CloudMargin raises $15m Series B from Citi and Deutsche Bank
CloudMargin, a fintech start-up offering a collateral management solution, has landed $15 million in a Series B funding round.
Major banks Citi and Deutsche Bank, as well as exchange Deutsche Börse, have all weighed in on the start-up’s largest investment.
CloudMargin offers to the sell-side and the buy-side, as well as outsourcers and technology firms, a cloud-based workflow for collateral management.
The Software-as-a-Service (SaaS) solution, used by investors Citi and Deustche, bypasses on-premise software. It says it delivers “straight-through processing all in one place”.
It does this by aggregating collateral data, automating the collateral workflow, and offering a public application programme interface (API) for third party integrations.
CloudMargin claims to plug in to more than 20 partners, including SWIFT, IHS Markit and Nasdaq.
Customers typically include brokerage firms, banks, asset management firms, pension funds and insurance companies.
“Firms are placing a strategic priority on adopting modern, SaaS based cloud technologies that provide agility as well as operational and cost efficiencies,” says CEO, Stuart Connolly.
What investors think
The fresh funding will go in part to product development, as well as geographic expansion in the US and Asia.
CloudMargin “brings crucial momentum to all players in the collateral management industry from the largest investment banks to small and medium-sized buy-side institutions,” according to Deutsche Börse.
Tilman Fechter, banking, funding and financing head of Börse’s Clearstream, adds that a collaborative approach is key.
“Joining forces between established trusted players and a flexible start-up like CloudMargin is essential to future-proof the business for all market participants,” says Fetcher.
Both Citi and Deutsche started using CloudMargin back in 2018. Both banks say the investment is testament to how invaluable they find the start-up’s product in day-to-day operations.
To date, CloudMargin has raised $35 million through equity issuance. Other investors include customer IHS Markit, as well as Jefferies and Illuminate Financial.