A lot of the startups you hear about are building solutions for businesses and consumers. A startup that is aiming to serve the biggest financial services users of them all is announcing a big round of funding.
Capitolis, which is building new tech to address how money is moved around in the capital markets to speed up and simplify how banks transact with each other, has raised $110 million in a Series D round. The startup has raised a total of $280 million.
Capitolis is already working with more than 100 banks, and it says that it has transacted over $60 billion from over 30 investors.
Last week, it announced that its compression technology was being used by a large network of global banks in order to reduce their exposure to Russian rubles.
It was the first time that the startup built a tool to reduce ruble exposure, and it was built specifically after being approached by these banks.
itolis was able to reduce these large exposures and promote financial soundness and stability for the benefit of the capital markets system.
That high-profile, urgent aspect of Capitolis shows the startup's position in the market and shows why it is attracting the funding from the caliber of investors that it is.
9Yards Capital is leading this round, along with a number of other investors.
The former U.S. Under Secretary of the Treasury for Domestic Finance and Counselor to the Secretary of the Treasury is joining the board. Both are senior advisers at Canapi and founding partners at 9Yards.
The Russian ruble example is an example of the challenge that Capitolis has identified and has been addressing.
Capital markets focus on giant sums of money handled through foreign exchange, equity swaps and other major capital transactions typical of big banks, but at the end of the day, a lot of the systems in place that big banks use to make these transactions are based on old infrastructure.
The problem is significant enough that when Russia decided to pull out of the financial network, many said it wouldn't be possible to do it quickly.
The Capitolis solution shows how you can take a different approach to begin the process and get it moving faster. It describes its solution as one that allows banks, investors and institutional clients to expand their reach through a collaboration platform and gateway to connect opportunities with a democratized model of institutional capital, safely removing barriers that would otherwise restrict growth in the market.
This is an interesting approach to democratizing, given the other developments we have seen in the world of finance. The solution is based on proprietary technology that allows institutions to eliminate, move or create trading positions by collaborating with other financial institutions, which in turn means a larger pool of capital and bigger credit lines.
Gil Mandelzis, Capitolis's CEO, said in a statement that they are moving to the next phase of growth as they grow rapidly. Capitolis has served over 100 financial institutions with its compression and novation engine. Our vision is becoming a reality and we look forward to super-charging our marketplace in the months and years to come.
We are excited to be partnering with Capitolis to build the next generation of technology infrastructure to support the safe, efficient growth of the capital markets. We look forward to working with the Capitolis team as they continue to grow and create a company of great legacy and impact.
Capitolis is bringing innovation to the task of making our financial system more secure and our capital markets more efficient, according to the statement from 9Yards Capital.
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