May 26, 2022

Most of the fintech startups you hear about create solutions for consumers and businesses. Today, a startup that aims to build technology to serve the biggest users of financial services — the big banks themselves and how they move money — is seeking a major funding round to double that opportunity.

Capitolis, which is developing new technology to study the movement of money in the capital markets and make it easier for banks to deal with each other, has raised a $110 million Series D that is said to have been funded by a US-Israeli firm. in $1.6 billion. In this latest round, the total amount raised by the startup was $280 million.

Capitolis is already partnering with more than 100 major banks – the company claims its technology was put into production in a very timely manner: the company said last week that its compression technology would be used “for global banks.” risk. For the Russian ruble, this is a step associated with a global step to impose sanctions against Russia and its financial institutions after unprovoked attacks on Ukraine.

The creation of instruments for hedging ruble risk was a first for the startup, and it was something that was purposefully created after contacting these banks.

“Capitolis has been able to mitigate these major risks and ensure financial strength and stability for the benefit of the capital markets system as a whole,” it said in a statement.

This high-profile, vital aspect of Capitalis’ work outlines the startup’s position in the marketplace and explains why it attracts funding of the caliber of investors.

Canapi Ventures, 9Yards Capital and SVB Capital (all active fintech investors) are leading the round along with a16z, Index Ventures, Sequoia Capital, Ace Capital, Spark Capital, Citi, State Street – a name that has also been mentioned in the press. More recently, he has begun to follow the elusive global movement of Russian oligarchs and their money – and JPMorgan is also involved in this.

Through this funding, in part, Jeffrey Goldstein, former U.S. Secretary of the Treasury for Domestic Finance and Advisor to the Secretary of the Treasury; and George Osborne, former UK Chancellor of the Exchequer, will also join Capitalis’ board of directors. (He is a senior advisor at Kanapy and founder of 9Yards, respectively.)

The example of the Russian ruble highlights a problem that Capitalis has recognized and accepted, and a problem that, to some extent, is inherent in any legacy financial service.

Capital markets focus on the large amounts of money that are transacted through foreign exchange, equity swaps, and other large capital transactions by large banks; But at the end of the day, many of the systems used by large banks to conduct these transactions are based on legacy infrastructure where money flows through multiple transaction points, which can lead to delays and therefore costs.

In fact, the problem is so big that when they first started talking about separating Russia from the SWIFT financial network, many said that it would not work out very quickly.

While that may be the case, Capitalis Solutions shows you how you can take a different, new approach to getting the process up and running. He describes his solution as a solution that “allows banks, investors, and institutional clients to empower themselves to connect opportunities with a democratic institutional capital model through a collaborative platform and gateway that safely removes barriers that would otherwise hinder market growth.” “.

Democratization is the key word here, and it’s quite an interesting approach that we’ve seen in the decentralized finance world. The Capitalis solution is based on proprietary algorithms that allow institutions such as banks, hedge funds and asset managers to liquidate, transfer or create trading positions, partnering with other financial institutions to hold positions which in turn transfer capital. and larger credit lines.

“We are now moving into the next phase of Capitalis growth as we accelerate year after year and bring more innovation to the capital markets,” he said. This is stated in a statement by Capitalis CEO Gil Mandelzis. “TeaTwo years after its launch, Capital Marketplace has already closed a fictitious deal worth more than $60 billion from more than 30 investors. Capitolis has streamlined over $13 trillion worth of transactions with its compression and innovation engine and serves over 100 financial institutions. Our vision is becoming a reality and we look forward to growing our market in the coming months and years.” Note: Mandelzis co-founded the company with Tom Glozer (former head of Thomson Reuters who is a director of Morgan Stanley and has invested in and co-founded other fintech startups).

Dan Beldy of Canapy Ventures said in a statement: “We are excited to partner with Gill, Tom and the entire Capitalis team as they build the next generation technology infrastructure to support the safe and efficient growth of the capital markets.” “At Canapy Ventures, we focus on great leadership teams and category-defining innovation that help build a healthier, stronger, and more inclusive financial ecosystem. We look forward to working with the Capitalis team as they continue to grow and build a company with great heritage and influence.”

“At 9Yards Capital, we are inspired by Capitalis and the innovation it brings to make our financial system safer and our capital markets more efficient,” Osborne said in his own statement.

Leave a Reply

Your email address will not be published.