# The Small Exchange

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/the-small-exchange

- Industry: Financial Services
- Headquarters: Chicago, US
- Website: www.thesmallexchange.com
- Total disclosed funding: $20M
- Latest round: Seed (May 16, 2019)
- Investors on record: 4

## About

The Small Exchange, Inc. focuses on simplifying futures trading by providing small, standard futures contracts that cater to a diverse range of traders, from retail investors to institutional participants. Founded in 2017 and headquartered in Chicago, US, Small Exchange, Inc. develops futures trading solutions. The CEO is Donald Roberts. The Small Exchange specializes in offering futures contracts that are designed to be small, standard, and simple, addressing the accessibility challenges traditionally associated with futures markets. Their core product offerings include various futures contracts that provide traders with capital-efficient alternatives to stocks, while maintaining a user-friendly structure that promotes ease of trading. The Small Exchange aims to serve a diverse range of traders, from individual retail investors to institutional participants, by delivering products that have a standardized tick size and expiration date. By simplifying the complexities of futures trading, the company seeks to cater to a global client base that spans North America and potentially other regions interested in futures trading. The Small Exchange products are positioned as holistic representations of financial markets, facilitating quicker execution of trading strategies and providing a manageable road to capital efficiency for users.Revenue generation for The Small Exchange is primarily driven by transaction fees associated with trading its futures contracts. Each trade executed through the platform incurs a fee, which constitutes the foundational element of the company's revenue structure. The firm engages in partnerships with clearing and non-clearing firms to enhance market participation, allowing these partners to offer Small Exchange products to their customers. Additionally, the company may generate revenue through its Liquidity Provider Incentive Program, which encourages participants to provide liquidity within its markets. As traders execute transactions involving futures contracts, they engage in a straightforward pricing model based on the volume of trades, which allows the company to capture revenue efficiently through its trading mechanisms. The specific pricing details related to individual products or services are aligned with the organization's goal of fostering widespread adoption of its standardized offerings. In October 2025, Kraken, a portfolio company of BLN Capital, Dedicated VC, Soul Ventures, Socially Financed, The 6ixth Event, Paradigm, Venture Garage, Tribe Capital, Ahimsa VC, Electric Capital, Fidelity Investments, General Atlantic, RIT Capital Partners, Arceau, Raison Asset Management, MAK VC, Flux Capital, Eterna Capital, Midrock, Money Partners Group Co., Ltd., SBI Investment, Trammel Venture Partners, Blockchain Capital, Digital Currency Group, G1 Venture Capital, and Hummingbird Ventures, acquired Small Exchange, Inc. from IG Group For USD 100 million. The acquisition enables Kraken to expand its product offerings to include perpetual futures contracts for U.S. customers.

## Funding rounds

- Seed, May 16, 2019, $10M — Citadel LLC, Jump Capital
- Seed, Jan 3, 2019, $10M — TastyWorks, Inc., PEAK6 Investments

## Investors

- TastyWorks, Inc. — Seed
- PEAK6 Investments (https://capitalatlas.ai/funds/peak6-investments) — Seed
- Citadel LLC — Seed
- Jump Capital (https://capitalatlas.ai/funds/jump-capital) — Seed