Foreign Exchange Nets Currenex $22M Venture Capital Deal

In a possible precursor to an e-revolution in the $3 billion-a-day foreign currency exchange market, Currenex Inc. is expected to announce today that it recently raised $22 million in its first institutional round of venture funding.

The company, which up until last week was known as FXTrades, had been previously financed through a series of angel investments.

TH Lee.Putnam Internet Partners led the Series A transaction. Additional participants included WR Hambrecht & Co. and Donaldson, Lufkin & Jenrette Inc.

With a handful of Web sites already devoted to online currency trading for financial institutions, Currenex hopes to make a name for itself by expanding its potential customer base to include corporations.

“Corporations are major players in this market, and we think that they will welcome the opportunity to transact this type of business through an online B2B model,” said Lori Minek, president and chief executive of Currenex. “We’ve actually been operating in stealth mode for a while now and have already been involved in some transactions with major corporations.”

Mirek would not divulge any further details about the company’s business plan at press time, except to say that Currenex is currently in a state of “exceptional liquidity” and has already established relationships with a number of financial institutions.