Capital market disruptor Capitolis raises $40m in Series B
New York-based capital market fintech Capitolis has raised $40 million in a Series B funding round led by Spark Capital and Silicon Valley Bank (SVB) Capital.
The start-up’s product connects financial institutions (FIs) across the global market, allowing them to collaborate, more easily detect attractive capital sources and avoid over-utilisation of capacity which can increase costs. Investors see the fintech in a position “to transform a whole industry”.
Existing backers in the investment round included technology capital funds Index Ventures and Sequoia Capital, as well as Tel Aviv-based S Capital, bringing Capitolis’ total funding raised to date to $70 million.
“We now have the funding, the management team, and the core customer adoption to grow Capitolis into a major industry infrastructure and force,” says the start-up’s executive chairman Tom Glocer.
Spark Capital, which has funded the likes of Tumblr, Twitter and Slack, will see its partner Jeremy Philips join Capitolis’ board to help grow the investment.
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With offices in London and Tel Aviv alongside its US base, the 2016-founded company was started by ex-Thomson Reuters CEO Glocer, alongside Traiana’s founder and former head of technology Gil Mandelzis and Igor Teleshevsky.
Investors see the team “on a multi-trillion dollar mission to reduce risk in the global financial system while improving returns”.
“By connecting all the parties in the market more efficiently, Capitolis removes bottlenecks that are limiting the flow of capital,” says Index Ventures’ partner Jan Hammer.
“The response from leading banks and other financial players has shown a growing need for such a platform, and we’re excited to continue to support the team as they scale.”