FundGuard secures $100 million Series C for AI-powered investment platform
FundGuard secures $100 million Series C for AI-powered investment platform
The Israeli startup’s platform helps asset managers and their service providers to manage mutual funds, ETFs, hedge funds, insurance products, and pension funds, supporting digital transformation, operations automation, AI-based insights, resiliency, and migration to the cloud
FundGuard, which develops a cloud-native, AI-powered, multi-asset class investment accounting platform, announced on Monday the closing of its Series C funding round, amounting to $100 million. The round was led by Key1 Capital and new investors including Euclidean Capital and funds managed by Hamilton Lane. The round also saw participation from existing investors, plus the company’s earliest financial investors: Blumberg Capital and Team8. The entirety of the funding will go into the company's coffers, with the exception of a small percentage allocated for secondary deals. FundGuard has raised over $150 million to date.
"Our valuation in the current fundraising round has increased by over 50% compared to the previous round held about two years ago. Since then, we have secured significant clients and are in advanced stages of negotiating further contracts. Additionally, we have forged partnerships that facilitate our entry into new markets," CEO Lior Yogev told Calcalist.
Yogev also expressed optimism about the company's current momentum, stating, "It was relatively easy for us to recruit, as we maintained contact with several funds over time. While we received offers higher than the one we ultimately chose, the leading fund demonstrated a deep understanding of our industry landscape and challenges. Our sector is complex, particularly when dealing with major banks, and we seek individuals who grasp the intricacies of our work. Given the responsibilities associated with our core systems for investment houses, we prioritize partners who comprehend our long-term vision."
FundGuard has developed a cloud-native SaaS platform for investment management and administration that is powered by AI. FundGuard helps asset managers and their service providers to manage mutual funds, ETFs, hedge funds, insurance products, and pension funds, supporting digital transformation, operations automation, AI-based insights, resiliency, and migration to the cloud.
FundGuard was founded in 2018 by Lior Yogev (CEO), Yaniv Zecharya (CTO), and Uri Katz (VP R&D). The three had served together in Israel’s 8200 intelligence unit. Yogev had previously worked as a technology investment banker at Goldman Sachs in New York, and before that led software development teams at Radware. Zecharya was a founding partner of Bluetail, which was sold to Salesforce and later went on to lead the company’s local R&D center. Katz led development teams at various tech companies active in the big data space, including Natural Intelligence and TipRanks. The company employs over 120 people, primarily at its Israeli development center in Tel Aviv, with additional offices in Boston, New York, London, and Toronto.
"We provide core systems that, in many organizations, serve as the primary system and possess extensive capabilities rarely seen in the market," says Yogev. "The industry we operate in comprises numerous multibillion-dollar companies. We have received proposals and strategic interest in the company. There isn't much innovation like ours in this market. We believe there is an opportunity to create a company generating hundreds of millions of dollars in revenue."
