Fintech company Capitolis Inc. has raised $11 million from financial giants Citi, J.P. Morgan, and State Street. The investment represents a major endorsement by three of the leading global financial institutions in Capitolis’ platform and represents further adoption of Capitolis’ proprietary technology solution. It is a strategic investment for the company which has so far raised $81 million.
The announcement follows a $40 million Series B funding round in November 2019, led by Spark Capital and SVB Capital, with participation from existing investors Index Ventures, Sequoia Capital, and S Capital. Capitolis was founded in 2016 by serial entrepreneur Gil Mandelzis alongside former Thomson Reuters Chief Executive Tom Glocer and Igor Teleshevsky. The company employs 75 people in Tel Aviv, New York, and London and is the process of recruiting dozens more.
The company’s platform helps financial institutions free up capital and remove barriers that would otherwise restrict trading. Capitolis enables firms to optimize 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.
“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,” said Gil Mandelzis, CEO and founder of Capitolis. “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.”
“We are proud to support Capitolis and its innovative approach to capital optimization and efficiency,” said Okan Pekin, Global Head of Securities Services at Citi. “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.”
“It’s been a pleasure to work with these three leading financial institutions,” said Tom Glocer, Executive Chairman of Capitolis. “It is the logical next step to add them to our capitalization table, and we look forward to their guidance in evolving our services to meet the needs of our clients for years to come.”