24 March 2017
Visit EBAday.com

CME sets up tech investment fund

07 May 2014  |  4617 views  |  0 CME

The Chicago Mercantile Exchange has gone public about the launch of a new venture capital fund to invest in promising technology start-ups.

The new Liquidity Ventures arm of the giant Exchange operator launched quietly last year under the stewardship of business development MD Mark Fields.

In a post on the company's OpenMarkets Website, Fields' explains the rationale behind the move: "The idea is to harness the power of entrepreneurship and the rapid pace of technological advancement to grow our industry and our business. The goal of our fund is to supplement the traditional route of buying the product of an established company by taking stakes to ensure the success of ones that have the potential for future large-scale impact."

According to Crain's, the fund made its first investment in March in a data encryption service company it won't name. A second investment, in Vancouver, British Columbia-based quantum processor software company 1QB Information Technologies Inc., is pending.

The CME is not providing details on the size of the fund, but it is likely to be substantial, with the company looking to invest between $500,000 and $5 million in each new venture.

The Exchange operator is following the lead taken by top banks such as BBVA and Sberbank, which have created their own corporate venture capital arms to take stakes in and provide mentoring to fresh, new digital start-ups.

Says Fields: "Technological innovation has never been more important in the financial services industry. By investing in ideas and innovation outside the walls of the firm, (we're) not just interested in acquiring technology, but in seeing that technology succeed in the biggest way possible.

"That means introducing technology to entire industries, advising young companies on practical applications, and providing valuable resources. And importantly for all those tech startups, it means another place to look when they're seeking that all-important early round capital."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Former Visa president Morris launches fintech venture fund

Former Visa president Morris launches fintech venture fund

27 March 2014  |  6452 views  |  0 comments | 8 tweets | 6 linkedin
Bank of Ireland and State Street join Irish fintech accelerator

Bank of Ireland and State Street join Irish fintech accelerator

11 March 2014  |  5754 views  |  0 comments | 7 tweets | 2 linkedin
Barclays takes fintech accelerator to New York

Barclays takes fintech accelerator to New York

18 February 2014  |  6995 views  |  0 comments | 5 tweets | 5 linkedin
Startupbootcamp launches fintech accelerator programme

Startupbootcamp launches fintech accelerator programme

06 February 2014  |  9939 views  |  0 comments | 11 tweets | 10 linkedin
Fintech fund Opus Global hires Goldman Sachs veteran Julio Quinteros

Fintech fund Opus Global hires Goldman Sachs veteran Julio Quinteros

11 November 2013  |  4730 views  |  0 comments | 1 tweets | 1 linkedin
Fidor Bank expands into Russia

Fidor Bank expands into Russia

07 November 2013  |  7748 views  |  0 comments | 12 tweets | 3 linkedin
Fintech for the underbanked attracts $5.2 billion investment spend in US

Fintech for the underbanked attracts $5.2 billion investment spend in US

07 November 2013  |  8056 views  |  0 comments | 21 tweets | 4 linkedin
Former VeriFone chief Bergeron and GTCR create $500 million fintech acquisition fund

Former VeriFone chief Bergeron and GTCR create $500 million fintech acquisition fund

25 September 2013  |  8182 views  |  1 comments | 7 tweets | 2 linkedin
Israel's Bank Leumi launches fintech innovation hub

Israel's Bank Leumi launches fintech innovation hub

21 August 2013  |  6423 views  |  0 comments | 7 tweets | 1 linkedin
Square co-founder launches St. Louis fintech accelerator

Square co-founder launches St. Louis fintech accelerator

14 August 2013  |  7003 views  |  0 comments | 10 tweets | 3 linkedin
Investment in US fintech firms on the rise

Investment in US fintech firms on the rise

12 July 2013  |  8975 views  |  0 comments | 12 tweets | 14 linkedin
Sberbank sets up $100 million fintech start-up fund

Sberbank sets up $100 million fintech start-up fund

19 October 2012  |  13517 views  |  0 comments | 3 tweets | 1 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
Visit capgemini.comvisit abe-eba.euParticipate in the survey

Top topics

Most viewed Most shared
French retailer Carrefour launches online bank accountFrench retailer Carrefour launches online...
56971 views comments | 15 tweets | 35 linkedin
Can banks really win in the payments business of the future? – new Finextra reportCan banks really win in the payments busin...
8361 views comments | 23 tweets | 37 linkedin
European Commission opens public consultation on fintechEuropean Commission opens public consultat...
7617 views comments | 39 tweets | 24 linkedin
Westpac wants to take over your messaging keyboardWestpac wants to take over your messaging...
6985 views comments | 4 tweets | 10 linkedin
SecureKey taps IBM to put identity on the blockchainSecureKey taps IBM to put identity on the...
6729 views comments | 22 tweets | 15 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job