Databento Inc., a market data platform founded in 2019, secured $97 million in new funding, driven by over $300 million in investor demand, to grow its real-time and historical data services and expand globally.
- Raised $97 million with over $300 million in investor demand
- Expanding data coverage and international presence
- Revenue growth of 6.65x year-over-year and 97%+ client retention
What happened
Databento Inc., a market data platform startup, announced it has raised $97 million in a funding round heavily oversubscribed by investors, who showed interest exceeding $300 million. The fresh capital will support the company’s plans to broaden its data coverage across various asset classes and expand internationally. Founded in 2019, Databento offers real-time and historical market data on futures, options, and equities through a single API, removing traditional procurement barriers.
Distinct from typical redistributor models, Databento installs its own servers inside exchange data centers to capture data directly at the source. The company intends to expand this architecture to over 20 data centers and increase storage capacity by more than 100 petabytes—more than doubling its existing infrastructure. The funding round was led by New Enterprise Associates, with participation from DRW Venture Capital, Redpoint Ventures, Tribe Capital, and existing investors.
Why it matters
Access to market data has long been a costly and time-consuming process for trading and financial firms, typically involving lengthy procurement and integration efforts. Databento’s model dramatically shortens this timeline by providing on-demand, institutional-grade market data accessible via API, which eliminates fixed costs and upfront commitments common with incumbents like Bloomberg and London Stock Exchange Group.
The company’s strong traction is demonstrated by its 6.65 times year-over-year revenue growth, doubled active API users in recent months, and an enterprise customer retention rate consistently above 97%. Achieving profitability with just 24 employees underscores both efficiency and product-market fit. Its founder, Christina Qi, brings substantial trading experience, having previously led a high-frequency trading firm managing billions in daily volume.
What to watch next
Databento’s focus will be on scaling its data infrastructure globally and expanding coverage to new asset classes, which could increase its appeal among a broader range of financial market participants. Its direct exchange connectivity strategy and growing storage capacity position it well to meet increasing demand for timely and comprehensive market data.
The involvement of prominent investors and new board members from New Enterprise Associates signals confidence in the company’s potential to disrupt entrenched market data providers. Future milestones to monitor include international market entries, new product launches, and further revenue and user growth as Databento drives adoption of API-based market data solutions.