New York-based managed service provider for data suppliers and consumers, Crux Informatics, recently announced that it had launched Crux Deliver – a new service to enable data suppliers to deliver data to a wide range of cloud-based platforms and improve their overall delivery capabilities.
New Product Launch
Crux Informatics recently announced the launch of a new managed service, this time targeted at data suppliers, called Crux Deliver. Crux Deliver enables data suppliers to leverage Crux’s extensive data engineering, operations and support capabilities to deliver data via a number of data formats (e.g. Avro, CSV, Parquet) and using a wide range of delivery methods (e.g. API, cloud warehouse integrations, SQL, ODBC). The first major client of the new Crux Deliver service is Euronext FX.
In recent years, a growing number of data consumers have adopted cloud-based data platforms including Amazon S3, Google Cloud Platform, Microsoft Azure, or Snowflake. As these clients have made this switch, they have started pressuring data suppliers to expand their delivery capabilities to include these platforms. Unfortunately, many suppliers don’t have the expertise in-house to quickly support these new platforms. Crux Deliver provides a solution for data suppliers to outsource the delivery of their data in order to keep up with the changing technology environment. Suppliers pay Crux a fee to manage the delivery of their data.
Michael Rude, head of go-to-market at Crux explained the business problem that led to the launch of Crux Deliver, “From exchanges to alternative data providers, suppliers need to rely on a platform to deliver data quickly and at scale, rather than taking time and resources to build their own at a high cost. Our Crux Deliver offering is a turnkey solution that enables suppliers to deliver data to their customers in more formats, via more delivery methods, and with more tools. Most importantly, it reduces future technology burdens and provides an operations team to execute everything on their behalf at an affordable price.”
Founded in 2017, Crux Informatics originally provided a managed service platform for data consumers that integrates, cleans, normalizes and transforms a wide range of data sets into formats specific to each client, as well as offering investors an online portal of third-party data sources. Now the firm is looking to expand its offerings to data suppliers as well.
Since its founding, Crux has raised $41 mln over 3 rounds, including $10 mln from Goldman Sachs in a Series A round in November 2017; $11 mln from Citigroup in a corporate round in March 2018; and $20 mln in October 2018 in a Series B round from Goldman Sachs, Citigroup, and quantitative hedge fund Two Sigma. Crux also received a major endorsement from Two Sigma in 2018 as the hedge fund became a major enterprise customer of the platform.
Since the firm’s founding, it has worked with over 90 different data suppliers and handled thousands of datasets in order to meet the needs of its data consumer clients like Two Sigma. The launch of Crux Deliver was a response to a number of these data suppliers who were struggling to meet the more technically sophisticated data delivery needs of their customers.
While we expect that Crux will continue to grow the number of data consumers it serves with its original outsourced data integration platform, we also suspect the firm will look to expand the number of data suppliers it serves with Crux Deliver in the future. In addition, we suspect that Crux will look to add new data sources, tools, and more aggressively market its data portal in the coming months.
It will be particularly interesting to see how Crux positions its data portal as the data marketplace space has become increasingly crowded in recent years with S&P’s recent entrant, Nasdaq’s Quandl, Open:FactSet Marketplace, BattleFin’s Ensemble, Knoema and its DataMonster platform, and Intrinio have all launched similar offerings. Given Crux’s core business, one differentiator of their portal is likely to be the reliability and cleanliness of the data they provide due to their data validations, monitoring and managed operations. Most other marketplaces rely on the data supplier to deliver and manage their data and rely on the consumer to ensure that the data is reliable. The other good news for Crux is that they are building a diversified revenue stream through serving data consumers and suppliers in a variety of other ways.