YCharts raises almost $4 million in 3rd round of funding
YCharts, a Chicago-based online stock and financial-data information provider, said Thursday it has raised $3.875 million in its third funding round, enabling it to expand its analytics to companies outside of the United States and more than double its spending on sales and marketing.
YCharts sells subscriptions to company financial information, competing with the likes of Bloomberg, Thomson Reuters and Dow Jones in the $25 billion financial-data market. YCharts is Web-based and has no plans to provide terminals as its rivals do to access their information. YCharts’ less costly subscriptions — “gold” service sells for $49 a month and “platinum” for $199, compared with a $1,500- to $2,000-a-month Bloomberg terminal — have attracted consultants, wealth managers, investment managers, institutional users and corporate sales teams. As its name indicates, YCharts offers graphics to put into perspective 250,000 types of big-picture measurements, such as the stock market and gross domestic product, and 1,500 measures on individual companies ranging from profit margins to market capitalization and revenue growth rates.
“We view ourselves as a Web-based terminal already, and our clients access YCharts from anywhere,” said CEO Shawn Carpenter, who founded YCharts four years ago after working in Google’s revenue intelligence group and running the former WallStreetView.com broker data provider. “We are expanding rapidly, from 30,000 monthly users in our first round of funding three years ago, to 350,000 at our second round in November 2011, to close to 1 million now.”
Most clients access the data from desktop computers, but Carpenter says mobile device users could grow to 20 to 25 percent of the total in the next three years, from 10 percent today.
The latest YCharts investment, led by Chicago-based Morningstar and London-based Reed Elsevier, which owns LexisNexis, brings YCharts’ total investments to $8.625 million. Morningstar, an investment research firm, holds the highest stake, 20 percent. Other investors include Amicus Capital, Hyde Park Angels, i2A Fund and Social Leverage.
Carpenter said the investment will enable YCharts, which employs 20 in Chicago and New York, to increase its salesforce to 10 from today’s “handful,” and dramatically increase its marketing spending.
Is an IPO in the future? Carpenter says the focus now is growth.