Alpaca raises $52M Series C to take its API brokerage platform to new markets

Tech Crunch - Apr 23rd, 2025
Open on Tech Crunch

San Mateo-based startup Alpaca has successfully raised $52 million in a Series C funding round to further expand its API services for stock trading globally. The company, known for providing trading capabilities to financial services firms, is set to use this capital to enter new markets in the Middle East, Europe, and Asia. Alpaca currently serves over 5 million brokerage accounts across 40 countries and plans to bolster its presence by obtaining more regulatory licenses and introducing new products, including non-U.S. equities. The investment round saw participation from both new and existing investors, including Derayah Financial and National Investments Company Kuwait.

Founded by Yoshi Yokokawa and Hitoshi Harada, Alpaca aims to offer modern solutions to fintech startups and financial services worldwide. The company has grown significantly, with revenue and assets under custody tripling and trading volume quadrupling since its last funding round. Alpaca differentiates itself from competitors like Interactive Brokers by providing a modern, efficient platform that appeals to banks seeking contemporary financial solutions. The company has also achieved a significant milestone by becoming a fully self-clearing broker-dealer, allowing it to manage its trade processes internally. With a workforce of approximately 200 employees, Alpaca is poised for rapid growth in the international financial markets.

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RATING

7.8
Fair Story
Consider it well-founded

The article provides a detailed and accurate account of Alpaca's recent business developments, including its Series C funding round and strategic expansion plans. It is well-written and timely, making it relevant to readers interested in fintech and investment trends. However, it could benefit from a broader range of perspectives and more detailed verification of the company's claims. The article is primarily informative, with limited potential to provoke controversy or engage a wider audience. Overall, it serves as a reliable source of information for those interested in Alpaca's growth and the fintech industry.

RATING DETAILS

8
Accuracy

The story's factual accuracy is strong, with most claims being well-supported by the source. The claim that Alpaca serves more than 5 million brokerage accounts and has over 200 financial clients in 40 countries is consistent with the company's reported metrics. The details about the $52 million Series C funding round, including the investors involved, align with what is typically disclosed in such announcements. However, the story could benefit from additional independent verification of these figures, as they are based on company claims. The article accurately reports Alpaca's recent expansion efforts and strategic goals, which are corroborated by the company's public statements and business model. Overall, the factual claims are precise and supported by credible sources, though some areas like user numbers and specific client details would benefit from external validation.

7
Balance

The article provides a clear perspective on Alpaca's business strategies and market positioning, focusing heavily on the company's growth and future plans. However, it lacks a comprehensive range of viewpoints, particularly from competitors or industry experts who could provide a balanced view of Alpaca's market challenges or potential downsides. The narrative is primarily positive, highlighting Alpaca's successes and strategic moves without addressing potential risks or criticisms. Including perspectives from financial analysts or competitors like Interactive Brokers could enhance the article's balance by providing a more nuanced view of the competitive landscape.

9
Clarity

The article is well-written, with a clear and logical structure that guides the reader through Alpaca's recent developments and strategic goals. The language is straightforward and free of jargon, making the content accessible to a general audience. The use of direct quotes from the CEO adds clarity to the company's intentions and future plans. Overall, the article effectively communicates its key points without unnecessary complexity, maintaining a neutral tone that enhances reader comprehension.

8
Source quality

The primary source of information appears to be a TechCrunch article, which is a reputable technology news outlet. The story also references direct quotes from Alpaca's CEO, Yoshi Yokokawa, providing firsthand insights into the company's strategies and objectives. The reliance on a single source, however, limits the diversity of perspectives. While TechCrunch is a credible source, the inclusion of additional sources, such as financial analysts or industry reports, would bolster the article's credibility and provide a more comprehensive view of Alpaca's market impact and performance.

7
Transparency

The article is transparent in its reporting, clearly attributing information to Alpaca's CEO and outlining the company's plans and recent achievements. However, it lacks detailed explanations of the methodologies used to verify key claims, such as the number of brokerage accounts served or the specifics of the funding round. The article could improve its transparency by providing more context on how these figures were obtained and verified. Additionally, disclosing any potential conflicts of interest, such as financial ties between the publication and the company, would enhance the article's transparency.

Sources

  1. https://techcrunch.com/2025/04/23/alpaca-a-developer-of-api-brokerage-platform-raises-52m-in-series-c/
  2. https://alpaca.markets
  3. https://alpaca.markets/learn/getting-started-with-instant-funding-for-broker-api
  4. https://alpaca.markets/broker
  5. https://alpaca.markets/about-us