Alpaca Raises $52M in Series C Funding to Expand Globally

Alpaca, a U.S.-based self-clearing broker-dealer and brokerage infrastructure company, has successfully raised $52 million in its Series C funding round. This significant investment was announced from the company's new office in New York City and saw participation from both new and existing investors, including Derayah Financial, 850 Management, National Investments Company (NIC), Unbound, and Portage Ventures. The funding round comes at a pivotal moment for Alpaca, which has been expanding its product offerings and global reach.

2024 was a landmark year for Alpaca, marked by the launch of several key products. These include US options trading, High-Yield Cash accounts, IRA accounts, and FIX API. Additionally, Alpaca became a self-clearing broker-dealer with the Depository Trust & Clearing Corporation (DTCC). These developments have positioned Alpaca as a leading player in the brokerage infrastructure space, supporting over 5 million brokerage accounts across more than 40 countries. The company's services are utilized by a diverse range of clients, from enterprise institutions to smaller fintech companies.

With the Series C funding, Alpaca aims to further its global expansion into major markets, including the U.S., the Middle East, and Asia. The company's powerful enterprise-grade APIs and self-clearing custody services have made it a preferred partner for firms seeking to deliver a fully featured investment experience. Alpaca's co-founder and CEO, Yoshi Yokokawa, emphasized that the investment is a testament to the dedication and commitment of the team and the integrity of the company’s partnerships. He also highlighted Alpaca's mission to help its partners and customers around the world discover and access best-in-class financial tools and infrastructure.

One of the primary uses of the new capital will be to accelerate the release of Alpaca's 24/5 trading and fully paid securities lending services. These offerings are designed to meet the increasing international demand for 24-hour market access. The introduction of 24/5 trading, which allows investors to trade almost 24 hours a day, five days a week, across most U.S. markets, is anticipated to become a significant differentiator as global activity in the U.S. markets extends beyond the standard trading day. This move aligns with the growing trend of international investors seeking flexible, always-on investing options.

In addition to these new services, Alpaca has made significant enhancements to its platform in 2024. These include the introduction of Local Currency Trading API, Fractional Share Trading, and improved entity account onboarding. These upgrades have expanded the capabilities of Alpaca's platform, enabling more partners around the globe to offer advanced investment solutions. The company's growth and success are further evidenced by its strong support from top investors, who have raised over $170 million to date. This includes a global group of investors such as Spark Capital, Tribe Capital, Social Leverage, Horizons Ventures, SBI Group, Derayah Financial, Elefund, and Y Combinator.

Alpaca's ability to merge self-clearing infrastructure with API-first technology has made it a standout in the fintech market. The company's vision of a global, always-on financial market has garnered strong support from investors, reflecting their belief in Alpaca's innovative approach and commitment to delivering top-tier financial services. With the new funding, Alpaca is well-positioned to continue its expansion and solidify its role as a leader in the brokerage infrastructure industry.