Capitolis Secures $90 Million in Series C Funding

Capitolis, a technology provider serving entities within the capital markets – including investment and merchant banks – has successfully completed a $90 million Series C funding round. Leading this investment is Andreessen Horowitz (a16z).

Investment Details and Previous Funding

Existing investors also participated in this financing, demonstrating continued confidence in Capitolis’s trajectory. These include Index Ventures, Sequoia Capital, S Capital, Spark Capital, SVB Capital, Citi, J.P. Morgan, and State Street. To date, the company’s total funding has reached $170 million.

Previously, in November 2019, Capitolis secured a $40 million Series B round co-led by SVB Capital and Spark Capital.

Company Mission and Founding Principles

Gil Mandelzis, CEO and founder of Capitolis, stated the company was founded in 2017 with a core mission. This mission centers on a fundamental reimagining of capital market operations.

This vision arose following the last financial crisis and in response to the significant regulatory changes implemented afterward.

Core Technology and Benefits

Capitolis leverages advanced workflow technology and proprietary algorithms to facilitate collaboration between banks, hedge funds, and asset managers. This allows them to efficiently manage trading positions – eliminating, transferring, or creating them as needed.

The result, according to the company, is increased capital availability, expanded credit lines, and broader access to funding sources.

Ultimately, Capitolis’s network software is engineered to optimize balance sheets and mitigate risk for financial institutions.

Growth and Platform Usage

Currently, 75 financial institutions utilize the Capitolis platform. The company reported a “sixfold” increase in its revenue run rate throughout 2020.

Since 2019, the platform has seen a 230% growth in user numbers. Capitolis has, to this point, optimized $9 trillion in gross notional balances.

Andreessen Horowitz’s Perspective

Alex Rampell, a partner at a16z, highlighted what distinguishes Capitolis within the financial services landscape. He emphasized the ambitious scale of the management team’s vision and the significant achievements in talent acquisition, technological development, and capital raising.

Future Plans and Expansion

Based in New York, Capitolis intends to allocate the newly acquired capital towards product development and strengthening its customer support and sales teams.

The company plans to expand its workforce from its current 90 employees to over 150 by the end of the year.

Capitolis currently supports foreign exchange products and equity swaps, with potential for expansion into other areas based on client demand.

Note: This article has been updated to include further details provided by the company.