Capitolis raises $110 million at $1.6 billion valuation
Institutional trading optimization company Capitolis has announced that it has raised a $110 million Series D funding round, at a $1.6 billion valuation, driven by the rapid emergence and market acceptance of its marketplace solutions. The fundraise is co-led by top fintech investors Canapi Ventures, 9Yards Capital, and SVB Capital. Existing investors in Capitolis include a16z, Index Ventures, Sequoia Capital, S Capital, Spark Capital, Citi, State Street and J.P. Morgan.
To date, Capitolis has raised a total of $280 million.
In connection with the funding round, Jeffrey Goldstein, senior advisor at Canapi Ventures, Dan Beldy, partner at Canapi Ventures, and George Osborne, Founding Partner at 9Yards, join the Capitolis Board of Directors. All bring deep financial services and technology expertise and important experience on policy issues related to banking, regulatory reform and financial stability. Previously, Osborne served as an advisor to BlackRock following his role as UK Chancellor of the Exchequer; Goldstein, who sits on the Board of Directors of Bank of New York Mellon Corporation, previously served as Managing Director and Chief Financial Officer of the World Bank; Beldy is a founding partner at Canapi Ventures and previously served as Managing Director of Steamboat Ventures, the venture arm of The Walt Disney Company.
Canapi Ventures is co-led by Managing Partners Gene Ludwig and Chip Mahan. Ludwig served as Comptroller of the Currency under President Clinton before going on to co-found Promontory Interfinancial Network, an FDIC deposit-routing network serving approximately 2,900 financial institutions, as well as Promontory Financial Group, a regulatory and compliance consulting firm for large financial institutions. Mahan founded and currently serves as CEO and chairman of Live Oak Bancshares; he also co-founded nCino, founded Security First Network Bank, one of the world’s first internet banks, and previously led S1 Corporation.
9Yards was co-founded by George Osborne, Theo Osborne & David Fisher in 2018. Prior to this, George Osborne served as the UK’s Chancellor of the Exchequer as one of the longest serving finance ministers in the G7. George devised the open banking regime and the FCA ‘sandbox’ among many other regulations that positioned the UK as a global fintech leader. George also sat on the National Security Council and chaired the UK’s Cybersecurity Committee.
Capitolis combines deep capital markets expertise with a Silicon Valley mindset to bring the sharing economy to the forefront of the financial services industry. Capitolis enables 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.
“Over the past two years, our vision to reinvent capital markets has gained tremendous momentum as we have tripled our revenue, customer base and team,” said Gil Mandelzis, CEO and Founder of Capitolis. “We are just scratching the surface on reimagining the capital markets. We are thrilled to have partners like Canapi, 9Yards, and SVB Capital who bring strategic expertise, a true passion for the mission and a powerful network to leverage as we embark on our next chapter of growth.”
Canapi Ventures’ Partner Dan Beldy commented,
“We are thrilled to be partnering with Gil, Tom and the entire Capitolis team as they build the next generation of technology infrastructure to help support the safe, efficient growth of the capital markets. At Canapi Ventures we are focused on great leadership teams and category defining innovations that help create a healthier, more robust and more inclusive financial ecosystem. We look forward to working with the Capitolis team as they continue to grow and create a company of great legacy and impact.”
9Yards’ George Osborne commented,
“At 9Yards Capital we’re impressed by Capitolis and the innovation it is bringing to the task of making our financial system more secure and our capital markets more efficient.”
Tom Glocer, Executive Chairman and Co-Founder of Capitolis, said, “The additions of Jeffrey Goldstein, George Osborne and Dan Beldy to the Capitolis Board of Directors will strengthen an already world-class board. In particular, their years of experience in balancing sound regulatory policy and financial stability with innovation in financial markets will help guide Capitolis as we scale our technology and impact in global capital markets.”
“As an existing investor and commercial partner to Capitolis, we have seen firsthand the notable understanding Capitolis has in providing solutions to marketplace participants to achieve their business goals,” said Tilli Bannett, Managing Partner, SVB Capital. “We continue to be impressed by the company’s deep expertise and creativity in making capital markets more efficient, thereby freeing up necessary resources for participants to innovate and deliver financial solutions customers need.”
Tobias Krause, Senior Managing Director, State Street, commented,
“We are impressed with Capitolis’ vision of creating a healthier, safer, efficient marketplace for matchmaking, discovery and resource optimization. At State Street, we have benefitted from dynamically reducing, and optimizing our exposures, which has created even more capacity to serve our clients in our growing business.”
“We are now moving to the next phase of growth for Capitolis as we grow exponentially year after year and deliver increased innovation for capital markets. Just two years after launch, the capital marketplace business has already transacted $60B+ notional from over 30 investors. Capitolis has optimized over $13 trillion in trades through its compression & novation engine, serving over 100 financial institutions. Our vision is becoming a reality and we look forward to super-charging our marketplace in the months and years to follow,” concluded Mandelzis.
Our vision is to reimagine how capital markets operate. Capitolis is the leading capital marketplace that drives financial resource optimization for market participants. Founded in 2017, Capitolis’ technology enables financial institutions to optimize their resources, execute seamlessly with new market participants, and achieve greater access to more diversified capital, all of which enable fairer, safer, and healthier capital markets. Our team brings decades of experience in launching successful startups, technology and financial services and is growing rapidly from our offices in New York, London and Tel Aviv.
ABOUT CANAPI VENTURES
Canapi Ventures is a venture capital firm investing in early to growth-stage fintech companies. Our partners have been at the forefront of financial services innovation as operators, investors, bankers, advisors, and regulators. Our venture capital model connects high-quality fintech companies to our extensive network of banks and strategic partners. Canapi Ventures is advised by CenterHarbor Advisors and Canapi Advisors, LLC, a wholly owned subsidiary of Live Oak Bancshares, Inc. (Nasdaq:LOB).
ABOUT 9YARDS CAPITAL
9Yards is a global growth-stage investment firm focused on Fintech and Logistics. We back visionary teams seeking to transform how the world trades, transacts and interacts. 9Yards leverages its unique regulatory perspectives and sector expertise to provide its partners with robust operational resources and support as they scale. 9Yards is proud to partner with world-class companies including Robinhood, Toast, Carta, Chainalysis, Remote, Gusto, TaxBit, Emerge and Deliverr.
ABOUT SVB CAPITAL
SVB Capital manages more than $6 billion of assets, primarily in equity funds (including funds of funds and direct investment funds) and credit funds. Uniquely positioned to access the most sought-after opportunities in technology, life sciences and venture, SVB Capital invests in fund managers and private companies throughout the innovation economy around the world. SVB Capital is one of SVB Financial Group’s (Nasdaq:SIVB) core businesses.