Citadel Securities squeezes $ 1.15 billion from venture capitalists

Citadel Securities Market Maker marked Sequoia and Paradigm’s $ 1.15 billion in venture capital investments.

This is the first time that the transaction execution giant has received outside capital from investors. the the Wall Street newspaper announced the news on Tuesday, which was followed by a formal corporate announcement.

Ken Griffin founded Citadel Securities in 2002 after years of operating the hedge fund company Citadel. Citadel Securities processes transactions on behalf of institutional and retail investors, including many clients of Robinhood Markets.

“At Sequoia and Paradigm, we have partners who appreciate how the strength of our market expertise, our advanced predictive analytics and our exceptional software engineering can redefine an industry,” Griffin said in a statement.

Sequoia led the financing, using capital from Sequoia Heritage, Sequoia Capital Global Equities and the Global Growth Fund. Alfred Lin, partner of the firm, has joined the board of directors of Citadel Securities. Sequoia’s investors include the Ford Foundation, the Mayo Clinic and MIT, according to the announcement.

According to Paradigm co-founder Matt Huang, Citadel Securities plans to expand its technology to more markets and asset classes, including cryptocurrency.

“As technological innovation in financial markets becomes more and more important, we see huge opportunities to meet the needs of our clients in more markets and more products,” added Peng Zhao, CEO of Citadel Securities , in a press release. “Our partnership with Sequoia and Paradigm puts us in an even stronger position as we continue to grow our business, expand into new markets and attract the brightest minds in the world. ”

The news comes nearly two months after a Florida federal judge dropped a lawsuit accusing Robinhood and Citadel Securities of colluding to prevent investors from buying so-called memes amid high market volatility. Institutional investor Previously reported.

“There is no allegation that Citadel Securities threatened or suggested to sever business relations with other defendants if they did not impose trade restrictions, and the plaintiffs have not explained why each defendant does not. would not simply use another market marker in such a scenario, ”Judge Cecilia Altonaga wrote in her ruling.