Google, in what could easily be seen as more of a strategic investment, has taken part in a $100 Million funding round for instant messaging start up Symphony. In addition to Google, Switzerland-based bank UBS, Lakestar, the European VC firm and two French investment banks, including Société Générale and Natixis along with previous investor Merus Capital have collaborated to pump in $100 million into the start up.
This makes Symphony, a start-up worth $650 million. The start-up seems to be on the good side of the investors’ preference. It has seen the likes of Goldman Sachs, Bank of America, Merrill Lynch, Credit Suisse, J.P. Morgan and Citi invest their stacks of cash into its prospective growth plans.
Symphony’s messaging platform works on the cloud. Its chat service is used by financial firms, corporates and everyday users to put communication data stored on its cloud platform
The start-up has devised advanced encryption technology that secures the users messages from the online threats. Symphony has proved to be a big hit with the financial companies after it launched its first product on September 15.
Its CEO David Gurlé stated that the start-up had a goal of raising $50 million. But as the company’s service grew in demand, investors followed with the heavy pay checks pushing the start up to double up its successive investment rounds.
Like every other start up, Symphony aims to use the invested money to expand into newer markets and add new staff under its concrete roofs.
Google’s participation will help us evolve the company beyond the financial services realm.
Google’s investment into the start-up is a first for the latter as it is the only strategic investor not be from the financial industry to have invested in Symphony.