Fintech startup CapStack raises $6 million in pre-Seed to improve cooperation between banks
The startup is developing an integrated operating system for banks that is meant to provide them with visibility into one another’s portfolios
Fintech startup CapStack has announced that it has raised $6 million in pre-Seed funding as it aims to facilitate collaborations between banks and other financial institutions, primarily in the U.S. The integrated operating system for banks is meant to provide them with visibility into one another’s portfolios and help them foster cooperation, enabling asset diversification, and enhanced profitability.
Full list of Israeli high-tech funding rounds in 2023
The funding was raised back in March and was led by Fin Capital. It included participation from Alloy Labs, Cambrian Ventures, Cowboy Ventures, Future Perfect Ventures, Gaingels, Selah Ventures, Uncorrelated Ventures, and Valor Equity Partners.
CapStack essentially raised the money pre-product after only being founded in March by CEO Michal Cieplinski, a serial entrepreneur who co-founded fintech company Pipe and was among the founding team at Fundbox, and CTO Tzvika Perelmuter, a 8200 graduate, and the former head of the R&D team at Fundbox.
The founders identified a problem that lies in the U.S. banking landscape, comprising around 7,000 banks, each operating independently with different languages, technologies, and core systems. However, they all face common issues, such as diversifying asset portfolios to mitigate risks and meeting regulatory requirements.
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The recent example of SVB's collapse serves as a powerful illustration of the consequences a bank may face if it fails to diversify its assets adequately.
According to the company, over 60 different banks in the U.S. have already agreed to join the platform. CapStack currently has a team of six people, with Perelmuter heading the R&D team in Israel, and Cieplinski being based in the U.S.
