Capitolis, an SaaS platform that drives financial resource optimisation for capital markets, recently announced the completion of a strategic investment from the following: Citi, J.P. Morgan and State Street.
The SaaS platform drives financial resource optimisation for capital markets and was founded in 2017. Capitolis‘ network software enables financial institutions to optimise their balance sheets, which creates a fairer, safer and healthier marketplace. Over 50 financial institutions, as well as many hedge funds and asset managers, leverage Capitolis’ technology to bring the best services to market and achieve high levels of return, while using the most appropriate amounts of their financial resources. It is backed by investors such as Index Ventures, Sequoia Capital, Spark Capital, SVB Capital and S Capital; the company has offices in New York, London and Tel Aviv.
The recent transaction represents a collaborative effort by the three leading global financial institutions to drive further adoption of Capitolis’ proprietary technology platform, which helps financial institutions free up capital and remove barriers that would otherwise restrict trading.
Gil Mandelzis, CEO and founder of Capitolis, said, “We are excited to have three of our trusted partners provide further support for our vision and business model focused on transforming the marketplace for the benefit of all participants. While we have made great strides over the past three years since starting the company, it is only the beginning of our work in creating a new industry standard through collaboration, innovation and technology. There is much more transformation yet to come.”
The announcement follows a $40 million Series B funding round this past November, led by Spark Capital and SVB Capital, with participation from existing investors Index Ventures, Sequoia Capital and S Capital. Capitolis intends to use the funds from this latest investment to further accelerate its technology and product development, as well as expand sales and marketing initiatives in the months ahead.
Okan Pekin, Global Head of Securities Services at Citi, said, “We are proud to support Capitolis and its innovative approach to capital optimisation and efficiency. We have been growing supporters of the platform since its inception and believe Capitolis’ unique approach will play a significant role in enhancing global markets by driving increased industrywide collaboration to achieve higher growth.”
“Capitolis’ approach to innovation within the financial markets is unique and transformational. We are happy to support them as they invest and build technology that helps free up capital creating greater efficiencies within the global markets industry,” said Troy Rohrbaugh, Head of Global Markets, J.P. Morgan.
Tobias Krause, Head of Global Markets Resource Management for State Street, said, “State Street is very pleased to announce this latest investment, which is another significant milestone in our three-year partnership with Capitolis. Their products have improved resource efficiencies and unlocked previously idle capacity in OTC markets. This ultimately helps our organization deliver better results on behalf our clients and ensures market participants have great access to financial resources. We look forward to continuing our work with Capitolis.”
Tom Glocer, Executive Chairman of Capitolis, said, “It’s been a pleasure to work with these three leading financial institutions. It is the logical next step to add them to our capitalisation table, and we look forward to their guidance in evolving our services to meet the needs of our clients for years to come.”
Capitolis enables firms to optimise their balance sheet exposures through collaborative technology by eliminating unnecessary positions and finding the most suitable party to hold the remaining positions. To date, Capitolis has eliminated $5 trillion in overall positions for more than 50 financial institutions, including many of the world’s largest banks, as well as leading hedge funds and asset managers.