regulatory trade and transaction reporting. We realized that in order to capitalize on this momentum and to meet the needs of our clients, we had to rapidly expand our product coverage to include the main global jurisdictions and reporting repositories. Our range of products is designed to support clients as they navigate this changing landscape. We are adding new products, such as Load.Trade which helps buy- and sell-side firms to get high-quality reporting data to their chosen repositories. We are also working on a number of industry partnerships which will increase our footprint in the global regulatory reporting domain.”
Lynch adds: “Increased innovation and being the market leader require capital, so we are very encouraged to have a supportive group of investors who understand the potential of Risk Focus and want to join us for the ride. We have opted not to fill the note in this first round, and we will bring in additional investors as required, focusing on partners who add strategic value to our firm.”
In the next couple of years Risk Focus clients will be required to meet new regulations, including SEC Security Based Swap Reporting [SBSR], a major ESMA EMIR Rewrite, MiFID II / MiFIR, ESMA Securities Financing Transaction Regulations [SFTR], along with others, such as SMMD, MMSR; there are also minor changes to existing reporting in Singapore, Hong Kong and Canada. Risk Focus gives financial institutions the tools to meet these requirements, now and in the future.