The consortium is led by New Enterprise Associates (NEA) and includes Legg Mason, Cascade Investment LLC, and T. Rowe Price. They join existing investor Index Ventures, which led the companyâs $17-million Series A investment in September 2005. "This investment is important to OANDA, not only as a vote of confidence in the way we do business, but because the additional capital solidifies our ability to serve corporate and institutional clients," said Michael Stumm, CEO and co-founder of OANDA Corporation.
OANDA successfully redefined the business model and the practice of currency trading with the release of FXTrade, which challenged the way old-line forex brokers had traditionally served currency traders. OANDA has made it possible for investors to take advantage of tight spreads, more flexible trade sizes, continuous interest, and true straight-through processing (STP) â important features that previously were not uniformly available to all investors. "From the outset one of our most important goals was to democratize the forex market. We will use our new capital to continue that pursuit as we develop new products and services in this emerging marketplace," added Richard Olsen, who co-founded OANDA with Stumm in 1996.
Krishna Kolluri, a general partner at New Enterprise Associates who will join the OANDA board of directors, explained that "OANDAâs trading platform is technologically the most sophisticated in the industry and was a big reason for our investment. It is OANDAâs use of that technology to redefine currency trading that separates it from its competition. We look forward to a long and successful relationship with this outstanding team."